Not Just Gold: Silver Posts Biggest Surge Since 2008
Silver exploded to a new record on Monday (January 26th), officially breaking through $5,000/oz for the first time, extending the precious metals euphoria fueled by a combination of US political turmoil, a weakening dollar, and increasingly risk-averse investors.
In the spot market, gold briefly touched the $5,100s before calming down, while silver posted its biggest daily surge since 2008, briefly hitting a record high of $117/oz.
This rally gained momentum as the dollar weakened and speculation about coordinated measures to strengthen the yen renewed market questions about policy direction—including the issue of central bank independence. The result: precious metals became the simplest choice as investors sought a hedge.
Gold once again became a barometer of fear. After posting its best annual performance since the 1970s, gold rallied strongly again in early 2026—aligning with the "flee from dollar-based assets" narrative as bond and foreign exchange volatility increased.
Silver ran even faster. Besides riding the safe-haven wave, silver was also pulled by a wave of retail buying and "FOMO" sentiment spreading from Asia to global markets—making its movements feel much wilder than gold.
But the market is also starting to apply the brakes. A Bank of America survey of investment managers showed that "long gold" positions are one of the most popular trades, and around 45% of respondents believe gold is overpriced—a sign that euphoria is starting to fuel valuation concerns.
With silver's parabolic rise, several analysts are also warning of the potential for "overheating," especially when the gold-silver ratio falls into an area considered to reflect high speculation. This means the opportunity for a correction remains open, even though the broader trend remains bullish.
The next focus turns to the Fed meeting and the political drama: the market awaits signals on interest rates, as well as developments regarding Trump's choice for the next Fed chair—issues that could alter expectations for interest rate cuts and typically provide additional fuel for precious metals.
Source: Newsmaker.id
