2026 Has Been a Rollercoaster Ride for Gold/Silver Investors
Gold and silver are often viewed as a safe haven for global uncertainty and market turbulence. Investors buy gold, silver and other precious metals because they see them as constant tangible assets that will always have value. Investments in currencies, stocks and bonds have no intrinsic value and derive their value by fiat – a declaration of value based on the faith and confidence in the issuer. Economies, financial systems and even entire countries have collapsed, but for centuries precious metals have proven their resiliency in storing wealth.
2025 was certainly a banner year for investors of gold and silver. Last year, the price of an ounce of gold rose from $2,641 to $4,341, a hefty 64.4% increase. Not to be outdone, silver performed even better. In 2025, the price of an ounce of silver rose from $29.24 to $70.60. That’s a massive 141.4% gain. Compare those returns to the benchmark S&P 500 stock index which gained a very solid 15.4% last year. Likewise, the tech-heavy NASDAQ rose 18.4% in 2025 while the Dow Jones Industrial Average rose 13.2%.
In 2026, gold and silver once again started the year off strong. From Jan. 1 through Jan. 29, the price of gold rose an additional $1,013 (+23.4%) to reach a new record high of $5,354 per ounce. From Jan. 1 through Jan. 26, silver gained an additional $44.90 (+63.6%) to reach a new record high of $115.50 per ounce.
The surge in gold and silver prices was driven by a number of factors. Growing geopolitical tensions, especially in the Middle East, caused investors to buy precious metals as a hedge against uncertainty. There has also been a growing demand for precious metals used to supply the global build-out of AI technology. Gold and silver are critical components used for high-performance conductivity in AI data centers, server infrastructure and advanced microchips.
Finally, the prices of precious metals are very sensitive to changes in interest rates. As interest rates fall, the prices of many precious metals tend to rise. In 2025, the U.S. Federal Reserve continued to lower interest rates in response to declining inflation. As interest rates fell, it helped propel gold and silver prices higher.
But the historic rise in the prices of gold and silver doesn’t mean that investors of precious metals are shielded from the ups and downs and volatility sometimes found in other types of investments. In March, the price of gold quickly fell 16.6% while the price of silver fell by 37.1%. Many experts suggest this pullback was from the prices of gold and silver simply rising too fast and too quickly in the 14 months from January 2025 to February 2026.
The financial markets have had a lot to digest so far in 2026. With an ever-changing global geopolitical and economic climate, the recent volatility in gold and silver prices is understandable. Yes, gold and silver are different than the more traditional investments of stocks and bonds. But remember, most investments carry some element of risk. And as we’ve seen in 2026, that element of risk extends to precious metals.
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Quad Cities Investment Group and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Quad Cities Investment Group unless a client service agreement is in place.