Gold & Silver: Front-Running Global Currency Reset Like Insiders (Recap of a Wild January 2026!)

Hello dear friends. My name is Clive

Thompson. Today is January 30th, 2026.

It's the last working day of January

because it's Friday for 2026.

Today I'm here to discuss what's been

going on in the precious metals market

during the month of January 2026.

We have seen an unprecedented rally

across the entire precious metals

complex.

Gold, silver, platinum, and palladium

have all experienced significant price

appreciation.

That was driven by a combination of

geopolitical instability,

a weakening of the US dollar,

and growing concerns about physical

supply shortages.

Gold smashed records, trading not only

above $5,000 an ounce, but above $5,500

an ounce at one point. It's now about

5,180 as I speak uh on this Friday

morning. While silver has seen an even

more explosive move, surging past $100,

$110, and then past $120 at one point.

Uh it's now about $108

as I speak this, but the volatility is

very extreme. So, it could be any price

at all by the time you listen to this in

a couple of hours time.

The reason for the silver surge has been

uh rumors or stories of a very severe

short squeeze on COX

bullion banks who've been shorting the

silver market which is a traditional way

of making money. you sell the the the

contract 3 months forward, wait for it

to come to maturity, buy it back at

spot, and sell again the futures

contract 3 months forward. Um, that's a

guaranteed way of making money because

of the contango means the 3-month price

generally trades higher than the one

month the the the zero month price. So,

by selling three months forward and then

buying back when it gets to zero month,

you lock in a profit each time. But the

trouble with that is

if you are expected, if you're a short

and you're expected to deliver the

silver that you don't have, you've got

to lay your hands on it. You might well

have the silver, but if it's in the

wrong place, let's say London instead of

New York, or it's in the wrong shape, in

other words, it's not deliverable bars,

whilst you might be financially covered,

you're going to have to try and buy the

right side, the right size, right shape,

physically deliverable bars on COX, and

that might be what you've got trouble

getting your hands on. So, that could

explain the short squeeze going on in

COX.

Now amongst the themes which have been

affecting the precious metals price have

been the uh administration the Trump

administration's trade policies.

We've also had the Federal Reserve

chairman Jerome Powell appearing to

dismiss the

rally in the gold price, dismiss the

macroeconomic significance of that um

and ignore the deficit in the silver

market. Now obviously that's not what

Alan Greenspan was doing. Alan Greenspan

used to think that the gold price was

one of the most important things he

looked at every single day because he

told him it told him if something was

going wrong. A rising gold price, what's

going wrong? We have to do something.

Falling gold price, everything's hunky

dory. But uh Jerome Pal appeared not to

be concerned by the gold price. And more

importantly uh when he was asked about

the falling dollar uh he again really

said that's not our concern. It's the

concern of the Treasury uh which spooked

the markets a little bit because after

all the Federal Reserve of which he's in

charge is the issuer of the US dollar

currency. So, uh to say that it's not

really your concern when when you're the

head of the the biggest country in the

world, the world's reserve currency and

you're the issue of it obviously got a

few major players a little bit spooked

there.

So,

as far as forecasts for where gold could

go and silver could go, uh we're now

seeing forecast start to come out with

uh the possibility of $6,000 gold. Uh

and we're halfway there. At one point

when we were 5,500 in the just the first

month from 5,000 and uh talk of silver

going to $150. Uh these are this is talk

of it getting to these numbers in the

short term. And by the short term, I

don't know what that means, but next

month or two is what people are saying.

Of course, these are just forecasts, and

we know that forecasts are always wrong.

They're either too high or too low. Uh

so take them with a pinch of salt.

And there are also deficits at the

moment in the platum and palladium

markets where the demand for industrial

use particularly the automotive industry

exceeds the mind supply and the mind

supply mustn't forget is very precarious

because all of the platinum palladium

comes from only two countries or mainly

two countries. one is Russia which is

sanctioned and the other one is South

Africa where there's always going to be

a worry of u political instability and

obviously

workers asking strikes and things like

that asking for more money. So there's a

sort of worry that if we get into a

strike action say in South Africa the

supply of platinum palladium might dry

up for a while and therefore uh users of

platinum palladium are starting to stock

up to make sure they got a supply to

keep themselves going through a dry

period.

So at the press conference of 28th of

January, two days ago, Federal Reserve

Jerome Powell was directly questioned

about whether the parabolic rise in gold

and silver prices indicated a loss of US

credibility on the world stage.

Powell

dismissed that notion,

stating,

"The argument can be made that we're

losing credibility or something, but

that's simply not the case."

Well,

that's uh his opinion and of course he

was put on the spot by the question so

he didn't have time to think of a of a

better answer.

But clearly if the price of gold

is going through the roof, it means that

the dollar is losing its credibility

because obviously the dollar as we see

on the uh looking at the DXY index is

now once again falling sharply after

falling about 10% last year.

So Jirean Pal said that he uh point he

he pointed to the anchored inflation

expectations

as proof of the Fed's standing and he

asserted that the central bank doesn't

take macroeconomic messages from the me

metals rally. Obviously that's very much

in contradiction with Alan Greenspan who

regarded gold as one of his primary

indicators as as to whether everything

was working and a a rising gold price.

Don't forget Al Griezban was a former

Federal Reserve chairman many years ago

and he would Greenspan would say a

rising gold price is a reason we have to

be worried. We have to look at what we

have to do.

So anyway, uh according to Jeron Paul,

the central bank does not take messages

macroeconomically from the metals rally.

But that message is in stark contrast to

the views of many major players in the

uh treasury and dollar markets.

Many would say that the rise in gold is

a clear sign of eroding confidence in

the US dollar.

Now, another factor affecting the gold

price and causing it to rise so much has

been President Trump's

aggressive use of tariffs.

Um, so since his inauguration, the price

of gold has jumped by about 90% 90%

since he was inaugurated. uh about a

year ago

and these threats of sometimes up to

100% tariffs on Canadian goods for

example and a stated desire by him for a

weaker US dollar but not but at the same

time saying a strong dollar so bit of a

contradiction there a weaker dollar

whilst the dollar remains strong to

boost domestic manufacturing and that

basically this sort of flip-flop has

created some sort of uncertainty.

But the if we look at the numbers and

listen to what the market is saying

about itself, the dollar has fallen to a

4year low. It's lost 10% of its value in

2025 and it's continuing to decline in

2026.

So what we've got going on is

potentially what's called the debasement

trade. The debasement trade is where

investors flee from fiat currencies to

the safety of hard assets. So the the

old narrative of gold keeps up with

inflation and it will buy you the same

as it bought 10,000 years ago, 2,000

years ago, 500 years ago or yesterday.

Um and using gold as the inflation hedge

has kind of gone away. Now people are

looking at more as a um what could go

wrong in the future. So they're kind of

front running the unknown. And the

unknown for them is something far more

serious than we're seeing at the moment

of a rapid decline in the dollar.

They're seeing something more serious

than that. So they're front whatever it

is that's coming. They don't know. We

don't know. Nobody knows. Uh we've got

some ideas on what might happen. But I

think people are starting to frontr run

that by buying gold. And amongst the

most voracious buyers of gold have been

the central banks. Um the the statistics

from central banks are always uh heavily

lagged. There's many months of delay for

from some of them and some of them don't

even report the numbers at all. But we

so far what's reported we know that in

2025

collectively they bought 863 tons of

gold. Uh I guess more numbers are going

to come in showing that number creeping

upwards and the trend is expected to

continue the trend of central bank

buying in the current year.

Um, as for the gold price forecasts,

what what are we seeing? We're seeing

UBS forecasting 6,200, Goldman Sachs

5,400. Well, we, you know, they I I

don't know when they forecast that, but

they it passed that a few days ago. Um,

Deutsche Bank $6,000, Society General

$6,000, Morgan Stanley $5,700 in a bull

case. Um, and these are

20, they're called 2026 gold price

forecasts. Uh, but what that could be,

it touches it next month for all we

know. Um, as for silver, the the market

could be on the brink of something

major. Um, the prices have rocketed 65%

in January 2026. At least it was up 65

when it reached $120 an ounce. As I say,

it's about 108 something now. Uh I might

have a look at that shortly. Um the that

rally has been driven by the short

squeeze on COX where there's a large

paper short position colliding with

dwindling physical inventories. Um and

what I'd like to say to everybody is

watch out for the month of March. the

number of open contracts or the the

amount of silver represented by the open

contracts is massively in excess of what

is deliverable at the moment. Now

between now and March those contracts

might get closed but the last time I

looked which was yesterday the number of

open contracts was not closing or

reducing it was rising. Um so

if those if the majority of those uh

buyers of silver contracts for March

demand delivery, the silver doesn't

exist at the moment.

And that's a fact.

So as of late January, registered silver

inventories on ComX, which is the only

silver available for immediate delivery

against future contracts, covered only

14% of the paper claims.

So that means there's seven claims at

least as far as the futures are

concerned on every actual physical

ounce. So you only need one in seven to

demand their silver and all it's all

gone.

Um in the first week of January there

was a 33 12 million ounce withdrawal

from ComX

representing 26% of the registered

inventory vanishing in that week.

There is said to be a large short

position held by commercial traders um

and that would include uh gold or silver

mining companies and others um via the

large prime large banks

um and it's significantly more than the

registered silver available for

delivery. So there's a precarious

situation where some of those shorts as

a part of their risk management are

starting to close their short positions

further triggering or pushing up the

prices.

Um analysts are saying that this

tightness in the physical market

uh is likely to continue. Um City Group

for example has been very aggressive.

It's raised its short-term price target

on silver to $150 an ounce, which kind

of implies another 40 to 50% upside in

the coming weeks.

Platinum Palladium as we know has been

have been participating the the precious

metals rally. Um they've got their own

unique supply and demand fundamentals.

Uh both of them are facing supply

deficits.

uh and that is being exacerbated by

production issues in the key producing

nations Russia and South Africa and also

exacerbate

I can't say the word exa exacerbated by

the strong industrial demand.

Um, as far as platinum is concerned,

it's expected, according to the World

Platinum Investment Council, to remain

in a structural deficit for as far out

as they can see. Um, they look at the

deficits averaging about 689,000

ounces a year. Um and at the moment

there's a ongoing problem in South

Africa because there's uh production is

being hampered by operational issues and

palladium from Russia um obviously is

affected by the sanctions and kind of

difficult to get your hands on. Um Bank

of America Securities has raised its

2026 price forecast for platinum and

palladium. Uh, they see platinum

reaching $2,450.

Well, I thought it was there. I made a

mistake, but that's what they said. They

see platinum reaching $2,450 and

palladium reaching $1,725

an ounce. And I'm just going to have a

quick look to see uh if that sounds

right because that does sound uh quite

odd. So, we're just telling you now

where gold is. Gold is currently at um

5,142

as I speak and silver is at $15.551

and platinum is 2365.

So not far off the forecast of 2450.

Um I don't immediately see palladium on

my screen.

Oh yes I do. Uh, no I don't. I'll pass

on the palladium for the time being.

Now,

let's just talk a little bit about the

physical shortage of metal on the comx.

The demand at the moment is clearly

overwhelming

and the the rise in the price indicates

that the market is struggling to meet

its physical delivery obligations in the

face of this huge new demand

unprecedented demand. So there's a

critically low I'm just reading here

about some things I've read. There's a

critically low coverage ratio. Uh that

means that only 14.2% 2% of silver

futures contracts are covered by

registered physical inventory and even

if we add the eligible inventory which

is not available for delivery and much

of it's owned by ETFs and sovereign

funds and uh and family offices will

which will never turn it from registered

into um it it sorry never turn it from

eligible to registered but even if we

include the registered there's still not

enough silver to meet all those

contracts That's a fact I'm talking

that's for the March maturity only.

Um we've seen this massive drain in

January of 33 and a half million ounces

going out uh of Comx. We've got a little

bit of a backquidation now uh in the

silver market where the futures prices

are starting to be uh a bit below the

spot prices um which indicates that the

demand for immediate delivery of silver

is higher than the demand for delivery

of silver in 3 months time. But that

could also be a sort of warning that the

silver price might decline as uh time

marches on because uh if the futures

price is lower than the spot price, it

means the demand people are trying to

buy now and not in 3 months time.

So yeah, uh just to finish off, we've

got this unprecedented period January

2026 where we've seen one of the most

volatile periods ever in history.

Perhaps not the most volatile, but

certainly one of the most volatiles for

gold and silver. Uh we're seeing this

strong uh demand in the in the light of

the geopolitical turmoil, the weakening

dollar supply shortages. Um

obviously there's a concern that

something might be going to happen at

some point. We don't know if it's days

away, weeks away, months away, years

away. Um but the you know we all know

the world the word global currency

reset. We know it's coming at some

point. It's going to come for most

people long before they take their

retirement. Uh and they've got to be

doing something to have something which

is at least outside the system so they

can get their hands on it. And uh whilst

there's other options like property,

many people are choosing to turn to the

most liquid of all options which is gold

and silver. Because you know that in a

crisis when people don't want your

money, everybody's going to figure out

very very fast what an ounce of gold or

what an ounce of silver will buy. and

you'll have no shortage of people who

want to take it off you. Even if there

are governmental restrictions,

everybody's going to want it. Uh so,

ladies and gentlemen, thank you very

much for this and that concludes my

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