Navigating the 2026 Precious Metals Supercycle: Why We’re Temporarily Pausing Purchases and What It Means for You

Dear Valued Customers,

I wanted to provide a quick update on the current state of the precious metals market and explain why we’ve temporarily paused buying/trading all products. This decision isn’t taken lightly—it’s to protect both you and our operations amid unprecedented market conditions. Here’s a straightforward summary of what’s happening, based on the latest insights as of January 29, 2026.

Explosive Price Surge in Precious Metals

Precious metals have seen dramatic increases this month, with gold hitting around $5,200–$5,500 per ounce (up nearly 30% in January alone and 70–90% over the past year), silver soaring to $110+ per ounce (up 70%+ this month and 150–280% annually), and similar gains in platinum and palladium. This isn’t a fleeting bubble or scam—it’s driven by real global factors:

•  Geopolitical Instability: Tensions from U.S. policies under President Trump, including trade wars, threats of military actions, and shifts in alliances, are pushing investors toward safe-haven assets like gold and silver.

•  Weak U.S. Dollar and Inflation Fears: The dollar is at four-year lows, with central banks worldwide (especially China, Russia, India, and Turkey) buying record amounts of gold to diversify reserves away from fiat currencies. Ongoing U.S. debt concerns and potential Federal Reserve rate cuts are fueling this “debasement trade.”

•  Strong Demand and Supply Shortages: Industrial needs for silver (in solar panels, EVs, AI tech, and electronics) and platinum/palladium (in autos and manufacturing) are booming. China’s new export restrictions on silver have tightened global supplies, creating structural deficits that have persisted for years.

•  Investor Momentum: Central banks, big institutions (like JPMorgan and Citigroup), hedge funds, retail buyers (especially in Asia), and even tech giants (e.g., Nvidia, Tesla) are actively purchasing, often securing direct deals from mines to avoid disruptions.

These elements have created a “supercycle” where demand far outpaces supply, leading to rapid price rallies. While exciting for holders, it’s causing operational chaos across the industry.

Challenges in the Market Infrastructure

The key exchanges—COMEX (U.S.-based) and LBMA (London)—are under severe strain, which is directly impacting us and the entire supply chain:

•  Inventory and Delivery Crises: Vault stocks for silver have plummeted (COMEX down 60% last month, LBMA at 140-year lows), leading to zero-delivery days, extended settlement times (from next-day to weeks or months), and emergency shipments. Gold inventories are also strained, with massive open interest in futures contracts risking squeezes.

•  Payment and Processing Delays: Refiners like ours are overwhelmed with incoming scrap due to high prices encouraging sales, but payouts are delayed because banks and exchanges at the “top” of the chain are facing liquidity ties, hedging losses, and borrowing strains. What used to take days now stretches to 4–12 weeks, as metal sits in bottlenecks waiting for settlements.

•  Broader Effects: This scarcity is decoupling paper prices (futures) from physical spot prices, often at premiums in Asia. It’s not a lack of buyers—demand is red-hot—but a breakdown in timelines, logistics, and capital flow. Analysts warn of potential market halts, volatility spikes, or even a shift away from Western exchanges toward more reliable physical markets.

These issues echo past manipulations (e.g., bank fines for rigging) but are amplified now by the rally’s speed. For dealers nationwide are reporting the same overloads, making it hard to process and pay out efficiently.

Why We’ve Paused Buying Temporarily

To ensure we can continue providing fair, reliable service without risking your assets or our stability:

•  Protecting Timely Payouts: With refiner and bank delays tying up capital, we can’t guarantee quick turnarounds for your items. Pausing allows us to clear existing backlogs and avoid overcommitting.

•  Avoiding Market Risks: The volatility could lead to sudden corrections if geopolitical tensions ease or exchanges intervene (e.g., higher margins or shutdowns). We don’t want to lock in buys at peaks only for prices to shift dramatically.

•  Maintaining Trust: This pause lets us monitor developments closely—like the upcoming March 2026 futures expirations, which could be a flashpoint—and resume when the supply chain stabilizes. Fundamentals remain bullish long-term, so this is a short-term precaution.

We’re closely watching for improvements and will update you as soon as we can safely restart buying. In the meantime, if you have holdings, consider them a strong hedge against ongoing uncertainties. If you have questions or need advice on alternatives (e.g., direct sales or storage), feel free to reach out—our team is here to help.

Thank you for your understanding and continued partnership. Let’s navigate this together.