A Review of Gold and Silver from the First Half of 2026

The first half of 2026 is in the review mirror now.  Let’s look back to some key points.

• It appears that China is taking another serious step to create a sound gold role in its monetary system. Several of its largest financial institutions are halting the retail trading of paper-gold.  Observers say the intention is encourage physical ownership—not financial speculation—as the foundation of its gold market.

• Because of its growing role in the global economy and driving change in monetary conditions, keeping an eye on China is important.  Through April its central bank added to its gold reserves for 18 consecutive months, increasing official holdings to over 2,300 tons. 

• Altogether the world’s central banks added 244 tons of gold in the first quarter of 2026, according to the World Gold Council.

• As we reported, gold entered 2026 having surpassed U.S. Treasury securities to become the world’s largest reserve asset by market value. Gold represented roughly 27 percent of official global reserve assets compared with 22 percent for U.S. Treasuries.

• U.S. inflation rates are on a tear.  The Consumer Price Index rose 0.5 percent in May.  That, annualized over 12 months, would yield 6.17 percent consumer price increases.

• The Producer Price Index climbed 1.1 percent in May.  The May PPI inflation rate annualizes to over 16 percent. 

• The U.S. national debt is major determinative of the American people’s prosperity as well as a harbinger of much higher gold prices.  The May U.S. Senate Joint Economic Committee report reveals that the gross national debt grew by 2.7 trillion from May 2025 – May 2026.  The gross national debt per household has grown to $288,676.  That is $113,792 per person.