The BareStory
Precious metal prices surged to historic levels in late January 2026, driven by economic instability and increased demand for safe-haven assets. As of January 23, gold prices exceeded $4,900 per ounce, following a 60% increase in 2025. Simultaneously, silver broke through previous ceilings to trade just above $94 per ounce. Analysts attribute the rally to a mix of global supply deficits, high industrial demand, and investors seeking protection against market volatility.
Nicky Shiels, head of metals strategy at MKS PAMP, linked the rising prices to specific sources of market anxiety. According to Shiels, contributing factors include a federal investigation into Federal Reserve Chairman Jerome Powell, a U.S. military operation in Venezuela, and economic tensions surrounding a U.S. push to control Greenland. These uncertainties have prompted capital reallocation from other sectors into metals, which historically serve as a hedge against systemic financial risk.
Financial professionals note that investors are weighing the benefits of physical ownership against "paper" assets like ETFs. For physical buyers, the choice often lies between bars and coins. Silver bars typically carry lower premiums and are efficient for bulk storage, while government-backed coins offer greater liquidity and recognition despite higher upfront costs. Similarly, experts estimate that physical gold often commands a 5% to 10% premium over the spot price. Advisors generally recommend limiting gold holdings to between 5% and 10% of a portfolio, emphasizing that investment strategies should align with individual goals and liquidity needs.
How it may affect me
As a U.S. reader:
• You may encounter market uncertainty driven by the investigation into the Federal Reserve Chairman and U.S. actions in Venezuela and Greenland.
• If investing in gold to hedge against risk, advisors recommend limiting holdings to 5% to 10% of your portfolio to maintain liquidity and meet long-term goals.
• Purchasing physical gold generally requires paying premiums of 5% to 10% above market rates, a cost you must factor into expected investment returns.
• When buying physical silver, you face a trade-off between bars, which offer lower premiums for bulk storage, and coins that provide better recognition and liquidity.
• Structural global supply deficits and high industrial demand are keeping metal prices elevated, potentially impacting costs in sectors reliant on these raw materials.
