The recent surge in precious metals prices has been nothing short of extraordinary, with silver breaking $100 per ounce and gold reaching $5,000 per ounce within the span of 24 hours. This unprecedented rally has sparked a flurry of questions about the long-term potential of these metals, and whether they are truly as valuable as their recent performance suggests.

To put these gains into perspective, silver is up an astonishing +94% and +31% in real terms since the start of 2025 alone. Gold, on the other hand, has seen a +279% increase over the same period. While these numbers are certainly impressive, they pale in comparison to the historical gains of these metals.

According to David Reid, silver has actually been lower in real terms as recently as January 9th, 2026 than it was in 1790. Similarly, gold has seen a +31% increase in real terms since the start of 1790. These numbers highlight the fact that while precious metals have certainly seen significant gains in recent years, they are not without their historical context.

So what drives the long-term story of precious metals? The answer lies in monetary regimes, inflation shocks, and investor fear cycles. As central banks around the world continue to print money and devalue their respective currencies, the value of gold and silver is likely to increase. Additionally, periods of high inflation or economic instability often lead to increased demand for safe-haven assets like precious metals.

While the recent rally in precious metals prices has been nothing short of remarkable, it’s important to keep things in perspective. The long-term story of these metals is about much more than just short-term price movements. It’s about understanding the underlying factors that drive their value and making informed investment decisions based on that knowledge.