Gold and silver are both up over 10% so far in 2025, outpacing faltering stocks for the second year straight. Jim Puplava welcomed Keith Barron, a 42-year mining veteran and CEO of Aurania Resources, to Financial Sense Newshour to decode this rally. With gold nearing $3,000 and silver nearing $34, Barron’s seasoned perspective, forged through decades with top miners and his own exploration successes, shines a light on the forces at play. From central bank hoarding to silver’s untapped potential and the mining industry’s hurdles—including the staggering roughly 30 years it takes to open a mine in the U.S. from discovery to production—here’s Barron’s take.
Listen to the full audio interview and discussion here: Keith Barron on America's Mining Problem and Revaluing US Gold Reserves.
Gold’s Inflation Shield Shines Again
Why is gold thriving against economic headwinds? Barron harks back to history: “I’m old enough to remember when inflation showed its ugly head and people ran to gold for security.” Today, it’s global. “Maybe not… Americans buying gold, but everybody else,” he says. With gold near all-time highs—“way over 4,000 per ounce in Canadian dollars”—it’s a sight he never expected: “Really quite something that I didn’t think I’d see in my lifetime.” Central banks and foreign investors, wary of U.S. debt, are key drivers.
Central Banks and the Ultimate Currency
BRICS nations—Brazil, Russia, India, China—are stockpiling gold, a trend Barron ties to a shifting reserve landscape. “Gold is the ultimate currency and has been for thousands of years,” he asserts. Puplava notes: unlike the U.S.’s open markets, China’s closed system nudges partners toward gold. “The Chinese… have been dumping Treasuries and buying gold,” Barron says, a move spanning “the last two, three years” that’s “propelled the price.” With U.S. debt ballooning, he warns, “If… America can’t sell its Treasuries anymore… it’s game over”—a reality stoking gold’s ascent.
Trump’s Gold Gambit
Could U.S. policy ignite this further? Barron eyes a potential move to monetize or revalue 263 million ounces of U.S. gold, currently valued at a mere $42 an ounce since the 1970s. At $2,950, that’s $775 billion; at $5,000, it’s $1.3 trillion. “It doesn’t make sense for it to be at $42,” he says, predicting a revaluation has to happen eventually—perhaps at $4,000 or $5,000 an ounce. “I think it’s going to push through 3,000… almost any day now.” Trump’s “outside-the-box thinking” could leverage this hoard, easing debt woes—though Barron doubts it’ll erase them—while turbocharging gold’s rally.
Mining’s Risky Frontier
Barron’s 42 years reveal mining’s gauntlet. “There’s always political risk,” he says, citing Burkina Faso, Mali, Gabon, and Panama, where miners faced seizures or forced renegotiations. Panama’s First Quantum lost its copper mine to “groundless” claims—“politicians cratered.” Geological risk looms too: “Drill it and kill it,” he quips—most deposits flop. In the U.S., NIMBYism (Not in My Back Yard) stretches timelines: “It’s 28 years to get a mine in operation from the time it’s discovered.”
Miners’ High-Grade Hangover
A decade of flat gold prices pushed miners like Newmont and Barrick to “high grade” their richest ores, Barron explains. “They’re not replacing their reserves,” he says, akin to oil giants buying rather than drilling. The recent $7.7 billion Equinox-Calibre merger—forming a top-four player—shows the trend. “It’s difficult to grow reserves organically,” he notes, especially with U.S. mines taking 28 years from discovery to production. Majors shed geologists, snapping up juniors instead. “They’re… gobbling up… smaller companies,” he says, boosting reserves via M&A, not exploration.
Silver’s Explosive Upside
Silver, at $32, trails gold’s $2,950, pushing the gold-silver ratio near 90:1—far from its 50:1 decade norm. Barron’s bullish: “It’s poised… to push through 50,” he believes. At $4,000 gold and 30:1, silver hits $133, according to his view—a big leap from $32. “Silver is… the poor man’s gold,” he says, spotlighting India’s appetite and Costco’s sellouts. With 70% industrial demand and 200-million-ounce deficits yearly, “it could move… much more than the gold price… in… percentages.” Puplava adds: “They can’t keep it in stock.”
Gold’s Global Shuffle
Gold’s shifting—London to New York, then off Comex. “This movement… started before Trump was… elected,” Barron says. Tariffs loom—“people… moving gold… to avoid those”—though he’s unsure. BRICS hoarding reflects U.S. credit fears: “The deficit just keeps climbing… if… the American currency turns turtle… they’re going to be in pretty good shape.” Trump’s wild plans—Gaza as “Las Vegas,” buying Greenland—could spike gold even higher.
Miners: Cash Cows Ignored
Despite gold’s rally, miners lag. “These companies are… throwing off money,” Barron marvels, yet “nobody pays attention.” High costs—labor, fuel—bite, but $90-per-gram gold versus $40-$50 mining costs means profits soar. “A gram per ton becomes worthwhile,” he says, reviving low-grade mines—though U.S. delays (28-29 years from discovery to production) stall gains. Dividends rise, acquisitions loom—Equinox could be next—but “we’re behind the curve” on new finds.
Catch the Wave with Keith Barron
Barron’s wisdom shines at StraightTalkOnMining.com—commentary since 2001. His Aurania Resources (TSXV: ARU) hunts the next strike; reach him at keith[at]aurania[dot]com or aurania.com. “Anybody who doesn’t pay attention… is going to be kicking themselves,” he warns. With gold approaching $3,000 and silver close to $34, where do you stand on this metals moment?
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Read more: From $3,000 Gold to $50 Silver: Jeff Christian Maps the Bull Market in Metals
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