Gold prices have doubled over the past twelve months, reaching around five thousand dollars per troy ounce. Silver's climb has been even more dramatic. It rose from around $35 an ounce at the start of the year to a peak of $120 in January, before falling back to around $80. Even after that drop, silver is still up more than 250 percent over the year, outperforming almost every other asset.

What's going on?

The current surge began with central banks. After Russia was cut off from the global financial system following its invasion of Ukraine, many countries recognised a vulnerability. The US dollar dominates global reserves and trade, which makes it convenient but also exposes countries to political pressure. Nations including China, Turkey, India and several in the Middle East began looking for alternatives that could not be controlled by any single government. Gold became the obvious choice.

At the same time, the world experienced the sharpest inflation spike in decades. Supply chain disruptions, the energy crisis in Europe and lingering effects of the pandemic undermined confidence in currencies. Historically, these are the conditions in which gold performs well. When trust in money weakens, investors turn to something tangible.

Gold and silver are also not just stores of value. They are essential materials for modern technology. Electric vehicles, renewable energy systems and data centres all depend on them. Demand has risen quickly, but mining supply has not kept pace. Environmental concerns, rising costs and the long time it takes to develop new mines mean production cannot respond quickly to price signals.

Finally, there is a psychological element. As prices rise, fear of missing out draws in more investors. Media attention pulls in ordinary savers alongside hedge funds and central banks, pushing prices even higher.

Ghana and gold

Ghana’s relationship with gold stretches back over a thousand years. Long before modern states existed, gold from the region travelled across the Sahara. European traders later named the area the Gold Coast, a name that captured how central the metal was to the economy.

After independence, gold mining was nationalised, but mismanagement led to decline. Reforms in the 1980s revived the sector, and today gold is once again the backbone of the economy. In 2025, gold accounted for around 64 percent of export earnings, bringing in roughly $11.5 billion. Mining contributes more than a third of government revenue and supports millions of jobs, both formal and informal.

The recent price boom has brought visible benefits. Foreign reserves have stabilised, and the cedi has strengthened significantly against the dollar. This has helped reduce imported inflation, especially for fuel and food, which have been politically sensitive after years of economic hardship. For many Ghanaians, higher gold prices feel like a long-awaited breathing space .

But the boom has also intensified existing challenges. Informal and illegal mining has expanded, driven by the incentive of higher prices. Rivers have been polluted and landscapes damaged. In response, the government has created a Gold Board to tighten controls, capture value leaking out through smuggling and improve environmental enforcement. Special river guards have been trained, arrests have been made and monitoring has increased. Results so far are mixed, but there is recognition that without stronger regulation, the long-term costs could outweigh the short-term gains.

Bolivia and silver

Bolivia’s history with silver is inseparable from Potosí and the Cerro Rico mountain, which for centuries helped finance the Spanish Empire at immense human cost. After five hundred years of mining, the mountain itself is now at physical risk, with collapses a constant threat.

Bolivia remains a significant silver producer. In 2024, it produced around 1,300 metric tonnes and exported roughly $1.2 billion worth of silver ores and concentrates. Mining today is dominated by cooperatives that operate in a grey zone between formal and informal activity. These groups wield considerable political power and are central to ongoing debates about safety, environmental damage and state oversight.

Rising silver prices have brought mixed reactions. Higher incomes help mining communities survive, especially in regions like Potosí where alternatives are scarce. At the same time, weak regulation and limited enforcement capacity raise concerns about environmental degradation and labour conditions. Proposals have been floated to formalise cooperatives through financial incentives tied to environmental standards, but whether these reforms will be fully implemented remains uncertain.

For a country facing a severe foreign currency shortage and fuel crisis, silver offers potential relief. Studies suggest significant revenue gains are possible if the sector is better regulated, but this depends on political will and institutional capacity.

A temporary boom or lasting change?

Both Ghana and Bolivia are benefiting from high prices, but both face the same underlying question. Commodity booms rarely last forever. Prices will likely fall at some point. The real issue is whether today’s windfall can be converted into lasting economic stability, stronger institutions and environmental protection.

In Ghana, higher gold prices have helped stabilise the economy and given the government room to manoeuvre after a difficult period. In Bolivia, silver offers a chance to ease immediate pressures but also exposes long-standing structural problems.

The opportunity is real in both countries. So is the risk. Whether this moment becomes a turning point or just another chapter in the familiar boom-and-bust cycle depends on how governments act while prices are high.

World Reframed is produced in London by Global South World, part of the Impactum Group. Its editors are Duncan Hooper and Ismail Akwei.

ISSN 2978-4891

Both leaders departed the South Korean air force base adjacent to Gimhae International Airport in Busan mum on the outcome. Though, Trump leaned in to whisper something to Xi before boarding his motorcade.

It was only aboard Air Force One that the home-bound Trump disclosed details of their discussion, revealing that both sides had agreed to ease trade tensions, though no formal deal was signed. 

Trump described the talks as a “12 out of 10” and said an agreement could come soon, with plans for reciprocal visits in 2026.

He also announced a cut in fentanyl-related tariffs from 20% to 10%, saying he trusted Xi to curb the export of chemicals used to make the deadly opioid. 

China also agreed to resume large-scale US soybean purchases, a move welcomed by American farmers.

Xi further offered a one-year suspension of rare earth export curbs, helping calm global supply concerns. Both leaders also said they would “work together” to seek a resolution to the war in Ukraine .

The two are expected to discuss issues that have strained US-China ties in recent months, including tariffs , semiconductor exports, rare earth metals, and the TikTok deal. 

Trump quipped that Xi was a “very tough negotiator,” adding, “That’s not good.”

Joining Trump are key members of his delegation: US Ambassador to China David Perdue, Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, White House Chief of Staff Susie Wiles, and US Trade Representative Jamieson Greer.

It remains unclear whether military and defence matters are on the agenda, a critical question given that both nations command the world’s largest armed forces and possess some of its most advanced weaponry.

Trump, who returned to the White House in 2024, said he and Xi “know each other well,” as they already had prior encounters during his first term from 2017 to 2021.

What they said

Strategist at broker Marex said “Aluminum is still seeing this CTA sell program where the short is building to considerable levels,” said Alastair Munro. He added that “There has been much chatter about the possibility of stock inflows around the Third Wednesday prompt. It’s all rumour, but with premiums dropping it would make sense for there to be stock delivered. A metals trader added further, “With so many key data release points this week, metals should continue to see sell-offs ahead of weak data prints,” one metals trader said.