Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Silver, platinum and palladium are in complete chaos this morning, with all three metals exhibiting violent, double-digit price swings within hours of the market open. Silver reached all the way to $84 per ounce earlier today, before electing to explore lows of $75. Platinum briefly breached $2,500 at one point, only to dip back down to $2,200. Palladium is equally unstable. Gold has been practically stationary in comparison, incurring only a minor loss so far today.
The rallies in precious metals achieved full-on hysteria last Friday, with silver, platinum and palladium all registering double-digit gains. Silver closed the week at $79 per ounce, meaning the white metal has gained $50 since the start of the year. There is no other way to describe the rise in silver other than parabolic, and yet the metal is not alone. Platinum started the year under $900 per ounce; it now stands above $2,400. Palladium, while not quite matching the outrageous performances of silver and platinum, has still doubled this year, from $900 in January to over $1,900 last week. Gold meanwhile had a relatively humble week, gaining around $200 by Friday and registering a fresh record high of $4,550 per ounce.
Exuberance aside, some cracks are finally beginning to show for silver. Last week, Elon Musk said the situation in silver markets was “not good”, referring to the key role that silver plays in many industrial applications. The gap between supply and demand continues to widen as miners struggle to keep up, with deficits expected to persist in 2026. Meanwhile, the Chicago Mercantile Exchange has raised the margin requirement for silver futures from $20,000 to $25,000, starting from today. The move effectively limits the leverage on offer, forcing parties to either commit more capital or reduce position size. It is not the first time the CME Group has made such an adjustment, having also done so in 1980 and 2011, among other times. The salient point about the 1980 and 2011 adjustments is that they corresponded to local highs in the silver markets, which would take years to reattain. Adding yet more fuel to the fire, China is expected to impose export controls on silver starting on the first of January 2026. With that said, buyers are still putting pressure on precious metals as of this morning. How the situation resolves is anyone’s guess.
The economic calendar is once again devoid of content this week, with the notable exception of the latest FOMC minutes on Tuesday. The transcript should provide some insight into the Fed’s overall sentiment going into next year, but ultimately, few are expecting a rate cut at the end of January. On Wednesday, many markets will close early on New Year’s Eve, although US markets will remain open all day. Markets throughout the world will be closed on New Year’s Day, while Japanese markets will remain shut on Friday as well. In all likelihood, precious metals will dominate the week’s proceedings.
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