We have to admit, it’s been a tough year for precious metals investors.
What gave us vertigo at the beginning of the year is now making us nauseous. Gold hit its all-time high of about $5,589 per ounce on January 28, 2026. Silver hit its own all-time high of about $121 per ounce a day later on January 29, 2026.
Since then, the market has been distracted by all manner of ups and downs. Most notably, of late, an epic run-up of memory chip companies and massive leverage to support it has sucked the capital out of what are otherwise good companies with healthy profit margins.
Gold bullion has taken a 30% haircut. Silver got cut in half, from $120 to $60. That’s on par with bitcoin’s (BTC) own bear market stretch. Last Wednesday, BTC hit a multiyear low of $59,000 and change.
Frankly, when the price for gold and silver spiked, we got nervous and said as much repeatedly here, in Swan Dive and on Grey Swan Live!
All of that… and our long-term thesis remains intact.
On the currency side, the U.S. government’s intractable politics and spending habits will drive deficit spending and debt until some adults step into the room. Given the level of political discourse today, the only adults anywhere near the Capitol are grifting off the system in covert arrangements.
The M2 money supply is increasing at a historic pace. And, globally, central banks, seeing what a disaster government fiat finance is, are swapping U.S. Treasury debt for gold at a historic pace.
To be 100% clear for you, dear reader, our long-term outlook for gold, silver and bitcoin remains a “buy.”
That said, silver’s got an ace in the hole; gold and BTC don’t.
The metal acts like gold’s poor cousin, sometimes. But its real value is in its productive versatility. It’s a vital commodity in the industrial boom that sits at the base layer of Huang’s 5-Layer Cake.
Because of its natural conductivity, Silver acts like a “superhighway” for both electricity and heat.
A simple analogy: imagine your data center as a busy highway. Copper is a paved two-lane road that works well. Silver is a perfectly smooth express lane that eliminates traffic jams. It allows data and power to move as quickly as possible without melting the road.
Amid the industrial buildout of data centers, silver is a critical component in everything from chips to power distribution:
Silver is best known for its demand in high-tech electronics, and the AI infrastructure buildout could lead to surging demand. (Source: Mining Visuals)
The AI buildout is leading to some bubbly valuations and a bumpy ride for investors trying to nail the memory chip, space or hyperscaler trade. Following silver’s 50% haircut, despite soaring demand and a lack of new supply coming online, gold’s poor cousin stands to gain the most.
Even if AI data center demand cools, silver’s ubiquitous uses make the metal’s price anywhere near $60 a buy today. Silver producers, too, are making good profits at this price and higher.
Today’s Grey Swan Pro looks at a top player in the precious metals space with an emphasis on silver. Despite the wild ride in silver’s price, the company is executing well, growing earnings and cash flow while also cleaning up its balance sheet — details here.
~ Addison
P.S. On Thursday, for Grey Swan Live!, we’ll be tapping Shad Marquitz’s expertise in precious and industrial metals, mining and energy to zero in on the base layer of Jensen Huang’s “5-Layer Cake” – strategy for the AI intelligence economy buildout.
Specifically, the “Sovereign Bloc” strategy was established when President Trump issued an executive order establishing Project Vault.
Background: The 5-Layer Cake is a bottom-up supply chain strategy focused on physical technology and infrastructure. The Sovereign Bloc is a geopolitical risk strategy focused on domestic resilience, national control, and regional trade ties.
If the 5-Layer Cake strategy is about owning the best flour, ovens, and frosting recipe to make a highly profitable treat, the Sovereign Bloc is about a country deciding it wants to own the bakery and grow its own wheat, so no other country can stop it from eating.
