Gold, silver surge amid Trump Greenland crisis: 'The debasement trade is on fire'

Group 1: Precious Metals Market Dynamics - Gold futures have surpassed $4,700 per ounce and silver has reached $95 per ounce, marking a series of record highs driven by geopolitical tensions and tariff threats from the U.S. [1] - The surge in precious metals is attributed to strong central bank demand, concerns over Federal Reserve independence, increased fiscal spending, and geopolitical issues such as U.S. intervention in Venezuela and tensions with Iran [2] - The recent rally in silver prices, from the low-$20 range last year to above $95, is linked to fears that global supply cannot meet industrial demand [3] Group 2: Supply and Demand Challenges - The mining industry is facing a significant supply gap, with a current deficit of around 200 million ounces of silver, despite companies like Vizsla Copper planning to produce 20 million ounces annually [5] - A structural deficit in the silver market has persisted for five years, indicating long-term supply challenges [5] - China has restricted silver exports to prioritize domestic supply for solar panel production, further exacerbating the supply constraints [6] Group 3: Market Risks and Considerations - There are concerns that high silver prices may lead to industrial demand destruction, as manufacturers may reduce purchases or seek alternatives due to increased input costs [7] - The impact of price increases on demand may not be immediate, suggesting a lag in the market's response to rising costs [7]