Silver Price Could Reach $50 – Is Gold Being Re-Monetized?

Silver could reach $50 this summer as gold is being re-monetized and more countries accelerate their accumulation of the precious metal. This is the latest insight from Florian Grummes, Managing Director of Midas Touch Consulting, shared during an interview with Kitco News.

Gold Re-Monetization – A New Investment Trend Among Nations

According to Florian Grummes, gold is regaining its role as a monetary asset, with many nations ramping up their reserves. He cited Azerbaijan’s purchase of nearly 19 tonnes of gold in Q1 2025, bringing its total reserves to over 165 tonnes. Grummes views this as just the beginning of a much broader trend: “I believe this process of gold re-monetization is only in its early stages. This trend has a long way to go,” he said. Over the past week, gold prices surged to a record high of $3,509/oz, before pulling back below $3,300/oz due to profit-taking. However, Grummes believes this correction is temporary, and the longer-term uptrend remains intact.

Gold Price Forecast: Further Increases Expected

Grummes emphasized that gold is currently overbought across all timeframes, but he doesn’t believe the market has reached a major top. He forecasts $3,000/oz as a strong support level in case of further declines. “I still maintain my long-term price target of $9,000/oz, just as I stated in my first interview with Kitco,” he added.

Silver Could Hit $50

A key highlight from Grummes’ interview is his prediction that silver could reach $40 to $50 by summer, and that this would be just the beginning. “Today was the first time silver showed real strength on its own, apart from gold. That’s a very important signal, and it could continue significantly over the coming weeks,” said Grummes. He also argued that silver is drastically undervalued, especially considering the gold/silver ratio, which currently stands above 100:1, compared to the natural occurrence ratio of about 10:1, and a production ratio of 7:1.

What Could Drive Silver Prices Above $50?

Grummes believes market momentum could be the force that drives silver past the $50 mark—and possibly even toward $90 to $100, if market sentiment remains bullish. “If the market pushes silver to $50, it may very well break through and continue higher.”

In addition to physical gold and silver, Grummes highlighted mining stocks as a massively undervalued sector. He mentioned First Mining Gold and Silver Tiger Metals as companies with substantial resource potential and room for growth: “They’re practically printing money every day,” he remarked.

Grummes also noted that retail investor participation remains relatively low, suggesting there is still plenty of upside potential in the precious metals market. “I haven’t seen long lines of people in front of gold dealers. That tells me we haven’t reached a major top yet.”

With gold being re-monetized, China pushing to internationalize the yuan with gold-backed mechanisms, and ETFs continuing to buy into gold, both gold and silver are positioned for strong upward moves. In particular, given that silver remains undervalued relative to gold, experts like Florian Grummes believe the silver price could reach $50 in the near future.