On January 26, 2026, the commodities market reached what appears to be a significant structural inflection point. Gold traded above $5,100 per ounce, while silver touched a record $117.69 per ounce. These moves suggest a material shift in global capital allocation rather than short-term price speculation.
What is driving the numbers?
Industry data and public disclosures indicate that emerging market central banks have continued to increase gold purchases, estimated at 60–80 tonnes per month, reflecting a preference for zero-counterparty reserve assets amid evolving global risk dynamics. We have also seen increased uncertainty around the dollar, prompting institutions to reassess their exposure and turn to gold as a long-established and trusted store of value.
The silver market has recorded its fifth consecutive year of supply deficit. Demand remains largely inelastic, supported by the 2026 solar PV expansion (approximately 665 GW of capacity) and rising consumption from AI-driven data centre infrastructure.
Effective January 1, 2026, China limited silver exports to 44 authorised firms, creating logistical bottlenecks and tightening physical supply in Western markets.
Actionable Considerations for High-Net-Worth Investors
1. Purpose and Allocation:
Precious metals can be used for diversification of portfolio as they have a reliable value and are seen as an alternative to traditional investments. Investing in Gold and Silver can also serve as a hedge against inflation, currency devaluation and geopolitical turmoil, sometimes acting as a “safe haven”.
2. Gold–Silver Ratio Dynamics:
The gold-to-silver ratio has compressed to approximately 46:1, indicating that silver is increasingly being priced as a high-demand industrial input, alongside its traditional role as a monetary metal.
3. Tax Efficiency:
Under the Nigeria Tax Act 2025, the ₦150 million disposal threshold provides opportunities for individuals to structure capital gains on commodity-linked investments more efficiently, subject to professional tax advice.
Conclusion:
The 2026 rally reflects a shift away from prolonged market caution toward more active positioning. Whether observed through traditional or alternative investment types, markets are increasingly differentiating between passive capital preservation and strategic allocation.
How are you positioning your portfolio this year? To explore tailored advisory solutions, book a consultation with our portfolio management specialists today.