The start of 2026 has seen gold and silver surge to record highs – only to crash on Friday.

Gold prices peaked above US$5,500 (A$7,900) per ounce for the first time on Thursday, well above previous highs. But by the end of Friday, it had dropped to around US$5068 (A$7,282).

Silver had been making gains even faster than gold. It hit more than US$120 (A$172) per ounce last week, marking one of its strongest runs in decades, before crashing on Friday to US$98.50 (A$141.50).

So what’s behind those surges and falls? And what should everyday investors know about the risks of investing in precious metals right now?

Gold is the classic safe haven: an asset people buy to protect their savings when worried about financial risks.

With international political tensions rising, trade war threats, shifting signals about where interest rates are heading and a potential changing world order, investors are seeking assets that feel stable when everything else looks shaky.

Friday’s crash in gold and silver was sparked by financial markets reacting to early news of Donald Trump’s nomination of Kevin Warsh as chair of the US Federal Reserve. The US central bank plays a key role in global financial stability.

Central banks around the world have been buying gold at a rapid pace, reinforcing its reputation as a place to park value during periods of uncertainty.

But it’s not just big institutions moving the........

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