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As global uncertainties mount – from trade tensions to supply chain vulnerabilities – precious metals continue to shine as reliable anchors of wealth. This week brought fresh evidence of their enduring appeal, with gold and silver not just holding value but reshaping financial landscapes with massive yearly gains to date. Let’s examine the key developments driving this rally through this past week.
Japan’s Gold Rush Overwhelms Retailers
In a stark illustration of safe-haven fervor, Japan’s largest gold retailer, Tanaka Precious Metals, has suspended sales of small bullion bars for at least a month. The move stems from unprecedented demand, fueled by gold’s climb to record highs, smashing $6000 CAD/oz for the first time in history and a weakening yen that amplifies its allure for local investors. Tanaka halted offerings of 5 gram gold bars– to 50-gram gold bars and small platinum pieces, as production struggles to match the influx of buyers seeking portable wealth amid economic jitters. Other dealers report similar sell-outs, with 50-gram bars vanishing from shelves as prices soar past ¥2 million for larger units. This isn’t mere speculation; it’s a cultural pivot toward tangible assets in a nation long wary of inflation and currency erosion. For observers, it signals broader Asian demand that could propel gold even higher. You can see below, that even as precious metals pullback at time of writing, Asian markets continue to move higher across both gold and silver.
India’s Silver Squeeze: “Not a Sliver Available”
Across the Pacific, India’s silver market faces acute strain, echoing a wry market quip: “not a sliver of silver available.” While physical shortages have plagued jewelers and industrial users for months, recent reports highlight empty vaults and delayed deliveries amid festive season buying and export curbs. India’s voracious appetite – accounting for nearly a quarter of global silver demand – clashes with stagnant mining output, exacerbating a structural deficit now in its fifth year. Importers scramble as prices spike, with spot silver breaching $52 USD/oz for the first time in history, getting as high as $54 USD/oz. This isn’t isolated; it’s a microcosm of silver’s dual role as both adornment and essential input for solar panels and electronics. As India’s green energy push accelerates along with jewellery demand increasing, expect tighter supplies to sustain upward pressure, underscoring silver’s industrial edge over gold.
Pentagon’s Strategic Stockpile: Silver Enters the Fold
The U.S. defense apparatus is doubling down on self-reliance, announcing plans to acquire up to $1 billion in critical minerals to fortify stockpiles against Chinese dominance. This spree, backed by the One Big Beautiful Bill Act’s $7.5 billion allocation, targets metals vital for weapons systems, radar, and EVs – aiming to buffer against disruptions in a tense geopolitical climate. Notably, silver joined the U.S. Geological Survey’s draft 2025 Critical Minerals List for the first time ever, alongside copper and potash, due to its irreplaceable role in semiconductors, batteries, and defense tech. Previously overlooked as a precious metal, silver’s addition reflects evolving risks: over 50% of global supply ties to by-product mining vulnerable to halts. The Pentagon’s current $1.3 billion hoard gets a timely boost, potentially injecting fresh demand and elevating silver’s strategic premium.
Market Caps Reshape the Hierarchy
Gold’s ascent reached a milestone this week, with its total market capitalization surpassing $40 trillion CAD after smashing multiple all-time highs above $6,000 CAD/oz. This eclipses Nvidia’s $6.1 trillion USD perch as the world’s top company by market cap. Silver, too, rocketed past $4 trillion CAD – edging out Bitcoin’s $2.9 trillion CAD and Amazon’s $3.2 trillion valuations – on the back of prices topping $76 CAD/oz. these aren’t fleeting bubbles; they’re validations of precious metals’ role as foundational stores of value, outpacing volatile equities and digital assets in an era of fiat doubt. Gold now rivals the combined worth of tech titans, while silver’s surge highlights its leveraged upside.
A Timely Reminder: Performance Speaks Volumes
In this charged environment, the numbers tell a compelling story. Silver has climbed over 70% year-to-date when measured in CAD, outpacing gold’s robust 60% gain, while the S&P 500 trails at a modest 11%. These aren’t abstract metrics – they reflect real-world hedging against inflation, policy shifts, and strife. As demand tightens and strategies evolve, precious metals offer not just preservation, but incredible potential. Consider positioning thoughtfully; history favors the prepared.
