The price of one ounce of silver has hit $100 for the first time ever.  Gold is close to hitting $5,000 per ounce.

This puts the metals at an approximate ratio of 50 to 1.  It is an interesting statistic to note, regardless of how relevant you think the ratio is.  I wrote about the gold-to-silver ratio on June 1, 2025 when it was about 100.

I wrote a post about gold and silver on October 17, 2025.  It was just over three months ago.  Gold had just passed the $4,000 mark, and silver had passed the $50 mark.

So, in just over three months, the price of silver has doubled, and this came after it had already hit a new all-time nominal high.

It is crazy to see silver go up by 5 or 6 dollars in a day.  I can remember when silver traded at about $5 per ounce.

This is a parabolic move.  Perhaps it is just the last part of the Everything Bubble.  But something has to give.  Either the price of silver is going to come down from here (more than temporarily), or the U.S. dollar will continue its major descent.

The Financial Media

Perhaps I have been listening to too much Peter Schiff, but I was watching CNBC today as gold and silver hit new all-time highs.  I didn’t have the volume on, but I could see the headlines, and I could see the ticker at the bottom of the screen.

The price of Bitcoin kept flashing up on the screen, probably every 10 seconds.  It took me several minutes of watching before I saw the prices for gold and silver.  I must have seen the price of Bitcoin flash about 20 times before I saw the metal prices.

In other words, CNBC is still obsessed with Bitcoin while mostly ignoring the huge run-up in gold and silver, which is something that Peter Schiff has pointed out.  Maybe they are just giving their customers what they want to see.

I expect that this is common in most of the financial establishment media.  Of course, there is alternative media out there that is talking about the historic runs for gold and silver.

This is why the huge run for gold and silver doesn’t seem as much like a bubble.  It isn’t getting that much attention by the establishment media.  Then again, perhaps they ignore it as much as they can because they have never really been bullish on the metals.  It may seem like something of an admission that the dollar isn’t exactly sound these days.

And to be sure, this is a reflection of the U.S. dollar.  It is a reflection of the horrible economic situation we face in the United States.  The national debt will probably hit $40 trillion this year, and there is no sign of slowing down.  If anything, it is just speeding up.

If the national debt is going parabolic, then it would make sense for gold and silver to follow.

Mining Stocks

Mining stocks have finally taken off in the last year or so.

GDXJ (gold miner juniors) has a 52-week low of 45.69.  Today, it hit 145.41.  That is more than three times its low from about a year ago.  This is an ETF; not a stock.

GDX has a 52-week low of 36.84.  Today it closed at 107.02.  That is almost triple.  Again, this is an exchange-traded fund.  It isn’t one stock.

These mining stocks are making the Nasdaq look stable by comparison.  They could run a lot higher than this too, depending on where this whole thing goes.  If we hit a recession, we could also see some huge losses for these mining stocks.

Recession

A recession is probably the only thing that can break this bull market in metals.  This doesn’t mean there won’t be significant pullbacks along the way.

But even with a recession, it is hard to bet against gold and silver right now.  If the Everything Bubble pops, it will probably hurt most asset classes, which should include gold and silver.

Here’s the issue though.  The federal government is already spending money like crazy, and the Fed has already returned to a minor version of quantitative easing (digital money printing).  Imagine what will happen if we hit a deep recession.

The Fed, especially with the current administration making appointments to the committee, will go ballistic creating money out of thin air.  Congress will increase the debt at an ever-greater rate, and the Fed will monetize this debt.

When investors realize that there is no end in sight for the destruction of the dollar, along with foreigners dumping the dollar, where do you think they will turn?  Foreign central banks are already trying to protect themselves against the U.S. government by buying gold.  They are tired of the threat of sanctions and tariffs. They are turning away from the dollar in international trade.

A recession is typically bad for gold and silver if there is somewhat of a price deflationary aspect to it.  But if you get a recession with a majorly declining dollar, that will be different.

A Strategy

The most important thing is to be diversified.  If you have made a lot of dollar profits from owning gold, silver, and/or mining stocks, then it doesn’t hurt to take a little off the table as things run higher.

At the same time, you want to keep significant enough exposure in order to hedge against a falling dollar.  As consumer prices continue to increase, it doesn’t make sense to have significant assets piled in the bank or dollar-denominated assets like bonds without also having an inflation hedge.

The days of the U.S. dollar as the world’s reserve currency are quickly coming to an end.  This is what happens when the government engages in endless empire building and continually increasing the debt.  Gold and silver prices are finally reflecting this reality.