Silver Surges, Then Slips — What’s Next?
The Hottest Start Since the '80s — Then a Sudden Chill
Folks, you don’t see this kind of action very often: silver came out of the gate in 2026 like a racehorse that hadn’t seen daylight in months. We’re talking 24% gains in two weeks, pushing the metal close to $90/oz before it finally caught its breath.
Gold wasn’t far behind, adding $256 so far this January. It’s up nearly 6%, closing in on last year’s 7% January run.
Now the usual suspects in the financial media are already speculating: "Has silver peaked? Is the rally over?" But I’ve been around long enough to know a pause doesn’t mean a reversal. This is normal, healthy market behavior. In fact, it’s exactly what we should want if we’re in this for the long haul — and we are.
What Triggered the Pullback? Don’t Let the Headlines Fool You
So why did silver hit the brakes?
The immediate excuse Wall Street’s throwing out is the removal of tariff fears. President Trump announced that no new tariffs will be placed on critical metals, at least for now, after a Section 232 review. That’s after the U.S. spent much of last year stockpiling silver, bracing for a supply crunch that might now ease.
In other words: panic buying slowed down. But let’s not confuse a speed bump for a sinkhole. The demand isn’t disappearing — it’s shifting. And here’s the kicker:
The physical market is still tight.
Even with tariffs off the table temporarily, global silver inventories are being drained, industrial demand remains high (especially for solar and tech), and the average retail investor is still waking up to silver’s role in protecting against currency collapse.
Gold’s Not Dead Either — It’s Just Playing a Different Game
While silver took a wild ride, gold moved more methodically — rallying hard, then slipping just below the $4,600 mark. Some say that’s a sign the party’s over. I say it’s a coffee break before the next leg up.
Here’s what the Kitco piece rightly pointed out: economic data doesn’t give the Fed much urgency to cut rates. The first cut likely won’t come until June, and higher yields usually mean pressure on gold. Normally. But this isn’t a normal market.
The link between interest rates and gold is broken — and has been for a while.
With the world on edge and trust in governments plummeting, gold is functioning less like a hedge against inflation and more like a hedge against institutional collapse.
People aren’t just buying gold to offset CPI. They’re buying it because they don’t trust the system — and that’s a whole different kind of demand.
Gold vs. Silver: Which One Wins from Here?
This is where things get interesting.
After a 150% rally in silver over the last year, the gold-to-silver ratio has dropped to its lowest point since 2012. That makes gold look like the more “stable” play to some traders. But here’s my take:
- If you're looking for long-term security, gold’s your foundation.
- If you're looking for maximum upside with real risk, silver’s still got juice.
Personally? I say own both. Because either way, you're opting out of a system that’s rigged against you.
This Is Not the Time to “Wait and See”
Some folks see silver’s pullback and say, “I’ll wait until it goes lower.” That’s like watching a fire burn through your neighborhood and deciding to buy a hose after your roof catches.
Let me be blunt: the supply issues haven’t been fixed. The economic rot hasn’t been repaired. The digital dollar infrastructure is being built right under our noses. And once that switch flips — once FedNow and other central bank digital currencies go live — you won’t be warned.
You’ll wake up one day, and the rules will have changed overnight.
Arm Yourself Before the Collapse
Don’t wait for the next “bank holiday” or currency reset to realize you’ve been had. The warning signs are flashing — silver’s surge was just one of many.
Get physical. Get secure. And most importantly — get educated.
Because when it all goes down, no one’s going to ring the alarm for you.
Download the FREE "Digital Dollar Reset Guide" right now
Your future self will thank you — or curse you.
That depends on whether you act now.
Stay strong,
Frank Balm
