In a recent Bullionstar conversation, Claudia Merkert spoke with Florian Grummes, founder of Midas Touch Consulting, about the developing dynamics of precious metals. When Silver recently broke over the USD 35-level grims identified as part of a 13-year-old resistance zone and gold that is part of a consolidation phase, he set a roadmap for investors navigating in this rapidly changing landscape.
https://www.youtube.com/watch?v=ykomcnfeto
Silver waves over USD 35: A structural outbreak
Silver has broken through a 13-year-old resistance zone and climbing quickly in early June. Grummes noted that this breakout came a little later than expected, but the strength of the move is significant. On a technical level, he pointed to a “embedded Super Bullish Stochastic Setup on the daily diagram”, which suggests that additional upside is probably in the short term.
Historically, such outbreaks in silver tend to unfold over several weeks. According to Grummes, a race against USD 50 could be on the table – especially if the investor’s demand is accelerating. However, he acknowledged that silver remains unstable and overbought in the short term and advised investors to keep aware of any reversing signals.
What makes this moment different is the wider macro background. Silver is now in the fifth year in a row with supply deficit and the new mining capacity remains limited. This combination of tight supply and rising demand is to set the scene for what Grummes thinks could be a perennial structural revaluation of silver.
He also emphasized the psychological component of the market:
“Markets at the end of the day are mass psychological phenomena.”
As Silver gets more attention, institutional and retail investors may begin to reprice it more seriously – not only as a “poor man’s gold” but as an important asset class itself.
Gold takes a breath
While Silver is enjoying renewed momentum, gold has entered a consolidation phase of several weeks after topping the USD 3,500 in April. Grummes described gold as “a little tired” after a 15-month rally that began with a breakout of $ 2,070 at the beginning of 2024.
He noted that this break is both natural and necessary, especially in the light of seasonal determination. June and July tend to be slower months for gold, and he expects a more crucial step in the second half of the year.
“We know that June is a pretty challenging month for the gold price. Usually we get an important turning point somewhere in late June or early mid -mid -July, and then we get a nice summer rally for metal prices.”
It is important that Grummes still sees the overall course for gold as upwards. He believes that the next price target of USD 4,000 is activated and that a rally could be resumed in the coming months if gold can establish a solid basis around USD 3,100 to USD 3,150.
Asset allocation: How much is enough?
For investors who wonder how to assign their precious metals, Grummes offered a look at his personal strategy. He currently has 50% gold, 40% silver and 10% platinum within the noble metal part of his portfolio, which in itself constitutes a third of his total net worth.
His general guidance for most investors is simpler:
“Two -thirds gold, a third silver is a good rule of thumb, generally seen.”
He warns against extreme overexposure, especially among those who treat precious metals as the only viable value store:
“Gold bugs tend to tend to believe in the end of the world and distrust of other investment. And then you often see gold bugs having 100% allocation in precious metals, which I think is a bit questionable.”
That said, he believes that overweight silver in the current environment is sound, especially given its potential to catch up.
Don’t just stab – plan your output
While many investors occupy over the timing of their entrance point, Grummes emphasized that exits are far more critical for long -term success.
“People are always focused on the best post. But the important thing is the exit.”
He warns that parabolic moves in silver can be short -lived. For example, a rapid increase in the USD 500 could just as quickly fall back to USD 150. It is important to have a predefined exit strategy to avoid seeing gains evaporate.
“In a parabolic feature, you need a strategy to take outputs.”
Grummes gradually recommends scaling out and using market psychology to your advantage, especially in emotional phases of a rally.
Complementary assets: Bitcoin and gold
Grummes also approached the growing cross between crypto and precious metals. He has long followed the Bitcoin gold ratio and sees value when managing exposure to both assets.
“If you manage to sit in gold, wonderful during these retreats, because then the ultimate goal is to have more ounces of gold and more bitcoin combined.”
The key, he says, is not to see them as rivals:
“If you are able to see that gold and Bitcoin complement each other, I think you are still far ahead of most of the crowd, which still struggles to either be gold or should be bitcoin, which doesn’t make sense.”
Emotional resilience: the hidden skill
In addition to diagrams and conditions, the importance of emotional discipline emphasized. In a fleeting environment, it is often the investor’s thinking that determines success.
“Usually at the end of the day you play the game with yourself.”
To remain grounded, he recommends journaling, time in nature and meditation. These tools can help reduce noise, increase clarity and ensure that investment decisions are driven by strategy rather than fear or euphoria.
In a market shaped by momentum, macro change and psychological pressure, Grummes offers a timely reminder: Stack Wiseling, but knows when to get off the train. The next few years could reshape how the world looks silver – and those prepared with a plan can be the ones that benefit most.
See the full interview here.
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