Column By Natalie Pace
On Friday, Jan. 30, 2026, silver plunged by -32%, while gold prices were off by -15%. That sounds terrible. However, put into context, silver is still up 157% year over year, while gold is up 70.0%. Silver was the best performer of 2025, followed by our Peru ETF pick (EPU), which is up 115%. Having said that, the plunge is a reminder that precious metals are volatile, and that we should have a plan in place that puts us on the right side of that trade. That’s exactly what our pie chart wealth plan strategy with 1-3 times a year rebalancing does. (If you’re chasing headlines, you’re late. It’s a losing proposition.)
Here are the things that I’ll cover in this blog.
The Worst Day Since 1980
Big Picture Context
What Should You Do Now?
Hot Slices and Proper Diversification
Rebalancing
Will Precious Metals Rally or Retreat?
Still Have Questions?
And here is more information on each topic.
The Worst Day Since 1980
January 30, 2026, was the worst day for silver since 1980. The instant correction is a reminder that investing in gold and silver comes with a risk of loss. The myth is that they never go down in value.
What happened after the plunge in 1980? Gold dropped from $850/ounce to $350-$450 and stayed in that range for a quarter of a century! Gold’s low in that cycle was $252/ounce in 1999. Prices finally started to recover in the 21st Century, hitting a new high of $1,923.70 in September of 2011, after S&P Global stripped the U.S. of its AAA credit rating (August 5, 2011).
The credit downgrade alarmed Main Street – something the Wall Street whales capitalized on. While many retirees poured their life savings into gold IRAs at an all-time high in 2011, gold prices began a sustained dive to losses of -45.6% by December 2015, down to $1,046.25/ounce. Gold prices did not return to their 2011 highs until August of 2020.
While you might think that everything came up roses with gold at $4,889/ounce today, most people cannot afford to lose almost half of their wealth for a decade. The fallout of that disaster floods every part of our lives.
Big Picture Context
Both gold and silver were super performers over the past year. As I mentioned above, even with the pullback, gold is still up 69%, and silver is still up 164%. While it’s human nature to wish that we had captured gains last week, it’s unrealistic to expect that we are going to bat a thousand. We are rarely going to hit any investment on the head, buying at the exact low and selling at the pinnacle. In fact, our emotions will always steer us away from those goals. When prices are low, the asset is not popular. When prices are high, we think the party will last forever.
What Should You Do Now?
Friday’s correction is a reminder that buying high is really a bad idea. Equally important, when we have an investment that quadruples in a year, as silver did between Jan. 1, 2025, and Jan. 23, 2026, it’s a great idea to rebalance and capture gains.
If you are not invested in gold and silver and you’re tempted to buy on the dip, it’s a good idea to know what an age-appropriate, properly diversified plan looks like, rather than shooting from the hip. Once you know how much you should invest in each ofthe ten at-risk slices, dollar cost average into any asset that is trading at or near an all-time high, as both gold and silver are. It is important to acknowledge that even with the pullback, silver and gold prices are elevated.
Hot Slices and Proper Diversification
So, what does an age-appropriate, properly diversified plan look like? (See the pie chart below for a sample.) We have free web apps where you can personalize your own pie chart. Email info@NataliePace.com for the links.
The rule of thumb in my time-proven 21st Century nest egg strategy is to…
- Keep a percentage equal to our age safe.
- Diversify the at-risk side into 10 different funds.
- We like to include four hot slices in our funds.
- Rebalance 1-3 times a year.
If you have one hot slice of gold or silver that becomes two, three, or four slices, then the system is prompting you to sell high and capture gains. Trim the slice back to where it should be. Again, if you do not have exposure and you would like to, it’s a good idea to dollar cost average instead of buying the entire slice’s amount at a high price.
Rebalancing
Rebalancing once, twice, or three times a year is the best strategy for capturing gains and increasing our wealth. Now might be a great time to capture gains and trim your slices back to where it should be. That way, you keep your wealth if the rout continues. In the event of continued weakness, you can buy more at a lower price, instead of watching your wealth evanesce.
If you think the gold/silver run is over, then simply pick a different hot sector to invest in (capturing gains near an all-time high).
Will Precious Metals Rally or Retreat?
Goldman Sachs has called gold its favorite of the precious metals. I’ve been saying silver is my favorite and that bet has paid off quite a bit more than gold has, as I’ve already discussed in the points above.
When we consider what is really behind the rally in gold (and its sibling silver), there’s a case to be made for being bullish, even with elevated precious metals’ prices. People like gold and silver when they lose faith in stocks and or the dollar or when there is geographic or political uncertainty. With all the wars going on in the world, elevated social unrest in many different countries, weakening of the U.S. dollar, and the attempts by the BRICS countries to break free from the dominance of the dollar on the world stage, these sentiments bode well for gold. It does not mean we should go all in on gold for the reasons that I’ve outlined above. (If we enter an Apocalypse it will be easier to trade food or fuel than gold.)
One of the reasons that I’m still leaning into silver is that the metal is used in AI, EVs, solar, and data center cooling. On Nov. 7, 2025, the U.S. Department of the Interior placed silver on its Critical Minerals List. Some analysts are saying that constrained supply combined with high demand will continue to cause a “melt-up” in silver prices.
Some analysts warn that silver could crash back to $50 later in 2026, or that if gold breaks the $4000-$4,200 support threshold, a deeper, more enduring correction could ensue. Volatility will continue this year, due to profit-taking and margin requirements. However, given the strong consumer and industrial demand, it is likely that the overall trend could still be up.
Nothing is assured in today’s world, which is why it is so important to keep a percentage equal to our age safe (at minimum) – in income-producing assets that keep our principal intact, and to keep our at-risk investments diversified and age-appropriate. We spend one full day on “What’s Safe?” at our Financial Freedom Retreat. I just hosted a Rebalancing masterclass. (Ask for access to the recording when you register for our Financial Freedom Retreat.)
Still Have Questions?
Do you still have questions? If so, email info@nataliepace.com. Be sure to follow me on my social media channels so that you are up to date on all the important news and have access to money solutions and prosperity training. If you are interested in time-proven 21st-Century budgeting and investing strategies, be sure to join us at my life-transformational online retreats and masterclasses.
Do you have a money question, crisis, or opportunity? Let us know. We’ll send you over resources. Your question might be answered in a free blog or a videoconference. Housing is unaffordable, so this is a topic that I talk about quite a lot.
Bottom Line
Even with the notable plunge that gold and silver took last week, both assets are still on fire over the last year. People who invested in 2025 (or prior) are in a position to capture gains. Those who missed the rally and would now like to own these precious metals, or buy the dip, should consider dollar cost averaging. That way if the price goes lower, you’re able to buy it a lower price instead of losing money.
Are you aware that the hot funds we’ve been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Silver tripled. Peru (copper) was on fire with over 100% gains. Even clean energy scored 55%…
Why not treat yourself to the gift of financial freedom to create a New Year, New Me in 2026?
Register now to join us at our online Financial Freedom Retreat April 24-26, 2026, where you’ll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto, and more, and how to be in the best seat during our volatile Debt World. Register by Feb. 28, 2025, to receive the best price. Email info@NataliePace.com to learn more and register now.
