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Money Metals News Alert
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January 5, 2026
– Money Metals' well-stocked silver inventory situation is attracting
attention at a time when intense retail demand has wiped out most other dealers'
inventories.
To be sure, volume has been very high
over the past several weeks, coinciding with wild silver price moves and a global
supply crunch.
Silver rallied $4 higher again since
last night, and continues to trade at a premium in London and especially Asia,
with China (the second largest producer of silver) restricting exports of the
"poor man's gold" as of January 1.
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The steep silver premiums
in Asia have the effect of drawing in physical silver from other parts of the
world like a magnet, fueling overall price gains.
Given Money Metals strong
capitalization and robust inventory management system, virtually all products
remain in stock at Money Metals. Our primary challenge has been keeping up with
the overwhelming call volume and order fulfillment throughput.
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Meanwhile, the best value in silver
right now is pre-1965
silver dimes and quarters, available at Money Metals for $1 BELOW SPOT. Check
it out!
Phone lines are open at Money Metals,
but there are often wait times given the incredible demand coming in. Remember
that you can always order
online at MoneyMetals.com!
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Gold : Silver Ratio (as of
Friday's closing prices) – 59.1 to
1
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Is Rising Volatility Tarnishing Gold's
Appeal?
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We???ve seen some sharp price swings in
the gold market over the last couple of months. Should this diminish gold???s
investment appeal?
Volatility has increased without a
doubt, but it???s important to put it into context. Based on analysis by the World
Gold Council, we find that gold???s volatility is up from a low base and is broadly
in line with other assets and long-term averages.
Volatility measures the speed and
depth of price movements over time. Economists calculate volatility by computing
the standard deviation of returns (daily or monthly) over a specified time period.
When volatility is high, you will
observe larger and more frequent price swings (as we???ve seen with gold recently).
In a low volatility environment, price movements tend to be smaller, steadier, and
easier to predict.
Uncertainty and high levels of risk
tend to drive volatility higher. There was no shortage of those factors impacting
the markets in 2025, from tariffs to geopolitical tensions to inflationary
pressure.
Gold isn???t the only asset impacted by
volatility. Equities also charted significant price swings over the last year.
Meanwhile, U.S. Treasury volatility has dropped.
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According to the World Gold Council,
???On the whole, all asset class volatilities remain broadly in line with their
long-term averages.???
While gold???s volatility rose along
with its 64
percent gain in 2025, it remained well below levels seen during previous
periods of similar strong price performance. According to the World Gold Council,
???This suggests that, despite recent price strength, gold has moved in an
orderly manner.???
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Furthermore, when gold hit periods of
high volatility last year, the brief spikes quickly normalized. This underscores
gold???s resilience as a strategic asset.
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Gold in Your Investment
Portfolio
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Even with the modest
increase in volatility last year, gold still reduces overall risk in a diversified
portfolio. This is especially true given that there is a growing correlation
between bonds and equities. In the past, these assets tended to counterbalance
each other, with equities climbing in a more risk-on environment with strong
economic tailwinds, and bonds seeing gains when the economy gets wobbly, and
investors become more risk-averse.
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However, bonds have been behaving more
like risk assets in recent months.
As stocks and bonds correlate more
closely, it is increasingly important to include an asset in your portfolio that
tends to move in the opposite direction. Gold fits that bill.
This is why Morgan Stanley CIO Michael
Wilson recently came out with an
investment strategy that includes a 20 percent allocation to gold. Most
American investors have little to no exposure to precious metals.
As the World Gold Council pointed out,
???We know that gold has been an efficient source of portfolio diversification
with its low correlation to equities and fixed income assets.???
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???In this current
environment, adding gold to our hypothetical portfolio1 reduces the overall
portfolio risk. In fact, adding 5 percent of gold reduces the portfolio risk by
nearly 5 percent while its contribution to overall portfolio risk is negligible at
1.9 percent.???
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In summary, there was increased
volatility on the gold market last year, driven by heightened geopolitical and
macroeconomic risks. However, as the World Gold Council noted, gold???s long-term
behavior remained broadly consistent, comparable to that of other growth assets.
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???Against a backdrop
where traditional diversification benefits are waning, gold continues to play a
valuable role in reducing overall portfolio risk, reinforcing its importance for
investors seeking stability amid uncertainty.???
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This week's Market Update was
authored by Money Metals Contributing Writer Mike Maharrey.
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This copyrighted material may not
be republished without express permission. Offer only available through email
promotion. Offer does not apply to previous orders and may not be combined with
any other offer or program. Special shipping rates or other restrictions may apply
to international orders. The information presented here is for general educational
purposes only. Money Metals Exchange and its staff do not act as personal
investment advisors. Nor do we advocate the purchase or sale of any regulated
security listed on any exchange for any specific individual. While our track
record is excellent, investment markets have inherent risks and there can be no
assurance of future profits. You are responsible for your investment decisions,
and they should be made in consultation with your own advisors. By purchasing from
Money Metals, you understand our company is not responsible for any losses caused
by your investment decisions, nor do we have any claim to any market gains you may
enjoy. Money Metals Exchange is not a regulated trading ???exchange??? as defined by
the CFTC and the SEC.
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