By The Light Of the Slivery to the Moon. Manic Metals Report 01/13/2026

By the light of the silvery moon, melt down your spoons To my honey, you’ll pay your rent till the month of June.
Yes, the silver breakout continues in dramatic fashion, driven by concerns that China will continue to restrict supplies and a potential structural shortage. This comes as Citi has raised their forecasts for both gold and silver prices, and they expect the bull market in silver to be intact for at least the early part of 2026, targeting $5,000 an ounce for gold and joining my call for $100.00 an ounce on silver. Citibank says heightened geopolitical risk, ongoing physical market shortages, and renewed uncertainty on Fed independence after the investigation into Fed Chairman Jerome Powell for lying to Congress.
Now, after the CPI Core U.S. consumer prices rose less than predicted in December, silver took off yet again—fueling excitement that inflation really is cooling as the Federal Reserve weighs its next move on rates. The main quote stands: excluding the volatile food and energy components, the consumer price index logged a modest 0.2% monthly gain and 2.6% annually. That’s 0.1 percentage point below what analysts expected! Even though both metrics matter, Fed officials see core inflation as the more reliable signal for long-term trends. On the headline side, CPI ticked up 0.3% for the month, putting the all-items annual rate at 2.7%, both matching the Dow Jones consensus. The silver rally’s pulse is quickening—these numbers are keeping hopes alive for a softer inflation path and a dovish Fed pivot!
Silver the  “poor man’s gold” that’s anything but poor right now.  Silver is shattering records, blasting past $84 per ounce and eyeing even higher ground. We’re talking a mind-blowing 180% rally from early 2025 levels around $30/oz, with intraday highs hitting $85.75 just yesterday.
But why now? Let’s break it down with a nod to history’s wild rides and the current news that’s fueling this breakout. Silver has a storied history of explosive surges, often triggered by a cocktail of supply squeezes, industrial booms, and monetary mayhem. Remember the infamous Hunt Brothers saga of 1980? Back then, Texas oil tycoons Nelson Bunker and William Herbert Hunt tried to corner the market, driving prices from about $6/oz to a staggering $50/oz in just months – a 700% spike! It was pure chaos: geopolitical tensions from the Iranian Revolution, soaring inflation (peaking at 13.5% in the U.S.), and a rush to hard assets as the dollar weakened. The breakout ended in a infamous “Silver Thursday” crash when regulators stepped in, but it set the template for silver’s volatility – when physical demand outstrips paper games, prices go parabolic.
Fast-forward to the post-Global Financial Crisis era. After bottoming around $13/oz in 2009, silver erupted post-crash, rocketing to nearly $50/oz by April 2011 – a 285% gain in two years. What lit the fuse? Quantitative easing flooded markets with liquidity, inflation fears ran rampant, and industrial recovery supercharged demand from electronics and solar panels. It was a classic breakout from long-term consolidation, breaking multi-decade resistance as investors fled fiat currencies.
More recently, silver’s 2025 surge – doubling to over $70/oz by year-end – echoes these patterns. It shattered the $50 barrier (a 45-year high from the Hunt days) in October 2025, then powered through $60 and beyond. Technicals tell the tale: decisive breaks above double-tops around $54.50, with momentum carrying it into uncharted territory. History shows these breakouts aren’t random – they’re born from structural imbalances that build quietly before exploding. And folks, 2026’s setup is eerily similar, but with even bigger tailwinds.
Flash to today, Silver’s spot price is hovering near $84.72, up 7% in a single session, with futures pointing to more upside. This isn’t hype – it’s a perfect storm of fundamentals, macro pressures, and geopolitical fireworks. Let’s unpack the news driving this.
First, industrial demand is off the charts – and it’s inelastic. Silver isn’t just a shiny hedge; it’s the backbone of modern tech. Solar panels alone gobbled up record amounts in 2025, with the International Energy Agency forecasting solar capacity to quadruple by 2030. Add EVs, AI data centers, 5G, and electronics, and you’re looking at demand hitting 1.2 billion ounces annually against just 1 billion in supply. Samsung’s new silver-based solid-state batteries? Game-changer – prototypes in 2026 could mean 2.2 kilos of silver per EV battery, boosting range to 550 miles and charging in 9 minutes. Demand like this doesn’t flinch at higher prices; experts say it’s price-inelastic up to $125/oz.
Then there’s the supply crunch turning critical. We’re in year five of deficits, with 2026 projections showing another 30-150 million ounce shortfall. China, controlling 60-70% of refined supply, slapped export controls on January 1, 2026, requiring licenses for shipments – a move that’s already sparking fears of force majeure shocks. U.S. inventories are shifting from London to COMEX vaults amid tariff jitters, creating regional bottlenecks and “metal stuck in the wrong places.” The U.S. even bumped silver to a Tier 1 critical mineral, underscoring its strategic importance.
Macro-wise, safe-haven flows are pouring in amid Fed drama and global tensions. Federal prosecutors’ criminal probe into Chair Jerome Powell has rattled markets, questioning central bank independence and sparking a flight to safety. With gold at $4,563/oz, silver’s outpacing it, compressing the gold-silver ratio and signaling relative strength. Weak U.S. job data? More rate-cut bets, weakening the dollar and boosting commodities. Geopolitics – from Iran ops to Greenland crises – add fuel. Even sovereigns are in: Russia stockpiling, India remonetizing silver at 10:1 ratios, and ETFs seeing 40% inflow surges.
Don’t forget the debasement angle. U.S. debt interest payments nearing 5% of GDP scream for lower rates (maybe to 1%) and yield curve control. Real yields near zero? Perfect for precious metals. Banks flipping net long on silver? The old suppression playbook is toast.
History’s breakouts lasted years, not months – and 2026 could see silver test $100-$130, with some eyeing $150+ if shortages bite hard. Volatility? Sure – Goldman warns of “extreme swings” from inventory shifts. But fundamentals scream upside: physical trumps paper, and this rally has legs.
Gold continues its remarkable bull run, trading near all-time highs in the $4,590–$4,620 per ounce range today, with recent peaks touching $4,630+.  Gold remains supported by persistent geopolitical risks, central bank buying, and inflation hedging demand. After a stellar 2025 (up over 70% year-over-year), analysts widely see potential for $5,000 (or higher) in 2026, driven by ongoing macro uncertainties—though some expect short-term consolidation or profit-taking ahead of key data like U.S. CPI but now should rally.
Platinum is showing strength in the precious metals complex, hovering around $2,340–$2,390 per ounce with solid monthly gains (up nearly 30%). It benefits from tight supply, robust industrial demand (e.g., autocatalysts), and spillover momentum from gold/silver rallies. The metal has seen massive yearly appreciation (over 150% in some benchmarks), and market deficits point to continued upside potential in 2026.CopperCopper is pushing higher amid structural supply concerns, trading near $6.00–$6.04 per pound (or roughly $13,200+ per tonne on LME), close to recent record levels. It’s up about 12% over the past month and nearly 40% year-over-year, fueled by electrification trends, data center/AI demand, and projected global deficits in 2026 due to mine delays and underinvestment. This “Dr. Copper” indicator reflects optimism for industrial growth, though volatility persists.Overall, precious and industrial metals remain in a bullish phase early in 2026, supported by macro tailwinds, supply constraints, and risk-off sentiment in broader markets. Watch upcoming U.S. inflation data for potential shifts—stay tuned!
Stay tuned, traders – silver’s not just breaking records; it’s rewriting the commodity playbook. If you’re in energy or metals, hit me up on X @EnergyPhilFlynn. Until next time, trade smart And state Fox Business Network because they’re the only network in America that’s invested in you. Call dated reports at 888-264-5665 or e-mail me at pflynn@pricegroup.com.