On the Money Metals Podcast, market strategist Gregory T. Weldon said his view on precious metals has turned bullish again after a correction, maintaining that the longer-term uptrend remains intact. He had expected silver to fall towards $61 an ounce, with a downside scenario near $54, after exiting between $96 and $98 when spot traded above $100. With silver back above $60, he cited renewed scope to add physical holdings, and referenced one silver-share position that returned 167% after earlier being up as much as 217% before profits were taken. He also pointed to a breakout above $36.50 as a structural marker, and set a longer-run target of about $326 an ounce over five to seven years.
The discussion widened to market risk, inflation and geopolitics. Weldon characterised artificial intelligence as a bubble, arguing that heavy spending on infrastructure, semiconductors and data centres is nearing saturation, while higher long-term yields were framed as a signal of slowing growth and fiscal strain that could ultimately push the Federal Reserve back towards quantitative easing. On inflation, he cited low snowpack in the western US, declining fog moisture in Northern California, and NOAA’s call for a severe El Niño lasting into April next year, with potential effects on sugar in Thailand and coffee in Brazil and Vietnam; he also described crude reserves as historically low. He added that China, Russia and Vietnam control more than 80% of global rare earth resources, reinforcing the strategic case for gold alongside rising US debt and persistent inflation.
Precious Metals, Derivatives, and Market Positioning
We believe derivative traders should immediately position for a strong rebound in precious metals, especially with silver stabilizing above the $60 mark. After a sharp correction from its previous highs near $100, silver’s underlying supply deficit makes long call options highly attractive. We recommend accumulating long-term LEAPs or bull call spreads to capture the next leg of this secular bull market.
AI, Weather, Energy, and Monetary Policy Risks
We are also closely watching the massive capital expenditures in the artificial intelligence sector, which have pushed the tech industry to a tipping point. With major tech firms spending over $200 billion annually on AI infrastructure, we expect a looming saturation point to trigger a sharp correction in equities. Traders should look to buy put options on major semiconductor and technology ETFs to hedge against this imminent downside risk.
Severe weather patterns, including the forecasted El Niño persisting into April 2027, are set to severely disrupt global agricultural output. This weather disruption, combined with U.S. crude oil inventories hovering near historic lows, creates a perfect storm for agricultural and energy derivatives. We suggest taking long positions in sugar, coffee, and crude oil futures as supply tightness drives prices higher in the coming weeks.
With the U.S. national debt rapidly approaching $40 trillion, the Federal Reserve will likely find it impossible to maintain its restrictive monetary policy for much longer. Any sudden economic slowdown will force a return to monetary stimulus, which historically causes bond yields to drop and precious metals to surge. Derivative traders should position for this shift by utilizing interest rate swaps or long bond futures to capitalize on the eventual pivot.
