On Jan. 29, (spot market) gold reached a record above $5,600 a troy ounce before settling back a little. On the same day, spot silver per ounce traded at a record $121; the three-month copper contract soared on the London Metals Exchange above $14,000 per metric ton for the first time in history, reaching as high as $14,268 (copper had just broken the $13,000 mark on Jan. 6). On Jan. 26, platinum rocketed to its all-time high of $2,878.
Nickel and aluminum are also hitting very high levels (but not record levels).
There are two primary reasons for these unprecedented jumps, though they differ. First, there is the unwinding of the Japanese yen carry trade, in which investors borrow in Japan at lower interest rates, and then invest the borrowed money around the world, in markets where the interest rates (and rates of return) are higher. Except that the rates on Japanese bonds have risen from about 1% in January 2025 to 1.95 to 2.35% in January 2026, making borrowing in Japan not so cheap and endangering the basis of the ¥1- to ¥2-trillion carry trade, which could produce significant losses. There is also great concern about the derivatives market, the U.S. Treasury bond market, and the ballooning of the U.S. household and corporate (outstanding) debt markets.
There is also concern over the breakdown of international law and reckless actions by the U.S. President, which could lead to nuclear war.
Second, speculation is increasing as people seek quick returns from the casino bubble.
