Mid-Year Precious Metals Market Update

With a heat dome spreading across much of America this summer, it evokes images of kids running through sprinklers, days at the neighborhood pool, backyard barbecues, and fireflies at dusk. As we hit the halfway mark of 2025, it’s an opportune time to check in on the financial markets, key drivers for precious metals performance, and your portfolio.

The first six months of 2025 have been a whirlwind, marked by a fast-paced news cycle that began with the Inauguration of President Donald Trump for his second term in late January. So much has happened that we couldn’t possibly cover it all here, but we’ll touch on key developments impacting the precious metals and stock markets in the first half of the year.

Market Performance Since the Start of 2025

Gold +23%

Platinum +45%

Silver +21%

S&P +3.55%

International Stocks: MSCI ACWI ex-USA Index +16.28%

1-month Treasury Note Yield: 4.21%

5-year Treasury Note Yield: 3.84%

30-year Fixed Mortgage Rate: 6.82%

A few things jump right out.

• Precious metals are the best-performing asset class in 2025. Gold rocketed to a new record high above $3,400 an ounce in April and is trading quietly this summer above the $3,300 level.
• Foreign stocks are outperforming U.S. stocks by a significant amount.
• Mortgage rates remain higher than the low rates of the pandemic and the 2020-2021 era. In January 2021, 30-year mortgages hit a low at 2.65%. The high rates have priced many homebuyers out of the market for now.

The Big Picture

Liberation Day tariffs, geopolitical wars, a U.S. debt downgrade, and climbing national debt have been strong headwinds for the U.S. stock market this year and positive for precious metals. Investors flocked to the safety and security of gold, platinum, and silver amid the mounting uncertainties on many fronts, both military and economic.

Geopolitics Sends Investors Rushing to Precious Metals

Military action ramped up in June as the United States joined Israel with Operation Midnight Hammer, which involved U.S. Air Force B-2 stealth bombers dropping so-called “bunker buster” bombs on an Iranian nuclear site. Israel continues its war against Hamas in the Gaza Strip, and Russia continues its war in Ukraine.

While gold generally led the precious metals complex higher in the first half of the year, in June, both silver and platinum vaulted sharply higher. Precious metals investors saw opportunities to accumulate precious metals at bargain prices, and they swooped in. Silver climbed to a 13-year high, above the $37 an ounce level, while platinum climbed to $1,363.

Tariff Uncertainty

The stock market is eyeing a July 8 tariff deadline, which ends the 90-day pause on most of the steep Liberation Day tariffs if trade deals haven’t been set. Tariffs could climb as high as 50% against some nations.  While the Administration is said to be negotiating with China, the European Union, Canada, Mexico, and more, only one trade deal has been finalized thus far, and that is with the United Kingdom. Investors flooded into precious metals throughout the spring months as uncertainty over the impact of tariffs on the economy sent stocks spiraling lower.

America Lost Its Last “AAA” Credit Rating Due to Rising Debt

In May, Moody’s stripped the United States of its last “AAA” credit rating. This was another warning signal that Washington D.C. policymakers have failed to address the unsustainable government debt problem our nation faces.  Global investors fear that America is getting close to a point where our debt isn’t affordable anymore.

The news underscored the stability and security of gold in a world racked with government debt. For gold investors, this confirms that gold is in a long-term structural bull market. Analysts at JP Morgan issued a new research note in late spring outlining a scenario that could take gold 80% higher to $6,000 by 2029. They said this could occur if just 0.5% of U.S. assets held by foreign investors were reallocated to gold. Weak demand at Treasury auctions this spring already revealed tepid demand from foreign investors to buy new Treasuries.

Recommendations for Precious Metals Investors

In the dog days of summer, financial markets are relatively stable and quiet, for now. That makes it the perfect time to re-evaluate your portfolio, your asset allocations, and how much wealth protection you need for what may lie ahead. It’s a perfect time to trim your allocation to the stock market and funnel those funds to the safety of physical gold, silver, and platinum.

There is a step you can take to protect, preserve, and even grow your wealth, and that is to increase your allocation to physical gold.

If you aren’t sure what the appropriate amount is for your risk tolerance level, our Blanchard portfolio managers are here to help. Give us a call today at 1-800-880-4653 for a complimentary portfolio review with personalized recommendations to help you protect and grow your wealth. Precious metals are beating everything right now. We are in the midst of a historic gold run. Gold $4,000 will be here faster than you think, and once markets start moving again, you’ll have missed the chance to accumulate physical gold below $3,400 an ounce. It’s easy to add more wealth protection to your life. Why not call us today?