Nugget News February

30 Day Market Moves

Silver $116.40 (+0.25%)

Silver Outlook...This Silver run has seen it's ups and downs. We always say taking profits and big pullbacks are healthy for an asset that is running over 130% up in the last 12 months. Gold and silver prices rebounded today after suffering a historic sell-off. The sell-off was triggered by a combination of factors, including a rebound in the U.S. dollar, shifts in expectations around Federal Reserve leadership following President Donald Trump’s nomination of Kevin Warsh as the next Fed chair, and position-trimming ahead of the weekend.

A new study published last month projected that global silver demand will surge this decade, driven largely by solar photovoltaics and the shift to more silver-intensive cell technologies. Total demand is forecast to reach 48,000 tonnes to 54,000 tonnes a year by 2030, while supply is expected to rise only to about 34,000 tonnes, meaning just 62%-70% of demand would be met.

-The solar sector alone is seen consuming 10,000-14,000 tonnes annually, or up to 41% of global supply.

Gold Outlook...As Gold is up over 7% today, some analysts note that the recovery in the precious metals confirms a growing consensus that the recent selling pressure is related to short-term speculative positioning and momentum rather than a fundamental shift in the marketplace.

One German bank has been fairly vocal, reiterating its bullish expectations for gold. On Monday, Michael Hsueh, Head of Metals Research at Deutsche Bank, said that although precious metals investors should be cautious as market volatility remains high, the investment case for gold remains unchanged.

Hsueh said that despite the volatility, the gold market remains on track to hit $8,500 an ounce by the end of the year.

The factors supporting gold prices since last year remain firmly in place: trade and geopolitical uncertainty persists; G7 debt dynamics look increasingly unsustainable and are likely to worsen — not only in the US with the ‘Big, Beautiful Bill’, but also in Japan and in Europe amid rising defence spending. Appetite for the US dollar, other major currencies, and sovereign bonds remains fragile, and that should continue to underpin the bullish case for hard commodities.

Chinese Bullion Frenzy!...With demand for gold and silver at a fevered pitch, speculative mania has driven premiums in China to extremely high levels, creating tension in the marketplace. The precious metals frenzy created by rapidly rising prices has increasingly exposed Chinese investors to high levels of risk as local prices soar high above international benchmarks.

Shenzhen is home to the largest physical bullion marketplace in China. Last fall, the local industry association issued a warning, citing a crackdown on three companies unable to make deliveries or release funds. A major seller in the city’s Shuibei market recently defaulted on delivery, leaving more than 350 people waiting for compensation.

This underscores one of the primary dynamics driving the silver market. There simply isn’t enough metal. Meanwhile, China’s sole pure-play (silver only) silver fund recently halted trading temporarily and turned away new investors. Bloomberg characterized the appetite for precious metals in China as “insatiable.”

-Silver charted its fifth consecutive structural market deficit in 2025 based on preliminary analysis of the data.

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*This newsletter does not contain any investment advice.