Every Dog Has its Day. Manic Metals Report 06/05/2025

The old saying is that every dog has its day and today the dog of the precious metal silver is having that day. This morning the undervalued silver, the dog of the precious metals, decided to make a run at its historical destiny.
Silver is trying to catch up with gold that has surged far beyond gold record highs and has put the gold silver ratio on the dust heap of history.
Silver has exhibited a rounding bottom breakout, indicating it may be time for silver to return to its historical range. This could potentially lead to silver surging to previous record highs or perhaps even new record highs as it attempts to catch up with gold. On a daily basis, however, it is gold that appears to be attempting to catch up with silver. Gold has been unusually lagging silver, but today’s movement in silver has resulted in a slight upward movement in gold. While gold might still be poised for further increases, silver likely has additional upward price potential. It seems both metals will continue to move higher, with silver leading the way.
This surge up on silver has caused a spike up in platinum and that is counter seasonal to what normally happens this time of year platinum and Palladium are both looking very solid with Palladium making its upside move not only because silver went higher but also because if you look at the potential geopolitical risks with sanctions on China and Russia that’s keeping them Palladium market looking very attractive at these price levels.
The US has increased tariffs on steel and aluminum from 25% to 50% as of yesterday. This move pleases US steel producers but not Canada, who insists they share the same problem with steel and aluminum dumping from countries like China. Despite this, the futures trade is becoming more attractive due to increased volatility, marking a golden age for metals trading. Both risks and profit potential are high, so if you manage your risk well, now could be the best time to trade precious and industrial metals.
Gold Hub.org reports that gold ETF flows turned negative in May, marking the first monthly withdrawal of funds since last November. It is possible that these funds were redirected to silver.
Copper is also rising this morning as the prices are approaching $0.05 per pound on the Comex and close to $9700 per ton on the London Metal Exchange recently we’ve seen copper stockpiles falling pretty dramatically with the drop of 196,000 tons since March of 2025 London Metal Exchange inventories fell to 75,000 tons after 10 consecutive days of declines which is signaling a market that is extremely tight.
We also have continuing production issues with Glencore refinery in Chile that halted shipments last month and other major producers have seen reduced output
and despite the concerns about China the world’s biggest copper consumer has a shortage of copper concentrates and scrap and that is partly due to the trade war with the United States.
There is a structural shortage of copper, and the price of copper has the potential to double. The question revolves around when this increase might occur rather than if it will happen.
FED Fund futures now predict a 100% chance of a federal interest rate cut in September. This potential rate cut could boost metals by lowering the dollar’s value and increasing demand for hard assets, contributing to the bullish trend in metals markets.It may be time to open your account! Call me at 888-264-5665 or email me at pflynn@pricegroup.com