In the first trading day after Christmas, silver prices hit record highs and gold approached all-time highs. Spot silver rose 2.2% to $73.44 an ounce, rising for the fifth consecutive day; Spot gold is approaching the all-time high of $4,525 per ounce.

Jim Rickards, a well-known economist, boldly predicted that by 2026, the price of gold may soar to $10,000 per ounce; Silver prices may hit $200 per ounce.

Although this sounds exaggerated, in the current context of high inflation, monetary easing and geopolitical turmoil, more and more investors are using precious metals as "ballast stones".

Silver rose to a record high, and gold was also approaching an all-time high

Spot silver rose to an intraday high of $73.44 per ounce on Thursday, setting a new all-time record and rising for five consecutive days. Since the beginning of this year, silver prices have surged by about 150%, making it the strongest performing star among precious metals.

Spot gold was equally strong, close to the all-time high of $4,525 per ounce.

Why did it rise so sharply?

Geopolitical risks are heating up: Tensions in Venezuela and the blockade of oil carriers in the country by the United States have also blocked the country's oil carriers, and risk aversion in the market is high, and funds have poured into gold and silver.

The Fed may continue to cut interest rates: Investors generally expect the Fed to cut interest rates again in 2026. In a low-interest rate environment, non-interest-bearing assets such as gold and silver are more popular - because the opportunity cost of holding them has become lower.

| Jim Rickards predicts that gold and silver prices will explode in 2026

Jim Rickards, a well-known economist and best-selling author, recently said that the bull market for gold and silver is far from over, and 2026 could usher in even greater gains.

He pointed out that the two traditional factors driving gold prices - continued buying by central banks and slow growth in mineral supply - will continue to support the market in 2026.

More importantly, more and more large institutions have also begun to snap up gold, such as sovereign wealth funds and university endowments. They are worried: "If geopolitical tensions or the United States 'turns its face' because of something, will the assets that exist in the United States be frozen or even confiscated?"

Rickards gave an example: "If you are Saudi Arabia, Japan, Brazil, or a country that holds a lot of U.S. Treasury bonds, you may be thinking: Should I exchange some of my money for gold to diversify risk?"

Recently, Europe's attempt to take over Russia's overseas assets has made many countries more alert that gold will not be frozen or confiscated, and is the safest 'hard currency'. To put it simply: in an era of increased uncertainty, gold is not only an investment product, but also an "insurance".

With countries and large institutions increasing their holdings, Jim Rickards believes that gold and silver prices may usher in a real explosion in 2026.

|“ "Short squeeze" + physical shortage is the key

Jim Rickards pointed out that there is another important reason behind the surge in silver prices: physical silver is in short supply.

He explained that the ratio of "paper silver" (such as futures, ETFs and other financial products) to real physical silver in the current market is as high as 100:1 - that is, only 1 physical silver that can be actually delivered for every 100 contracts.

When more and more investors demand physical delivery, the market "can't hold back", driving prices up rapidly.

In October this year, the silver market experienced a historic "short squeeze" (a large number of short sellers were forced to buy and close their positions), coupled with tight supply + speculative capital influx, the price jumped sharply in a short period of time, and now silver has exceeded $70 per ounce, one of the best annual performances in years.

How high will gold and silver go in the future?

Rickards boldly predicted: "I am not surprised at all that the price of gold will rush to $10,000 per ounce by the end of 2026, and silver will follow suit, reaching $200 per ounce." ”

At present, gold has stood at $4,500, silver has exceeded $70, and even the prices of other metals such as platinum and copper have risen sharply, and the entire commodity market is heating up.

Jingtai's view: $4,500 in gold and $73 in silver are not the end, but the starting point of a new narrative. When the central bank no longer only buys U.S. bonds, when retail investors begin to hoard gold bars, and when paper wealth encounters a crisis of confidence, gold and silver become the ultimate answer to silence.

Risk warning: If the U.S. economy is stronger than expected and the Federal Reserve delays interest rate cuts, gold and silver may pull back. Rickards predicts that it is an extremely optimistic scenario and should not be placed on cross-border bets, as silver liquidity is weaker than gold, and it is difficult to get out of it when it falls sharply.