This Week:
Estimated reading time: 6 minutes
📊 Weekly Price Overview – 2 September 2026
Precious metals pulled back sharply this week, giving up much of last week’s gains. Both remain above important support levels.
🟡 NZD gold fell $425 (-5.46%) to $7,352
NZD gold gave up last week’s gains after hitting its uptrend resistance line. The lows still look likely to be in, with the 50-day moving average offering potential support.
USD gold fell $316 (-6.81%) to $4,328
USD gold pulled back after hitting resistance around $4,750. The $4,000 area still looks like an important bottom, with dips offering buying opportunities.
⚪ NZD silver fell $5.82 (-5.07%) to $109.06
NZD silver pulled back after nearing its 200-day moving average and downtrend line. This is one of the dips we’ve been watching for as a potential buying zone.
USD silver fell $4.40 (-6.42%) to $64.20
USD silver turned lower from its 200-day moving average. The $55 support area still looks like a likely bottom, with this pullback offering a long-term buying opportunity.
💱 NZD/USD fell 85 basis points (-1.42%) to 0.5887
The Kiwi dollar pulled back after nearing its downtrend line from 2021. Despite recent strength, it remains in a long-term downtrend. A break above 0.61 could signal a trend change.
Silver Has Surged — But Is It Still Worth Owning?
Silver has had quite a ride.
After climbing 147% in US dollar terms during 2025, silver surged to a record high in January this year — before falling sharply again.
So after such a dramatic move, does silver still make sense to own?
This week’s featured article looks at the case for owning silver in New Zealand, including:
- whether silver still looks undervalued,
- what’s happening with industrial demand and supply,
- how it compares with gold,
- and some mistakes to avoid when buying it.
Read: Why Buy Silver? A Guide to Owning Silver in New Zealand
Gold’s Share of Global Reserves Keeps Rising
Back in June, we looked at data showing that gold had overtaken US Treasuries as an individual global reserve asset.
This chart from the In Gold We Trust Report shows the longer-term shift.
Gold’s share of global reserves fell sharply during the 1980s and 1990s as fiat currencies and government debt became dominant.
That trend has reversed. Today, gold once again makes up roughly a quarter of global reserves.
As we reported back in August, China continues to add to its gold reserves.
The People’s Bank of China reported buying 20 tonnes in July — its largest monthly addition since October 2023.
Chris Weber points out that October 2023 was also around the start of the previous major leg higher in gold. He wonders whether China’s renewed buying could signal that the recent precious-metals correction is ending.
More significant is China’s longer-term shift from US Treasuries towards gold. Weber sees this as part of China’s gradual effort to reduce its reliance on the US dollar-based financial system.
But Weber highlights another, less-discussed part of China’s strategy.
China Is Also Taking Silver Seriously
Unlike gold, silver also has substantial industrial demand.
Its high electrical conductivity makes it useful in solar panels, electric vehicles, data centres, electronics and other technologies.
Weber argues that China recognises the strategic importance of silver. He points to China’s large role in refining and tighter controls over silver exports.
Whatever you make of Weber’s conclusions, silver demand isn’t dependent solely on investors. Industry needs it too.
Silver therefore has thousands of years of monetary history while also being consumed by some of the fastest-growing areas of the modern economy.
And there’s another important feature of silver.
Silver Is a Very Small Market
Nick Giambruno recently made a provocative argument in an article shared by Doug Casey:
“There’s only one reason to own silver.”
Surprisingly, his reason wasn’t industrial demand or silver’s history as money.
Giambruno is interested in what can happen to silver during monetary stress — largely because the market is so small.
The chart below puts that into perspective.
Source: Nick Giambruno
According to the figures shown, the combined market capitalisation of silver stocks is around US$66 billion, compared with US$750 billion for gold stocks.
By comparison, Amazon alone is valued at US$2.8 trillion, with Microsoft, Apple and Nvidia larger still.
Giambruno argues that even modest investment flows into such a small market can have a large effect on prices.
He describes silver as a “call option on inflation and monetary chaos.”
That is speculative, but it highlights an important difference between gold and silver.
Gold’s larger market can absorb substantial investment flows. Silver can move far more violently when investment demand surges.
And that works in both directions.
Silver can rise much faster than gold during a precious-metals bull market. It can also fall much harder when sentiment turns.
That’s why we don’t view silver simply as a cheaper version of gold.
Silver Can Be Both Insurance and Opportunity
Silver sits at the intersection of monetary, industrial and investment demand — all within a relatively small market.
None of this tells us where silver will trade next month or next year.
But it does explain our view:
Gold is primarily wealth insurance. Silver can offer both insurance and opportunity.
That’s the thinking behind this week’s updated guide to owning silver in New Zealand.
Read: Why Buy Silver? A Guide to Owning Silver in New Zealand →
Thinking about adding gold or silver to your holdings? Get in touch — we’re happy to help with any questions.
Glenn's dedication to educating individuals on wealth protection through precious metals has helped over 2400 clients from New Zealand, Australia, USA and Europe to safeguard their financial futures. Passionate about financial independence and lifestyle freedom, Glenn’s mission is to empower others with the knowledge and tools to thrive in today’s volatile economic environment. When he's not advising on precious metals, Glenn enjoys spending time with his family and pursuing outdoor adventures.
Education: University of Auckland Bachelor of Science
Linkedin: https://www.linkedin.com/in/glenn-thomas-0984a4310/
- What Is the Gold Silver Ratio? What Is It Telling Us Now? - September 8, 2026
- China Is Buying Gold — But Its Silver Strategy May Be More Interesting - September 2, 2026
- Why Buy Silver? A Guide to Owning Silver in New Zealand - September 1, 2026
