Silver at All-Time High as Banks Predict $5,000 Gold in 2026

Daily News Nuggets | Today’s top stories for gold and silver investors 
December 1st, 2025 

Silver Hits Fresh Record (Over $57/oz) as Supply Squeeze Tightens 

Silver touched a new all-time high of $57.86 per ounce Monday morning, extending a rally that’s seen the white metal surge nearly 90% year-over-year. Traders are pricing in roughly 80% odds of a December Fed rate cut, but the real story is in physical markets: London vaults, the backbone of global silver supply, have seen inventories plunge by nearly a third since 2022. The shortage has grown so acute that some traders are resorting to air freight rather than cargo ships to meet delivery demand. 

Unlike gold, more than half of silver’s demand comes from industrial applications — solar panels, EVs, and AI components — and the Silver Institute projects 2025 will mark the fifth consecutive year of supply deficits. With borrowing costs for the metal elevated and haven demand strong, silver’s rally reflects both tight fundamentals and macro tailwinds that aren’t fading. Gold investors are riding the same wave. 

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Gold Climbs to Six-Week High on Rate-Cut Optimism 

Gold pushed near $4,250 per ounce Monday — its highest level since late October — as investors bet the Federal Reserve will deliver another rate cut later this month. A weaker dollar and renewed safe-haven demand supported the move, with UBS analysts projecting gold could reach $4,500 by year-end and $4,900 by late 2026. Central banks continue diversifying reserves away from dollar-denominated assets, while private investors have poured into gold ETFs at levels well above earlier forecasts. 

Despite gold’s 60% gain over the past year, investment demand shows no signs of slowing—a reflection of lingering concerns about government debt, geopolitical risks, and the Fed’s policy path. As one strategist put it, gold remains “one of the most optimal hedges” for the unusual combination of risks facing markets right now. But for gold miners, rallies alone don’t solve every problem. 

Barrick Gold Considers Breaking Up After Merger Underperforms 

Barrick Gold, the world’s second-largest gold producer, is exploring a potential split that would separate its North American assets from operations in Africa and Asia — effectively unwinding its $6 billion acquisition of Randgold Resources in 2019. Investor frustration has been mounting: Barrick trades at just 5 times forward EBITDA compared to rivals like Agnico Eagle at 8 times, and its five-year return of 52% badly trails Agnico’s 142%. 

The Nevada operations alone could command a $35 billion valuation as a standalone entity, and activist investor Elliott Management has reportedly taken a major stake to press for change. Interim CEO Mark Hill has signaled plans to refocus on politically stable regions like Nevada and the Dominican Republic while divesting or spinning off assets in Mali, Tanzania, and Pakistan. The discussions underscore a broader challenge: even with gold at record highs, the market isn’t rewarding miners that can’t clearly articulate where value lies.  

And if Wall Street’s latest forecasts are right, the pressure — and the opportunities — will only intensify… 

Why Wall Street Is Eyeing $5,000 Gold in 2026 

Major banks including JPMorgan, Goldman Sachs, and Bank of America now see gold pushing past $5,000 per ounce sometime in 2026 — a milestone that would represent another 20-25% gain from current levels. The bullish case rests on a rare alignment: persistent central bank buying (averaging 1,000+ tonnes annually since 2022), expectations for further Fed rate cuts, and a weaker dollar that makes gold cheaper for international buyers. 

Central banks, particularly in emerging markets, have been diversifying away from dollar reserves at an accelerating pace — a trend that intensified after Russia’s reserves were frozen in 2022. JPMorgan projects $5,200-$5,300 by year-end 2026, while Goldman sees $4,900 as a base case with upside potential beyond that. The forecasts reflect what analysts are calling a “debasement trade” — investors hedging against currency erosion and mounting fiscal deficits. Back on Main Street, though, voters aren’t feeling the wealth effect… 

Trump’s Economic Messaging Collides with Voter Reality 

President Trump is doubling down on claims that prices are falling and inflation is “almost nonexistent” — but polling data and economic indicators tell a starkly different story. Inflation stood at 3% in September, the same rate as when Trump took office in January, and grocery prices are up 1.4% since then. Recent elections saw Democrats gain ground on affordability messaging, with voters giving Trump his worst economic approval ratings of either term: 61% disapproving on cost of living, according to Fox News polling. 

Treasury Secretary Scott Bessent has pointed to “core” inflation (excluding food and energy) as evidence of progress, but voters are experiencing cumulative price increases — the typical household is spending $1,043 more per month than in early 2021, according to Moody’s Analytics. It’s a familiar trap: just as Biden struggled when he insisted the economy was strong while voters felt squeezed, Trump now risks a similar disconnect by dismissing affordability concerns rather than acknowledging them. With tariffs continuing to push import costs higher, economists warn the inflation picture could worsen before it improves.