Friday Recap (8/29/2025)

AU: $3446 ($3370 - One Week Ago)

AG: $39.61 (38.86)

HUI: 515 (489)

DXY: 97.8 (97.5)

S&P: 6460 (6466)

10-Yr: 4.21% (4.25%)

Oil: $64 (63)

Gold has been leading all year. In August, and especially today, it revealed its strength. The big question is why? I think the answer is obvious: the US economy is not as strong as it appears. Not only is the US economy weak, but it is headed into an extreme period of uncertainty when the debt bubble is likely to burst. If you watch TV or listen to financial commentators who are directly tied to investing, then you might think the economy is stable. It is not, and gold is the siren going off.

Silver has joined the party, almost closing above $40 (spot) today. Little Sis (silver) does not come running until the coast is clear. She is very skittish, just like a cat. She waits patiently and then pounces. August was the month that gold and silver both said, game on. Sure, we will get a correction at some point, but it will be short-lived, and they will both bounce and come roaring back. Silver is ready to rip to an ATH. My target for silver this year is $45 to $65. For gold, it is $3400, which we already reached.

GDXJ is now up 87% YTD. Agnico-Eagle is up 84% YTD. Newmont is up 99% YTD (up 163% off its 2024 low). The miners have come to life. Guess what? It's just starting. The HUI is at 515 and heading to 1500 (at $5K gold). Silver hasn't even reached $40. We have a long way to go. The rip from $40 to $50 silver is going to create baggers (up 100%) in all of the silver miners, which all remain cheap. Many will be up 150% from $40 to $50. And the leverage increases from $50 to $60.

I have been saying for months and months, the only chart that matters is the S&P 500. We can't reach 1,500 HUI unless we have a fear trade. A fear trade is when investors are afraid to own the S&P 500. That's coming. That's why gold was up today and the stock market was down. Gold and silver today were sniffing out the problems that are coming.

We don't need the S&P to crash (but it will). We only need it to stop going up (for about 6 months in a row). Historically, the stock market has experienced prolonged bear markets. They are actually quite common (ask AI). One is coming, and gold/silver/miners will benefit. The best correlation is 2002 to 2008. Look it up. The stock market was dead, and the gold miners were flying.