It's the first day of trading of 2026, and, as of 8:00 am ET, everything is coming up roses!
Stock futures are higher. Dow futures: +187; NASDAQ futures: +240; S&P futures: +38. Gold hit $4,400 overnight; silver topped out at $74.59 on the spot market, but Mr. Slammy (COMEX shorts) is in the house. The CME has now raised margin requirements twice in the past week.
On December 30, 2025, CME announced a second round of higher initial margin (performance bond) requirements for precious metals, effective after the close on December 31. Reported increases were roughly +9% for gold, +30% for silver, +25% for platinum, and +22% for palladium. CME’s stated reason was a review of volatility “to ensure adequate collateral coverage.”
The CME is afraid of losing its franchise, simply put, the ability to control the prices of precious metals so that the almighty U.S. dollar won't be seen as a debased, soon-to-be extinguished fiat currency. The marching orders come directly from the private banking interest at the Federal Reserve, the world's greatest power in banking, able to conjure money (actually currency) out of thin air.
The Federal Reserve is a counterfeiting organization, whose power in the world of finance is threatened by any competing currency, mostly the entities that have served as honest money since the dawn of civilization, gold and silver. Rising prices of the precious metals indicate the weakening influence of Federal Reserve and the U.S. dollar. This is not surprising, given that the United States, along with the European Union, seized Russian assets valued roughly at $300 billion in February, 2022, and has thus far refused to return them. Recently, the EU debated the permanent confiscation of those assets, but failed to pass a resolution to do so, encountering stiff resistance from a number of EU nations, particularly, Belgium, Hungary, Italy and Europe’s major clearing house known as Euroclear.
Russia has countered with lawsuits in various jurisdictions which could take years to resolve. In the meantime, the U.S., E.U. and its allies in the banking sector have lost credibility and the trust of other countries and their central banks, the rationale being that if the U.S. and the E.U. could unilaterally seize the assets from a country with such powerful standing in the world as Russia, then what is to become of China, India, Indonesia, Brazil, and lesser countries such as Thailand, Kenya, or Saudi Arabia.
International banking and finance, beyond anything else, relies upon trust and confidence in counter-parties. The U.S. and E.U. made a grave miscalculation in seizing Russian assets and has exacerbated their losing position with round after round of sanctions on the Russian Federation and its major trading partners. The sanctions regime, now in its 20th round, has failed to weaken Russia or its partners. Sanctions and the seizure of Russian assets have only stiffened the resolve of BRICs and associated nations to seek alternatives to trading in U.S. dollars or euros issued by the corrupt E.U.
With resolution of the conflict in Ukraine still unresolved, 2026 appears to be a pivotal time for international finance and global economics. The BRICS have shown they will not abide by Western sanctions and are committed to trading freely amongst themselves and their associate nations. The momentum of this movement away from Western "rules-based order" of fiat currencies and sanctions against those who dare to cross the line of Western hegemony has been building for years and is likely to reach a point of no return in 2026. A polarizing split between East and West is accelerating towards a multi-polar international regime. In fact, this split has already materialized, manifest in bi-lateral trade between parties in the East, or in the "Global South." The United States and European Union are being marginalized and excluded from international trade and finance. Their unwillingness to seek rational solutions underscores their innate fear of losing control over money. There is little subtelty about gold and silver pricing as the world enters a new year. They can be seen - rightfully so - as the tip of the spear in the global war over resources and money. The West continues its decades-long practice of price suppression via the derivative market. The East seeks price discovery in a physical market.
This struggle, which has already been playing out over the past few years, but particularly in 2025, as silver spiked 170% and gold was up more than 60%, will be te defining issue of this year and probably the next three to five. Much of the world, especially in emerging markets, now sees the detriments and unfairness of the Western fiat currency regime clearly and will continue to seek a better way. The world has grown weary of oligarchs, wealth inequality, and theft of wealth by inflation, the curse of debasing currencies.
The nature of money and the trust, honesty, and reliability of trading partners will be at the root of all of global finance in 2026. May your investments be profitable and great in 2026.
Happy New Year!
At the Close, Wednesday, December 31, 2025:
Dow: 48,063.29, -303.77 (-0.63%)
NASDAQ: 23,241.99, -177.09 (-0.76%)
S&P 500: 6,845.50, -50.74 (-0.74%)
NYSE Composite: 22,003.93, -144.15 (-0.65%)
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