Precious metals extended their robust rally on the first trading day after Christmas, with silver hitting a record high and gold approaching its all-time peak. Prominent economist Jim Rickards has issued a startling new forecast, suggesting gold could surge to $10,000 and silver reach $200 by 2026. Spot silver climbed 2.2% to a historic high of $73.44 per ounce on Thursday, marking its fifth consecutive day of gains. Spot gold, meanwhile, edged closer to its record high of $4,525. Escalating geopolitical tensions in Venezuela, where the US has imposed a blockade on the country's oil tankers, intensified the safe-haven demand for precious metals. Furthermore, traders are betting on further interest rate cuts from the Federal Reserve in 2026, providing additional support for the metals. Silver has already surged 150% year-to-date, with its ascent accelerating since a historic short squeeze emerged in October. Renowned economist and best-selling author Jim Rickards stated in a recent interview, "The factors driving the entire metals market higher will continue to exert force next year; I would not be at all surprised to see gold at $10,000 and silver at $200." Silver led the charge to a new record high, with gold closely following suit. Spot silver reached an intraday high of $73.4393 on Thursday, setting a fresh historical record for the fifth straight trading session. With an approximate 150% gain this year, silver has become the standout performer among precious metals. Spot gold also demonstrated considerable strength, nearing the record high of $4,525 set on Thursday. Persistent geopolitical risks, particularly the tense situation in Venezuela and the US blockade on its oil shipments, have further cemented gold's status as a safe-haven asset. Market expectations for additional Fed rate cuts in 2026 are also underpinning precious metal prices, as a low-interest-rate environment typically benefits non-yielding assets like gold and silver. Jim Rickards predicts a massive breakout for gold and silver prices by 2026. The well-known economist, financial analyst, and best-selling author offered an extremely optimistic outlook for the precious metals market in 2026 during a recent interview. He indicated that the traditional drivers of the current bull market—central bank demand and relatively stagnant supply—will continue to be influential in 2026. Rickards emphasized that increased demand from institutional investors, including sovereign wealth funds and endowments, could push prices even higher. He pointed out that recent European efforts to seize Russian assets are also impacting gold demand, as nations begin withdrawing capital from assets vulnerable to confiscation. Rickards explained, "If you are Saudi Arabia, Japan, Brazil, or any large holder of US Treasuries, you might think, 'What if the US doesn't like something I do? Maybe I should diversify into gold.'" The short squeeze effect is propelling silver prices sharply higher. Analyzing silver's rapid price increase, Rickards linked it to a supply-demand imbalance in the physical delivery market. He noted that in a market where the paper-to-physical silver ratio is 100:1, demand for physical delivery is driving prices upward. Since experiencing a historic short squeeze in October, the silver market's upward momentum has continually accelerated. A combination of tight supply and a surge in speculative demand has fueled a dramatic price leap in a short period. Rickards concluded, "I would not be at all surprised to see a $10,000 gold price before the end of 2026, and I think we will see it. Silver will follow this trend, and by then you'll see a price of $200 per ounce." Gold recently broke through the $4,500 barrier, while silver has touched levels above $70, securing one of its best annual performances to date. Other metals, such as platinum and copper, have also experienced significant price appreciations.
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