Investing in Precious Metals with Mark Biller

Gold has been surging this year—but what’s behind the rise, and what should investors keep in mind before buying in?

Precious metals, such as gold and silver, have long fascinated investors, particularly in times of economic uncertainty. But are they wise investments for today? If so, how should we approach them? Mark Biller joins us today to talk about investing in precious metals.

Mark Biller is Executive Editor and Senior Portfolio Manager at Sound Mind Investing, an underwriter of Faith & Finance. 

The Surge in Gold and Silver

Gold’s remarkable rise has captured headlines again, now up over $4,000 an ounce—up from about $2,600 at the start of 2025. That’s a 50% gain this year on top of last year’s 26% surge. Silver has jumped even higher, up roughly 60%, while gold mining stocks have more than doubled.

What’s behind this stunning rally? Several key forces are at play. Global central banks have been buying gold aggressively, a trend that accelerated after the U.S. froze Russia’s dollar reserves in 2022. This event shook confidence in the U.S. dollar as a neutral reserve currency. Add in fears of currency debasement stemming from massive government spending since the COVID pandemic, and gold suddenly looks like a safer store of value.

As investors around the world look for stability, gold—the “4,000-year-old alternative currency”—is once again shining.

To understand today’s prices, it helps to look at history. Adjusted for inflation, gold recently surpassed its all-time high from January 1980. Silver, meanwhile, is nearing $50 an ounce—the peak it hit in both 1980 and 2011—but still lags behind those highs when adjusted for inflation.

These cycles remind investors that precious metals often move in waves—soaring during manias, then enduring long pullbacks. After its 1980 peak, silver prices dropped nearly 90%; after 2011, they fell by about 70%. Understanding those cycles helps set realistic expectations and temper “gold rush” enthusiasm.

Gold as a Store of Value

Unlike stocks or bonds, gold doesn’t produce income or dividends. That makes it tricky to value—but also unique. It’s not a productive asset; it’s a preservative one.

For centuries, an ounce of gold could buy a fine men’s suit. The same holds true today, illustrating its enduring purchasing power. Gold’s real role isn’t to generate profit—it’s to store value when currencies lose theirs.

Viewed this way, gold functions as an alternative currency to the world’s paper money systems. As inflation rises and confidence in traditional currencies wavers, gold’s relative stability stands out.

Gold’s appeal intensifies during uncertainty. Whether it’s inflation, war, or financial instability, investors turn to gold as a hedge. While Americans rarely consider regime changes, history is filled with nations where financial systems collapsed, and gold helped preserve wealth across transitions.

Even in less dramatic times, when governments respond to crises by printing more money, gold tends to perform well. As fear increases, so does the appetite for precious metals.

Gold, Silver, and Mining Stocks: Knowing the Difference

Each part of the precious metals market serves a different role:

• Gold is the foundation—a global monetary metal and store of value. It’s what central banks buy, and it tends to be more stable.
• Silver is both a monetary and an industrial metal. Its demand fluctuates more with the economy, primarily due to uses in electronics and solar panels. That makes it more volatile—but also more accessible to smaller investors.
• Mining Stocks are speculative. While they can surge when gold prices rise, they’re also risky. Over the long term, mining stocks have underperformed, so investors should approach them with caution.

How to Invest Wisely in Precious Metals

We recommend a balanced approach: 

• Physical gold and silver provide direct ownership and long-term stability. However, storage and security are concerns, so it’s best to keep this allocation small—around 5% of your portfolio.
• ETFs (Exchange-Traded Funds) offer convenience and liquidity. They’re ideal for active management and diversification.

Combining both approaches provides flexibility and peace of mind—anchoring part of your wealth in tangible assets while keeping another portion readily accessible for use.

As with any investment, precious metals should be approached with discipline and perspective. They’re best viewed as part o