--- title: "Price Shock: What’s Really Driving Gold’s Historic Rally" site: "Monex Precious Metals" domain: "https://www.monex.com/" type: "Page" last_updated: "April 22, 2025" canonical_url: "https://www.monex.com/videos/price-shock-whats-really-driving-golds-historic-rally/" markdown_url: "https://www.monex.com/videos/price-shock-whats-really-driving-golds-historic-rally.md" --- # Price Shock: What’s Really Driving Gold’s Historic Rally Sean Brazney and Jeffrey Christian · April 21, 2025 [Watch Video](https://player.vimeo.com/video/1077387687) ## Video Transcript **Jeffrey Christian:**It has caused the gold price to rise $700, since the start of the year. Although that’s $700, it’s not quite $700, it’s $680 today from January 1st, half of that has been in the last five days, and I think that one of the things you’re seeing is price shock. People saying, “Okay, I should have bought at $3,100 five days ago. I’m not going to chase this price higher. I’m going to wait until the price backs off.” So, I think some of it is sticker shock, but part of it is, I think, paralysis just from the absolutely massive amount of political and economic uncertainty and anxiety that you’re seeing, not only with investors around the world… in the United States, but really around the world. **Sean Brazney:** You know, looking at gold, how can we not talk about gold today? Up what seems like $100 a day. I don’t know of a time where we’ve seen daily moves in the gold market like this before. You know, I try to compare this to what I see in the physical buying side, and honestly, I don’t know that we’ve seen as much investor demand on the physical side, as what I see happening in the paper market right now, but can you give us some data as to why we’re seeing this kind of a significant move in gold? **Jeffrey Christian:** Well, I think you’re right. One of the things that we’ve seen, is there has been a pulling back in the physical buying, especially on the retail investor level. I think, there’s a tremendous amount of anxiety and uncertainty about the market, and about the state of the economy, and the political state of the world, and that has been stimulating investment demand and it continues to stimulate investment demand in some markets, but it has caused the gold price to rise $700 since the start of the year. Although that’s $700, it’s not quite $700, it’s $680 today from January 1st, half of that has been in the last five days, and I think that one of the things you’re seeing is price shock. People saying, “OK, I should have bought at $3,100 five days ago. I’m not going to chase this price higher. I’m going to wait until the price backs off.“ So, I think some of it is sticker shock, but part of it is, I think, paralysis just from the absolutely massive amount of political and economic uncertainty and anxiety that you’re seeing not only with investors around the world… in the United States, but really around the world. Now, one of the things… one of the places where we’re seeing demand are institutional investors in Europe and in other parts of the world. We’ve seen this thing three months ago; all these people were talking about the arbitrage between London and New York and the massive amount of gold and silver that was coming into New York from London. The arbitrage has reversed for gold now, and you have gold being shipped back to London, and that gold is being shipped back not at a loss, but at a profit, because the arbitrage, the spread has reversed, and you can pick up four or five dollars an ounce by moving your gold from New York back to London. That reflects investment demand in London, in the London market from larger investors and institutional investors around the world. **Sean Brazney:** That investor demand, regardless of if it’s in London, should add some price stability to the price at some point here, shouldn’t it? **Jeffrey Christian:** I think it will. One of the things that, we’re long term bullish on gold. We think the price has a lot more to go over the next year or two or three, but the concern is having risen $350 dollars in the last five days, $700 dollars in the last three and a half months, when does the price come off? When do markets sort of find some… I want to say stability, but markets will become sort of accustomed to the political drama that’s driving stocks down, bond prices down, interest rates higher, gold prices and silver prices higher. **Sean Brazney:** It’s hard not to link silver to gold, even for me. When you see a price move like this in gold and you look at silver, and as monetary metals, historically, you kind of relate them together. I know a lot of investors I talk to relate them and kind of in the same conversation as to why isn’t silver up or or is silver going to catch up. In regards to silver and its relationship to gold, what do you foresee maybe here in the short term as some potential in silver right now? **Jeffrey Christian:** Part of it has to do with something that Monex, I think, knows better than perhaps anybody else in the country. Silver is much more a North American investment. If you look at the dispersion of investment demand, there’s a lot of silver that’s bought in the United States and a lot that’s US investors, but a lot of its foreign investors who want their silver held here, rather than any place else. Then the other large market for silver investment demand is India, but the rupee has fallen, so that we have a higher silver price, because it is $33 dollars an ounce today, the higher silver price, the lower rupee, the higher dollar has made silver very expensive there. So, silver is a North American investment phenomenon and gold is a much more universal phenomenon, investment phenomenon. People around the world first flock to gold. They’ll come to silver later, but gold is the first thing they run to when they start seeing the bond market behave the way it has in the last two weeks. **Sean Brazney:** Call Monex today, talk to an account representative and get your free report today. Thanks for being with us today, Jeffrey.