Q&A With Johnny:

Q: What caused the rapid increase in the price of precious metals in January?

J: Okay, that’s a question! The short and simple answer is that there are more buyers and sellers. That’s the fundamentals of a free market. But the more important question is: why are there more buyers and sellers? There is a clear reason there are more buyers and sellers, and that is because there’s an increase in uncertainty in the world.

That’s all there is. It’s not political, but it has everything to do with global politics and policies. But you have to remember that, at its core, precious metal is simple. Prices go up when there is uncertainty, inflation rises, and the dollar is devalued. Why, because for centuries, gold and silver have been prized as a safe haven in times of economic crisis.

Q: Although there is currently a reversal, overall, will the precious metal prices continue to climb?

J: So that ties with the volatility of the market. You have to ask yourself: Is the reason it’s been so volatile over the last 6-8 months declining or increasing? I would have to argue that it was the latter. So, that would indicate to me that prices will continue to rise overall.

Q: Has the market ever experienced this before?

J: Not that we’re aware of, at least based on the research I’ve done and heard. All the experts that I have listened to over the past three or four weeks say this is absolutely unprecedented. Silver has never doubled its high, this fast- the high being $50/oz. This is making a new outline if and when this happens again. There could be smaller examples, but nothing on this scale- it’s pandemonium.

Did wholesalers really quit buying silver during the speculative bubble?

J: I would say they didn’t quit buying. I would say they ceased having trades, which sounds an awful lot alike. But it is very different. They paused, and we all had to pause. When you’re thirsty, it’s nice to get a drink out of a drinking fountain, but it’s not so nice to get a drink out of a fire hydrant. And we were drinking out of a fire hydrant- we had to stop. They had to stop.

I can tell you a funny thing: we couldn’t sell silver fast enough. I told clients all the time that I felt like Scrooge McDuck- you remember- him swimming in his vault of silver and gold coins, right? Well, all of a sudden, the buyers came back to the market. And now, wholesalers are telling us they are running out of gold. Last week, they didn’t want it, and this week, they’re running out, and it flipped instantly. Sometimes that’s one of the most infuriating things about this d*** business. It just flips, you know? I went from having more gold and silver in surplus to people just buying like crazy. Today (2/3/26), we had nothing but buyers, no sellers.

Q: What impact does the central bank’s buying have on the prices?

J: If you think about it, they constitute more buyers. They are buying more, and why? Because they want a safe haven from market uncertainty. This brings us back to the original question: Is there less uncertainty now and in the foreseeable future than six months ago, or more? I would argue that we will continue to see more uncertainty. Individuals, banks, and investors will continue to buy precious metals because they have long been considered safe havens.

Q: What role have dollar devaluation fears played?

J: Well, there has always been a fear of the dollar collapsing. However, the dollar is still the strongest currency on the market. But it is also well known that President Trump loves a weak dollar; he always has. It’s one of the reasons why the metals went up so high when he was in his last term. I’m not saying anything political here; I am just stating the facts. Now, as long as the dollar remains weaker, metals are going to go up. But it’s not just the US dollar that is getting weaker. It’s all global currency, so you have to think of it in a global macroeconomic way.

Do you expect gold to retreat to 2025 numbers?

J: Sure, why not? At this point in time and this environment, I would not be surprised at all. I will say that if you had asked me a year ago, “Hey Johnny, do you think gold reach over $5,000/oz or silver $120/oz I’d have told you you were off your rocker, and you might as well go look for unicorns! I’ll say this: my gut feeling is that we won’t see that, but we’ve been wrong before, and we are in new territory. Just remember that if you bought at $115 and it goes down to $35, you’re still ok because you own the metal and no one took the ounces from you.

Your acquisition cost was a little bit more, but in the grand scheme of things, it’s going to be fine. The key with gold and silver is to never panic. If you think it’s not right to sell today, don’t do it. Don’t let anyone convince you because of this war or that war or this president versus that president in the past said this. All that is nonsense. It’s just safety and security, and that’s all you’re buying into. Don’t worry about the acquisition cost; just focus on the choice you made to buy it and own it. If you can get in that frame of mind when buying or selling, you will be fine.

Q: What do you say to people who want to sell now?

J: Well, I’d say the same thing that I say to everyone: it hurts my heart. I would ask them why they are selling. If you have a good reason, like reallocating to a property that’s undervalued, where you are going to do well in that investment, then that’s a good decision to sell. Then, eventually, replace the silver. If you are selling precious metals to buy something like pizza and beer, or something that does not protect or build your wealth, then that’s the craziest thing I have heard.

Why not have a secure plan B tucked away in the promise of gold and silver? Have it on hand when you need it for a house payment or to pay a large medical expense. Use it when it matters. Why not have tangible safety? Why not have tangible security? What does that security cost? Apparently, if silver is $30 and you bought it at $115, then that is the cost. Is that worth it? What is safety worth to you?

Q: What are some of the misconceptions that you want to address for concerned investors?

J: Well, a lot of misunderstandings have to do with what they call the “paper market”, which is the futures precious metals market. A lot of times, people confuse the futures market with the physical metals market. They try to correlate them, but they are two distinct markets.

In the futures market, no one wants to take delivery of actual metals. However, China and Mumbai are taking money and delivering on future contracts. In fact, China is buying, buying, buying silver mines in places like Mexico to accumulate metals. As one of the largest buyers, they are no longer exporting any silver from China. They are holding on to it, which is probably one of the factors driving the rapid rise in silver and gold prices.

But it’s not just China. Other parts of the world are trying to increase their silver holdings. They know that silver will play an integral role in our future. With the numerous uses of silver in manufacturing, from A.I. to solar, everything takes a bit of silver. So if you can control that commodity, you can control the pricing of products that use silver. This is known globally, and investors and banks are also stocking up.

To add to the buying frenzy, there has recently been a fundamental shift in the gold market hub. JP Morgan just relocated its precious metals trading desk to Singapore, signaling a shift from the US to Asia as a physical market hub. This is a big deal and shows a lot of what is to come. This leads one to believe it’s time to follow suit and buy.

Q: That leads right into our next question. Should people buy gold or silver on the dips?

J: If you are a trader and are actively watching the market, it’s a strategy that can work for some people. However, if you are not good at it and don’t stay on top of it, you can lose a lot of money. Buying in the dips and selling in the highs can be a tricky strategy for precious metals. Think of it this way: when you buy precious metals, you are buying security, and you can’t put a price on security. If you are buying silver or gold to sell tomorrow, you are buying it for the wrong reason. You should instead consider futures or mining stocks. Physical gold and silver are a long-term play- and they always have been.

You are better off just buying a little at a time. Dollar cost averaging is a great strategy for precious metals. Make it a habit to invest an amount you have allocated for precious metals weekly, monthly, or quarterly, regardless of current metal prices.

Q: What would you say to someone new to precious metals who is apprehensive about high prices?

J: I say buy it and never look at the spot price again. Otherwise, you’ll drive yourself mad questioning whether to buy or sell. Personally, I bought silver when it was $48/oz in the early 2010s, and from there it dropped to around $13/oz. I didn’t care because, in the long run, I would know I would be in a good place. And if you asked me if I sold when it hit over $100, I’ll tell you: I did not. I don’t care that it’s gone above $100/oz; for me, silver is about stability and security. It’s something to fall back on, something that can’t be taken away from you.

Q: If you were to add to your precious metal holdings today, what would you buy- gold or silver?

J: YES, and that is it. I would buy today. You could argue strongly for both. Silver has a use case that gold does not have. Gold is typically used for jewelry and currency. There is a small amount that goes into manufacturing, but it’s small compared to silver. Silver is a commodity used for everything. So, really, it depends on YOU. Do you want something that has demand but is more volatile, like silver, or something a little more stable that moves a bit slower, like gold? Do you want silver that can take up three bedrooms in your home, or do you want gold for the same cost that fits in a cabinet in your kitchen? I mean, it sometimes just comes down to real estate and considering what your play is. But, either way, you are buying security.

Q: What was last week like for you?

J: I don’t remember. All I can say is it was fun, miserable, annoying, awesome, spectacular, and rotten all at the same time. But here’s the thing: at the end of the day, it’s about our clients who choose to partner with us to provide safety and security through the power of precious metals. We would not be here for over 50 years if it weren’t for their trust and loyalty, and that speaks volumes to us. Our commitment, during the crazy times and the calm times, is to get people the most metal for the fewest dollars, and I would not have it any other way.

 

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