THE price of gold smashed through $4,400 an ounce for the first time ever this morning amid geopolitical uncertainty, expectations of further interest rate cuts stateside and, most pointedly, analysts say, growing concerns that the debt bubble of leveraged global economies could soon pop.
The price of silver also rose to within touching distance of $70, defining an exceptional year for both precious metals.
That’s the story in the markets. On the ground, a London-based pawnbroker and jeweller said soaring prices in 2025 have seen a “sharp” rise in people selling unwanted gold and silver items, cashing in while prices are at all-time highs.
Debt bubble goes pop
While a weaker dollar and the prospect of US interest rate cuts are two drivers of the gold price, Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said demand for the yellow metal is surging as markets hedge themselves against the threat of inflation.
She said: “Inflation could surge, not because growth is strong, but because authorities become the buyer of last resort to avert a broader collapse.
“When the debt bubble breaks, as Western economies globally are highly leveraged, they will ‘print, print, print’ to prop up banks and zombie firms — the very backdrop in which precious metals re-price.
“In that regard, what we’re seeing is not so much gold and silver strength but fiat currency weakness.
“When confidence in financial assets and policy stability starts to wobble, gold tends to respond first as the primary monetary metal.
‘Silver then amplifies the move because it sits at the intersection of monetary demand and industrial necessity, with a smaller, tighter market structure that can be overwhelmed quickly.”
Whether or not you should buy now, Wright continues, depends on your goals: “The decision to buy metal hinges on why you would own them. If the purpose is preservation then the case is not about timing a dip. If the purpose is a short-term trade, then caution is warranted.”
Silver soaring
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, a forex broker, said silver’s role in key growth sectors such as solar, EV (electric vehicles) and AI is a contributor to its stellar performance in 2025, but that there may be short-term price volatility before the metal eventually pushes on.
He said: “Silver is surging, being driven by acute supply tightness and booming industrial demand. A combination of plunging supply and explosive solar, EV and AI usage have created extreme delivery stress.
“However, after a near‑parabolic run, a pullback or choppy consolidation soon is more likely than a straight-line rise.
“Still, the medium-term outlook remains strongly bullish with many expecting a price of as high as $100 in 2026, driven by ongoing supply deficits and ETF (Exchange-Traded Fund) inflows.
“It’s starting to feel like this is the start of a major surge for silver, rather than isolated froth.”
Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said that for thousands of years gold has been seen as a store of value against politics and inflation, which partly explains its current outperformance given global uncertainty and a broader lack of faith in politics.
But he warned: “The price of metals like gold and silver can move quickly and so I’d be wary of buying in at this level although that’s not to say the price won’t go higher. It’s a sign that our global politics lack credibility.”
Star of the show
Jim Tannahill, Managing Director at London-based Suttons and Robertsons, a jeweller and pawnbroker, said that 2025 has been a busy year, with huge numbers of people selling the gold and silver lying around their homes.
He continued: “At over $4,400 an ounce, Gold is up around 70% on the year. Silver, on the other hand, is up 140% so it is certainly the star of the show right now.
“We’ve seen a sharp rise in people selling unwanted items, but also upwards of 130% increase in those using our pawnbroking service to borrow against their assets.
“For many of our customers, it means they can literally use the family silver to now borrow twice the amount we could offer at the start of the year.
“Whilst many still are taking advantage of high prices to sell unwanted or broken jewellery and silver pieces, we’re seeing a strong trend for holders of this asset class to leverage their gold and silver to unlock short-term cash without losing ownership so they can realise any future growth potential.
“Those who took that decision earlier this year will already have benefited from the exponential price growth.”
