Yesterday the silver price on the Shanghai market closed at 131.26, and the comex closed at 114.66, a 16.6 USD difference. The Shanghai market is a physical market and the Comex is largely a paper market. One wonders why the paper trades lower than the physical, who benefits and what is there to gain.

Many trading companies have already succumbed to market changes and to the failure of any price suppression attempts.

Around 44 silver trading firms in Rajkot (Gujarat) reportedly became insolvent after being caught in a severe short squeeze when silver prices rose sharply beyond expectations. These traders were unable to settle liabilities totalling roughly ₹3,500 crore ($381 million), after prices climbed past local price caps and settlement differences ballooned.These were largely small/medium trading firms rather than large industrial corporations. But the crisis spread beyond India. 

With a market so heavily reliant on paper, it will be interesting to see the full effect of this rally. As Buffet says, “it is only when the tide goes out do you discover who’s been swimming naked”.

In response to the increase in volatility, increased margins were implemented by the CME group.

In mid-December 2025, the CME Group (which operates the COMEX) raised margin requirements on silver futures by about 10% as volatility increased.This hike moved initial/maintenance margins from roughly $20,000–$22,000 to around $22,000 for the standard 5,000-oz silver contract.

Around December 26–29, 2025, the exchange widened margins further: the maintenance margin moved to roughly $25,000 per contract, with initial margins often higher depending on account type.

Some reports indicate cumulative increases of ~20–30% in margin requirements within just a few weeks at the end of 2025.
As of early 2026, sources report that maintenance margin levels for COMEX silver futures have gone as high as about $32,500 per contract for outright positions, with initial margins proportionately above that for speculative accounts.

There has been a shift to a percentage-based margin model of 9% tied to notional contract value rather than fixed dollar amounts. 

• It appears that this is not working. The fixed contract amount for March is said to be $55.000.00
  Higher margins mean more capital is required to hold positions, especially for leveraged traders. This can force some participants to liquidate if they can’t meet margin calls. During sharp price rallies exchanges frequently raise margins to control risk and ensure orderly clearing. I cannot vouch for the authenticity of protection of the participants, rather than the banks.
  

These increases often coincide with short-term price volatility because traders who can’t post extra funds either reduce positions or get liquidated. 

The most secure  way under these circumstances is to hold the physical metal, where one is not subject to margin calls or leverage or the possibility of non delivery on the contract.

We have been asked by a lot of clients this week if we are in a bubble or this is the top in silver. Our opinion is that until the fundamentals change, we are staying in our positions. It is our opinion that this is a repricing event, not a speculative bubble. Fiat currencies are being repriced against physical, apolitical, non sovereign money. 

Looking at the silver charts they are screaming for a correction. I would love to see a reasonable correction or at best a reasonable consolidation for my own peace of mind.

I am seeing more analysts calling for $200.00, I think this is a very conservative estimate. We have some clients saying 4 digit silver price is possible, only one or two. But I know of no bubble where everything thinks or says it is a bubble. Bull markets climb a wall of worry. Bubbles are never seen until seen in hindsight. The fear we are seeing says we are still in the infancy of this run and maybe we will indeed see $1000 silver before it is over.

Another interesting conversation we had in the office this week was the following: If we cast our minds back 2 years and describe the world as we would imagine it if gold was $5500 an oz, it was one of chaos, ww3 ongoing, trade wars, a really bad picture. The fact that we have reached that price without anything being visibly broken, is alarming and also comforting, because what will prices look like if those scenarios unfold ? $30 000 gold becomes a probability in a real bad scenario. It is always said that markets go further and faster than we expect. 

The question then becomes: What are we not seeing? I think these contributing factors, the collapsing dollar, the potential for widespread war, a definite economic war, with tariffs, restrictions, side deals etc. Realignment with new partners.

PLATINUM

SELL: On the Daily chart (26 January 2026)

URANIUM

BUY (02 January 2026) URA.

BITCOIN AND GOLD

Gold outperforms bitcoin  (18 December 2025).  16.58 one ounce gold coins buys one bitcoin, this was over 41 ounces almost a year ago. It appears that bitcoin is reversing. I could call a reversal here except that the chart is already overbought. It is worth waiting a while.

ETHUSD: SELL: (18 January 2026)

BTCUSD: SELL: 19 January 2026.  NASDAQ (Cyan).

GOLD AND SILVER STOCKS

This week I put in an order for some speculative silver stocks and some more traditional gold and platinum stocks. I feel I am a little late with the gold stocks as they have performed well as the price of gold has risen, but in view of the current geopolitical circumstances, I feel there is still room to run. 

28 January 2026 Gold about to outperform gold stocks.

Silver outperforms silver stocks (08 December 2025). An early signal.  The spike high is a worry but the signals are not giving a sell yet. Time to buy silver stocks.

GOLD AND SILVER

Silver to Gold Ratio

Silver outperforming Gold. (07 November 2025)  Silver is coming out of the ground at about 8:1 and the Gold: Silver ratio is 46.18:1. Silver is still a great buy at this time, even over $100.00 The ratio is falling showing the strength of silver against gold.

GOLD TO USD

Gold outperforms USD, (12 January 2026). Gold popped in value against the dollar.

A LOOK AT THE GOLD AND SILVER CHARTS

Gold’s low of the week was $4,986.00 and the high was $5,597.00 now trading at around $5,520.00.

• Gold Monthly:  is a HOLD. We bought at $1,800.00 in October 2023.  Looking overbought, but it can hold that situation for a while. No sell signal yet.

• Gold Weekly:  (HOLD 25 August 2025)   Overbought. No sell signals yet.

• Gold Daily: (HOLD: 12 November 2025).  The indicators are holding.

The low for Silver this week was $101.55, and the high $120.42, trading around $119.16 at present. 

• Silver Monthly: Hold. (Buy:  $24.00 March 2024). Looking overbought. No sell signal yet.

• Silver Weekly: (HOLD: 25 August 2025). Overbought but still positive indicators.

• Silver Daily: HOLD (12 January 2026).

Our partner has stock of both gold, silver and Goldbacks in our vaults available in Panama. Please contact us for more information.

A video by Mike Adams on the Goldbacks. 

Well worth a look!

On the Stockcharts.com charts, the blue vertical lines are our proprietary system buy signals and the red vertical lines are system sell signals – for information purposes only

An interview with Josh, owner of Scottsdale Mint:

Please contact us to arrange the purchase and storage of your gold and silver requirements in a safe, insured location outside of your jurisdiction.

If you are interested in an overview of Fort Kobbe, you may want to have a look at this video: Mike Brown, Director, Fort Kobbe, International Vaults, A DotCom Magazine Exclusive Interview

This is my interpretation of the market and is not to be taken as financial advice. Before making any buy or sell decisions I recommend that you consult with your professional financial advisor.