Chilliwack – Bill Blog | September 02, 2025
I hope you have had a wonderful summer, as we have, with a vacation and time with family and friends. Here we are again in September, and I wanted to provide a critical update on precious metals. Next month, I will provide guidance for those who are considering retirement. I will share with you several key considerations and facts before you make this important decision. But, for now, let’s look at gold and silver.
Gold and silver have been the best asset class since 2000 (doubling the S&P 500 returns), surpassing all asset classes, excluding Bitcoin and several cryptocurrencies. To provide perspective, both gold and silver provided a 47% return in 2024, and in 2025, both metals continue to shine. Silver over the past year is up 45% and Gold 39.50%. There is a good potential that Gold will end the year at or above $4000US, and Silver may hit $50US. The question is, why are both metals appreciating at these explosive returns?
Major central banks continue to purchase gold at a record pace not seen since the 1960s. Central banks now have more gold in reserves than U.S. Treasuries. What is that telling us?
Russia is believed to have about 12,000 tonnes of Gold in reserves, and China has over 50,000 tonnes (these numbers are estimates, as both countries do not fully report its reserves). Other major countries have followed suit, and the USA has been quietly accumulating at a record pace in 2025. Sadly, Canada is not even on the radar!
Russia announced earlier this year that they are now adding silver to its national reserves. It is believed China has done the same, and the latest to announce this is Saudi Arabia. This is huge news as silver is in its 5th year in a row of massive deficit. Approximately 800 million ounces of silver are produced annually, and the demand consistently has been over 1 billion ounces. It is no wonder silver continues to quickly rise in price, as this is a simple supply and demand issue. Not enough supply, price rises!
This year, US high-tech billionaire David Batement announced and showed his vault holdings, he had purchased 12 million ounces of silver. What does David know that most Canadian’s and Americans are completely oblivious to? Even major financial firms continue to hold about one-half a percent of their portfolios in precious metals. Historically, it has been 3 to 4%! Imagine what will happen to gold and silver prices if we return to historic norms. Yes, big firms are starting to wake up and add larger purchases of Gold/Silver EFTs.
So what do I expect to see by year’s end? Silver $50 plus US, and Gold is $4000 plus. Why? Mr. Powell will most likely start lowering rates on September 17th and possibly a time or two more by year’s end. This will weaken the US dollar, and more and more investors, institutions, Sovereigns, and Central Banks will purchase billions in gold and silver.
So keep your seat belt on, as I did the other day at the PNE while riding the old roller coaster. It was a wild ride, and so will the precious metals markets be for the foreseeable future. But, truthfully, it is only fun for those who have and continue to purchase gold and silver as a form of savings and an insurance policy against reckless spending of politicians who run massive deficits and create inflation.
If you need guidance to add to your position or want to get started, please reach out to me. I continue to provide a client discount, and we vault the metals with a world-class vault in the Fraser Valley. All metals audited, segregated in your own bin, allocated in your name, 100% insured and 100% liquid. Funds are usually in your account within 1 to 2 business days upon selling. Very reasonable storage rates. I can help clients with Cash purchases, RRSPs, and TFSA.
Bill Westmacott, Owner, BC Life Insurance Broker and Precious Metal Specialist
