Metals Hit New Records in January, Explosive Rally Continues

[Ben Graham]

Gold and silver stormed to new record highs in mid-January, as investors continue to look for alternatives to traditional assets. Gold hit another fresh record at $4,728.90 an ounce and silver touched $94.

Investors are trading paper dollars for precious metals as geopolitical uncertainty climbs as European troops are deployed to Greenland amid President Trump’s calls to take over the island, and violent protests continue in Iran. The post World War II order is shifting quickly, with the recent U.S. action in Venezuela and the strong interest in taking over Greenland.

Throughout history, precious metals have served as a safe-haven investment during times of political and military turmoil. Owning physical precious metals gives investors access to a liquid asset that is outside the traditional financial system and outside the U.S. sphere of influence. At a time when the U.S. dollar is falling and U.S. government debt is climbing, investors are trading out of dollars and into the known safety of gold and silver.

Renewed threats to Federal Reserve independence have also helped gold hit new highs this month. The Department of Justice threated the Federal Reserve with a criminal indictment. This boosted concerns the White House’s pressure campaign to lower interest rates could keep inflation higher for longer.

If the Federal Reserve were weakened as an institution and becomes susceptible to political pressions, it could open the door to a period of long-term U.S. dollar weakness and higher inflation—in that environment, precious metals are especially attractive as a store of value.

Looking ahead, the blistering precious metals rally shows no signs of losing steam. Numerous banks are calling for gold to hit $5,000 or higher in 2026 including HSBC, Bank of America and JP Morgan. The outlook for silver remains strong, with Bank of America projecting gains to $135 or even $309 per ounce, depending on how specific macro scenarios play out.

Gold and silver are hitting records as investors hedge against geopolitical stress, a weaker dollar, and concerns over bubbles in risky assets like the stock market. Central-bank and institutional demand for gold has been robust. Silver faces persistent supply deficits alongside strong industrial use, especially in energy and electronics, which will help support higher prices ahead.

The world is changing fast. Seemingly every day, old norms are slipping away, opening the door to a different world ahead. While uncertainty may reign on the global stage about what lies next, the certainty of owning precious metals comes with a 5,000 year track record of safety, store of value and wealth building opportunities. Markets are moving. Don’t delay. Acting today to increase your allocation to precious metals can help preserve and grow your wealth for tomorrow.

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