Paul Wong is managing partner and market strategist at Sprott Inc., and has more than 37 years of investment industry experience, specializing in investment analysis for natural resources.
What are the drivers behind the run-up in gold and silver prices?
The powerful rally in gold and silver reflects a convergence of structural macro forces. A major driver is the entrenchment of fiscal dominance, in which governments prioritize debt sustainability over inflation control, leading to persistent monetary debasement that erodes the real value of cash and bonds.
Concurrently, deglobalization and geopolitical fragmentation have elevated gold to the status of a strategic asset. Trade weaponization, sanctions and the freezing of sovereign foreign exchange reserves shattered confidence in fiat neutrality, reinforcing gold’s role as a non-sovereign, nonliability asset. These forces are now being priced structurally into gold and, by extension, into othe
