Silver has added $3Tn in market cap by doubling in price in the past 3 months.

Gold has added ~$6Tn in that same timeframe (up +20%).

Could they keep going up?

Sure.

In fact, basic trend-following rules say that they're likely to keep going up.

But think about this...

People have been buying all this gold & silver, right?

Who do you think is selling it to them?

Every buyer, logically, requires a seller.

By definition, someone made money by selling these assets to new buyers at current market prices, due to the fact that the asset prices are at all-time highs.

Every investor in gold & silver who is selling to a new buyer is creating wealth.

For every $100 invested X years ago, it's now worth $100+Y today.

That Y amount is wealth creation being captured by sellers.

So this wealth creation is actually real and tangible.

That new wealth could be spent in the real economy.

It could also be invested into other assets.

It could wait on the sidelines in fiat before being reallocated back into gold & silver.

We don't know.

But what we do know is that wealth creation has occurred and that wealth creation is supportive of broader economic activity and higher levels of demand for all forms of spending, savings, and investment activity.

So while a lot of investors are interpreting gold & silver's price action as "OMG this means that cracks are in the system and we're about to experience a massive collapse", I actually see it as the exact opposite.

This price action in gold & silver might actually just keep the system afloat.

In the past year alone, gold's market cap is up $16Tn and silver's market cap is up $4Tn, so that's a total of $20Tn of wealth creation in a single year.

For context, the total GDP for the entire EU in 2024 was $19.4Tn.

You think that wealth creation is going to be negligible?

Study the wealth effect.

I hope this helps.

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