Gold and Silver Pull Back — Smart Money Buys When Others Wait 
Why the Real Opportunity May Be Just Beginning
Gold and silver are moving — but not for the reasons you might think.
In the latest episode of The Gold Silver Show, Mike Maloney and Alan Hibbard break down what’s really driving the metals market today. From global physical demand to central bank accumulation and a wildly stretched gold-to-silver ratio, they say the “monetary reset” is already underway — and silver could be one of its biggest beneficiaries.
Global Demand Is Overpowering Paper Markets
Recent price action in gold and silver hasn’t come from U.S. traders — it’s been fueled by physical buying around the world.
Coin shops in Australia and across Asia are seeing lines out the door. The message? The paper trade in New York and London can only suppress physical demand for so long. As Mike puts it, “There comes a point where the paper game can’t continue overwhelming the real market.”
This global divergence between paper and physical markets is what he calls the “tell” — a sign that trust in fiat currencies is eroding and that investors worldwide are moving toward tangible value.
Silver: Volatile, Yes — but That’s the Point
Silver’s volatility scares short-term traders but excites disciplined investors. Mike reminds viewers that silver is a “roller coaster” — and that emotional control is part of successful investing.
“Most people chase price,” he says. “The key is to be a contrarian. It takes guts to buy when everyone else is fearful.”
Long term, that contrarian stance has paid off. Historically, silver’s sharp drawdowns have often preceded explosive upside moves once monetary demand surges. And that demand, Mike argues, is starting to re-emerge right now.
Central Banks Know What’s Coming
According to IMF data discussed in the show, gold now accounts for over 20% of global reserves — a level not seen in decades. Central banks can print currencies, Mike notes, “but they can’t print gold.”
That accumulation is a quiet but powerful signal that major institutions are preparing for the same risks private investors fear: inflation, debt expansion, and fiat-currency debasement.
As Alan points out, gold’s total market capitalization recently surpassed $30 trillion, a record high. Far from being a bubble, Mike sees it as gold merely accounting for decades of currency creation — something he predicted in his 2008 book, Guide to Investing in Gold & Silver.
The Gold-Silver Ratio Signals a Major Opportunity
The gold-to-silver ratio — currently hovering near 85:1 — remains one of the most extreme in modern history. At previous cycle lows, that ratio compressed to around 14:1, implying that silver could outperform gold by as much as 6x if history repeats.
Alan illustrates this reversion potential with charts showing symmetry in past wealth cycles. Silver’s relative undervaluation, combined with constrained mine supply (much of it a by-product of base-metal mining), creates what Mike calls “a coiled spring” effect.
“When the world rushes to silver for protection,” he says, “supply disappears just as demand explodes.”
Inflation Math Still Favors Silver
Even after its 2024–2025 rally, silver remains far below its inflation-adjusted peak. In 1980, silver hit $52.50/oz — equivalent to roughly $218/oz today using official CPI data. Adjusting for pre-1990s inflation methods, the real figure could exceed $1,000/oz.
In other words, silver would need to multiply several times over just to match its previous high in real terms — a stark reminder that, despite short-term swings, the long-term opportunity may still lie ahead.
“Gradually, Then Suddenly” — The Reset in Motion
Mike closes with a quote often attributed to Hemingway: “How do you go bankrupt? Gradually, then suddenly.”
That, he says, is how monetary resets happen. Slow at first, then all at once — and by the time the public recognizes it, it’s too late to insure against it.
“Once your house is on fire,” he warns, “it’s too late to apply for insurance.” For Mike, gold and silver remain that insurance — tangible assets with no counterparty risk, built to survive whatever comes next.
👉 Watch the full episode — “Is Silver Poised to Make a Massive Reversion?” — on YouTube now.
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People Also Ask
What does the gold-silver ratio mean for investors in 2025?
The gold-silver ratio measures how many ounces of silver it takes to buy one ounce of gold. When the ratio is high — around 85:1, as it is now — silver is historically undervalued. Mike Maloney explains in his latest video why this extreme reading could signal a powerful reversion ahead.
Why is silver considered undervalued compared to gold?
Silver has lagged behind gold even as global demand and central-bank gold buying surge. With supply constrained and two-thirds of silver production tied to base-metal mining, a slowdown could tighten supply just as monetary demand rises. Mike calls this setup “a coiled spring” — where prices can leap higher suddenly.
How high could silver go if it returned to its inflation-adjusted peak?
Silver’s 1980 high of $52.50 per ounce equals roughly $218 today using official inflation data — or even higher using pre-1990s metrics. That means silver would need to quadruple or more just to revisit its former inflation-adjusted high. Watch Mike Maloney’s full explanation in “Is Silver Poised to Make a Massive Reversion?”.
What’s driving global demand for gold and silver right now?
According to Mike and Alan, it’s not U.S. traders but real, physical buying around the world — from India’s new banking reforms to coin shops in Australia selling out. Central banks have also raised gold to over 20% of global reserves, signaling deep mistrust in fiat currencies.
What does Mike Maloney mean by a “monetary reset”?
Mike describes the coming monetary reset as a slow-building shift where paper money loses credibility and tangible assets like gold and silver regain dominance — happening “gradually, then suddenly.” He warns that investors should secure their “insurance” before the rush begins. See his full discussion and charts in the complete video here.
