Silver has finally broken through a significant price level. Could this be the beginning of a breakout that sends silver to new record highs?
In this episode of the Money Metals Midweek Memo, host Mike Maharrey makes the case that this is the start of the much-anticipated silver bull run, where the white metal finally catches up with gold. And even if it’s not, silver is still poised for a breakout.
Mike also talks about the tax cut/spending bill working its way through Congress in light of the budget deficits and national debt. He takes on the idea that the tax cuts will “pay for themselves” and won’t increase the debt, arguing that this idea doesn’t stand up to historical scrutiny absent significant spending cuts.
“When is silver finally going to catch up with gold?”
Mike says that’s been the number one question he’s been asked over the last year or so.
“My answer has generally been, I don’t know. I don’t have a crystal ball. All I can tell you is that things are set up for a breakout.”
He points out that calling silver a laggard isn’t completely fair. It was up 20.5 percent in 2024. But since it remains well below record levels while gold has surged to multiple new highs, there is the perception that silver has underperformed.
Mike says that perception might be about to change.
“It looks like the much-anticipated and longed-for breakout might finally be happening! So far this year, silver is up another 53 percent!”
Mike highlights the recent rally, noting it has broken through a significant resistance level and that the gold-silver ratio has narrowed.
“The next strong resistance level is at $37.50. When silver breaks that, I don’t see much stopping it from running to $50.”
Mike notes that the technicals also look good for silver, pointing out that the charts show a very distinctive “cup and handle” pattern that often precedes a significant upward price move.
“This cup-and-handle pattern has played out over an extremely long timeframe. Historically, longer patterns portend bigger breakouts with a broader base signaling a bigger upside case. Gold followed a similar long-term pattern, resolving with a breakout to new all-time highs beginning in 2023.”
Then there are the supply and demand dynamics. Silver has been in a supply deficit for four years.
“All of this is very bullish for silver, and it will definitely be something to watch.”
Mike then pivots to the subject of the “Big Beautiful Bill” working its way through Congress and the potential impact on the national debt.
Supporters of the bill say tax cuts will spur economic growth and minimize the negative impact on the budget deficit. The CBO disagrees, projecting it will add $2.4 trillion to the budget deficits over the next decade.
Mike says the CBO forecast is an object lesson in politics.
“It’s easy to talk about cutting government spending and reining in deficits. DOGE was great at ferreting out waste. No doubt about it. Actually cutting spending and reining in deficits is a different story. Here’s the thing – it’s fun to talk about cutting spending. Everybody will nod and agree. But when you start talking about cutting specific programs, you start to get a lot of, ‘No, wait, not that program.’”
On top of that, politicians always find new ways to spend money.
Mike argues politicians are incentivized to spend — not cut.
“This is a fundamental economic principle – incentives matter. A lot. So, what are politicians trying to do? Get reelected. That’s job one. And since House members face voters every two years, they are pretty much ALWAYS in campaign mode. Senators get six years, but still, that’s not very long in the big scheme of things. That means politicians operate on a very short time horizon. Upsetting voters now by trying to fix something that may not cause any real problems for years does not work with election calculus. … What I’m driving at here is the fact that this bill will add to the deficit isn’t a shock. It’s business as usual.”
But what about the notion that the tax cuts will pay for themselves and could ultimately lower deficits thanks to economic growth?
“Recent history casts doubt on this claim.”
Mike breaks down the three major tax cuts since 1980 and shows that in every case, the revenue boost from economic growth was minimal and was offset by increased spending, leading to bigger deficits and more debt.
“The bottom line is we can’t depend on tax cuts and economic growth to solve the national debt problem. Even when revenues increase, spending has historically increased faster. Uncle Sam doesn’t have a revenue problem. It has a spending problem. Tax cuts alone can’t fix it. In other words, it is going to take substantial cuts to spending. There doesn’t seem to be much political will for that.”
That means investors need to be prepared for the ramifications of an ever-increasing national debt.
“I believe the debt is one of the most significant issues facing the U.S. economy and its financial system. Since they aren’t going to fix it, you’d better be prepared for the consequences. These include bond market meltdowns and surging price inflation.”
That means you want to have real money — gold and silver — to protect your wealth. And don’t forget that silver is still a bargain, even after the recent rally.
That leads to a call to action. Call 800-800-1865 and talk to a Money Metals precious metals specialist today.
Articles Mentioned in the Show
https://www.moneymetals.com/news/2025/06/10/screaming-silver-004115" rel=”noreferrer”>Screaming Silver
https://www.moneymetals.com/news/2024/03/25/what-is-the-gold-silver-ratio-why-should-we-pay-attention-to-it-003075" rel=”noreferrer”>What Is the Gold-Silver Ratio and Why Should We Pay Attention to It?
https://www.moneymetals.com/news/2025/06/06/silver-is-breaking-out-heres-what-you-need-to-know-004106" rel=”noreferrer”>Silver Is Breaking Out: Here’s What You Need to Know
https://www.moneymetals.com/news/2025/04/17/silver-market-records-fourth-straight-supply-deficit-amidst-record-industrial-demand-003994" rel=”noreferrer”>Silver Market Records Fourth Straight Supply Deficit Amidst Record Industrial Demand
https://www.moneymetals.com/podcasts/2025/05/28/does-the-national-debt-really-matter-004084" rel=”noreferrer”>Does the National Debt Really Matter?
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