Precious Metals in 2026: Four Reasons Why the Rise Will Not Stop

2025 will go down in history as the year of gold and precious metals. While traditional stock markets provided modest returns, precious metals completely dominated the investment scene. Silver surged by about 150%, platinum gained 130%, while gold closed with a solid +64%. Even artificial intelligence — the year’s trendiest theme — couldn’t compete with the performance of these “barbaric” assets, except for the exceptional case of Palantir. But the real question remains: will this rally continue in 2026?

An Irreversible Global Transition

The global geopolitical landscape has undergone profound changes that are unlikely to be reversed. The Russia-Ukraine war of 2022 marked a crucial breaking point: US sanctions on Russia prompted many countries to reconsider their dependence on the dollar-dominated financial system. Many nations have realized that holding large reserves in US Treasury bonds poses an unacceptable risk. The new strategy has become clear: diversify away from the dollar toward gold and other metals.

BRICS countries are leading this transition toward a less centralized monetary system, developing alternative currencies partially backed by gold reserves. This shift is not a temporary phenomenon but a structural reallocation of global reserves that will take years to complete.

American Credit Deterioration and Silent Inflation

Beyond geopolitical concerns, foreign central banks are increasingly troubled by the US fiscal situation. Federal debt has surpassed $38 trillion and grows by trillions each year. The three main rating agencies have already downgraded the US credit rating, recognizing the unsustainability of the debt trajectory.

Facing an almost unpayable debt and political limits on tax increases, governments are resorting to a preferred solution: allowing inflation to silently erode the real value of debt. Since 2020, the dollar has already lost over 20% of its real value; considering 2000, the devaluation exceeds 40%. For the younger generation of Americans, the effects of inflation are no longer abstract but tangibly painful. The lessons of the 1970s have been forgotten, but now they return urgently as confidence in government-issued paper currencies wavers.

Structural Demand and Supply Shortages

Gold remains a limited supply asset due to extraction complexity and high production costs. Silver and platinum face even more acute supply shortages, as new mining projects require years to develop. These demand-supply imbalances will not be resolved in the short term — unless the global economy plunges into recession.

Meanwhile, governments and the US are increasingly classifying these metals as critical strategic resources. The consequence is twofold: pressure to develop domestic mines (a decade-long process) and accelerated stockpiling by countries. In Q3 2025, US gold ETFs saw a 160% increase in metal holdings. In the first half, global silver funds recorded inflows equivalent to 95 million ounces — surpassing the total of all 2024. Even distribution chains like Costco now offer gold and silver coins to families who previously saw no need for diversification beyond the dollar.

Platinum and the Rediscovered Intrinsic Value

In this context, platinum is a quintessential case. Once perceived as little more than an industrial metal, platinum is regaining the intrinsic value it deserves. With persistent supply shortages and increasing demand from institutional and retail investors, platinum’s value continues to rise, driven by the same logic supporting gold and silver: the desperate search for reliable stores of value in an increasingly uncertain monetary world.

Outlook for 2026

The factors supporting the rise of precious metals will not disappear in the coming months. Although gains in 2026 may be less explosive than the extraordinary jump of 2025, growth opportunities remain significant. If Western central banks continue to cut rates, if governments persist in their failure to control deficits and debt, and if inflation remains above desirable levels, then gold, silver, platinum, and other tangible assets will continue to provide real protection against fiat currency erosion.

As of January 2, during the Asian session, spot gold experienced a slight increase of 0.65%. The relevant quote was $4,350.67 USD per ounce, confirming market resilience.

The conclusion remains firm: the bullish precious metals market is far from over.