Record prices, record demand, and real-world supply pressure are colliding in the precious metals market, and the cracks are starting to show.
On January 14, 2026, APMEX CEO Ken Lewis released a letter to customers that does something most bullion dealers avoid during bull markets: it openly acknowledges operational stress while explaining how APMEX is responding. APMEX is not only a retail dealer, but also a U.S. Mint Authorized Purchaser, market maker, and bullion wholesaler. This letter shows just how tight the physical gold and silver market has become.
For investors and collectors, this matters.
Summary of the APMEX CEO Letter
Ken Lewis confirms what many buyers are already experiencing firsthand:
- Gold and silver prices have hit record highs repeatedly
- Demand has surged sharply from both new buyers and experienced investors
- Physical supply is tight across the industry
- Order volumes are overwhelming fulfillment and customer service channels
What stands out is APMEX’s framing. The company acknowledges that this is an extraordinary demand environment, comparable to the most intense periods of the past 25 years.
Key actions APMEX disclosed:
- Extended shipping timelines
Estimated ship dates now include an additional 4 business days, up from the usual 1 day, reflecting real fulfillment capacity. - Production focus on core silver products
APMEX has narrowed minting operations to 31 core silver products, prioritizing restocking the most in-demand items. Inventory has already improved from fewer than 15 in stock to 21, with expectations to restore most shortly, assuming demand doesn’t accelerate further. - Pre-sales restricted
Most pre-sales have been turned off unless APMEX is confident the product can ship within two weeks. - Customer service expansion
Sales and customer service staffing has been increased by 25%, pulling talent from across the organization.
Current Conditions in the Bullion Markets
The bullion markets in January 2026 are in the midst of a remarkable rally, driven by a perfect storm of macroeconomic and geopolitical factors. Gold and silver have seen explosive gains, with spot prices reflecting intense investor interest in safe-haven assets.
- Silver is hovering near $90 per ounce, after peaking at $93 on January 15, a staggering 200%+ increase over the past year.
- Silver’s outperformance is notable, with year-to-date gains exceeding 25%, fueled by industrial demand alongside investment flows.
- Analysts project further upside: Citigroup forecasts gold hitting $5,000 and silver reaching $100 by March, citing geopolitical risks, physical shortages, and uncertainty over Federal Reserve independence.
- Central bank buying remains robust, with expectations of continued demand into 2026.
- Silver faces a severe supply deficit, which could shrink later in the year as higher prices curb industrial and jewelry demand.
- Geopolitical tensions, such as Iran’s threats to U.S. bases, have amplified safe-haven buying.
Economic indicators like persistent wholesale inflation (U.S. core PPI at 3% in November) and weaker global growth forecasts for 2026 add to the bullish case. However, some profit-taking has emerged, with gold slipping on softer tones from U.S. leadership on issues like Iran and Fed policy.
Demand and Supply Pressures
Demand is “historic,” overwhelming the industry.
New investors are flooding in, drawn by gold’s liquidity and diversification benefits—often performing well when stocks and bonds falter. Silver’s dual role as an industrial metal (e.g., in electronics and solar) exacerbates shortages.
This has led to widespread operational challenges:
- JM Bullion: Reports “slight processing and shipping delays” due to high demand.
- SD Bullion: Cites “historic demand” causing delays in processing, shipping, and even phone support.
- Industry-wide: Dealers are extending timelines, limiting assortments, and ramping up staff, as seen in APMEX’s actions. Physical bullion shortages persist, with premiums potentially rising for popular coins like American Eagles or Canadian Maples.
Historically, these conditions appear when:
- Investors lose confidence in paper assets
- Inflation expectations re-accelerate
- Geopolitical and monetary uncertainty rise together
- Physical ownership becomes the priority over paper exposure
That’s exactly the environment we’re in now.
Why This Matters to Investors and Collectors
For bullion investors:
- Price exposure is no longer the only risk, availability and delivery timing matter
- Premiums can disconnect sharply from spot during supply squeezes
- Dealers with scale and inventory access outperform smaller competitors
For coin collectors and numismatists:
- Bullion shortages often spill into semi-numismatic and numismatic markets
- Generic silver dries up first, then collector-grade material tightens
- Replacement costs rise fast once dealer inventories thin out
Navigating the Market
While the fundamentals support higher prices, volatility is inherent, gold could correct if tensions ease post-Q1.
For investors, focus on reputable dealers to avoid counterfeit risks. Diversify across bullion (bars/rounds for low premiums) and numismatics (graded coins for potential appreciation). Always verify authenticity via services like PCGS or NGC.
With gold and silver poised for potential new highs, now’s a time for strategic accumulation, but patience is key given the delays. In bull markets, access and reliability become as valuable as price.
