Brian Conneely
Precious Metals Advisor
Brian Conneely is a Precious Metals Advisor at Scottsdale Bullion & Coin. He's worked in the precious metals market since 2009, trading commodities and futures before moving into physical gold & silver investing.
Wally Gordon
Precious Metals Advisor
Wally Gordon is a Precious Metals Advisor at Scottsdale Bullion & Coin. He’s an Army veteran who served in Iraq and entered the precious metals market because he believes in helping others build real wealth.
The constant output of seemingly contradictory headlines can make it challenging to get a sense of the economy’s direction. The whirlwind news cycle only worsens already low investor confidence.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisors Brian Conneely and Wally Gordon explain why the stock market is likely to trade higher despite recent dips, the role the money supply plays, and why silver is looking shinier than gold.
What’s going on with the stock market?
The stock market–a favored gauge of the economy’s overall health–has been struggling lately after coming off several all-time highs through 2024 and at the beginning of 2025. Experts blame widespread tariff uncertainty for the most recent retraction, where $4 trillion was wiped from the S&P 500 and Dow Jones. However, that doesn’t tell the entire story.
Before the pandemic, the Dow Jones Industrial Average sat around 29,500. Now, even after the recent correction, this stock index stands at around 42,500. That represents a staggering 44% gain in the last five years. In this context, the most recent dip doesn’t appear as drastic, but these relatively volatile price swings indicate an inflated money supply.
The Soaring Money Supply
The money supply refers to the total amount of cash or other easily spendable equivalents in the economy at any given time. This indicator directly impacts inflation, interest rates, and currency value, which, in turn, influence spending habits, investment behavior, asset evaluations, and economic growth.
Although the money supply constantly fluctuates from Federal Reserve tinkering, this crucial metric surged after record-setting pandemic-era spending. In February 2020, the M2 Money Supply was $15.47 trillion. By April 2022, that figure soared to $21.75 trillion. Although the money supply dipped slightly throughout 2023 and 2024, it has returned to near record-highs.
Overall, this describes a 44% increase, mirroring the stock market’s rise over the same period. This shows how flooding the economy with easy money can inflate stock prices. With the money supply rising again—M2 is up 3.9% year-over-year, the biggest jump since July 2022 and the 11th straight month of growth—the stock market is likely to keep being propped up.
“The government has been increasing the money supply at ever-increasing rates. The new administration is making some efforts to bring that down, but it’s going to be up and to the right for some time to come.” – Precious Metals Advisor Brian Conneely
Gold Soars to New Highs
While the stock market takes a breather, the gold spot price sets new all-time highs. The yellow metal cleared the $3,000 milestone and trades confidently above it. Since the beginning of the year, gold is up a respectable 16%. Over the past year, the metal has charted an even more impressive 40% gain.
Gold is going to be up and to the right because of the money supply and the interest in people protecting and saving their wealth.–
This broad forecast aligns with 2025 gold price predictions from several experts, many of whom are already raising their targets as gold’s rally shows no signs of slowing.
👉 Suggested Reading: $4,000 Gold?! These Experts Say It’s Within Reach
Silver Revs Its Engines
Silver spot prices may not be hitting new highs, but it’s closely following gold’s rally and has actually delivered a higher return so far this year, gaining around 20%. Despite these strong gains, silver is still widely considered “undervalued” compared to gold. The current gold-to-silver ratio hovers near historic highs, suggesting silver has plenty of room to run. Many experts believe it’s silver’s time to shine, especially as some investors look for a hedge against inflation at a lower price than gold.
“There will be a correction at some point, so having a position in silver is a wise move.”
Brian Conneely
Precious Metals Advisor
If you’d like to learn more about how silver can protect your portfolio, check out our free silver report: Silver, A Sleeping Giant?
⏳ IRA Contribution Deadline Is Almost Here
2024 IRA Contribution
Countdown
Just a quick reminder—time is running out to make your IRA contributions! If you’re eager to optimize your nest egg’s security while reducing your taxable income, now is the time to take action.
Looking for help in making your Precious Metals IRA contribution? Check out our step-by-step guide.
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If you have any questions about today’s topics or want to see us discuss something specific in a future The Gold Spot episode, please add them here.
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