On-Chain Gold Maximalist Liquidates Silver Long, Profits $781,000

An on-chain trader known as the "On-Chain Gold Maximalist" closed a 10x leveraged long position in xyz:SILVER on January 15, 2026, securing a $781,000 profit. This liquidation occurred amid a broader rally in precious metals, driven by economic uncertainty and geopolitical factors. The trader previously held a large leveraged position in silver-pegged tokens and has continued to bet on gold.

The trader still holds a 5x leveraged long position in 1,500 PAX Gold (PAXG) tokens. The average entry price for this position is $4,415.46, with $270,000 in unrealized gains. This position reflects a continued bullish stance on gold, despite the liquidation of the silver long. The trader also holds leveraged long positions in a basket of on-chain stock tokens, including Apple, Intel, and AMD.

In addition, the trader has leveraged exposure to a silver-pegged token with an average entry price of $78.879 and unrealized gains of $484,000 as of January 13, 2026. This indicates the trader's confidence in both gold and silver, with silver showing significant volatility and price increases. The move to reduce silver exposure could signal a shift in strategy or a response to market conditions.

Why Did the Trader Liquidate the Silver Position?

The liquidation of the silver long position may be linked to recent volatility in the silver market. Silver prices reached a record high of $90.869/oz on January 15, 2026, with analysts noting factors such as geopolitical tensions and inflationary pressures as key drivers. The silver market has shown sharp price swings, with silver nearly tripling in value over the past year.

High leverage can amplify gains but also expose traders to significant risks. By closing the 10x leveraged silver position, the trader secured a profit without exposing themselves to further volatility. This decision aligns with the broader trend of investors adjusting leveraged positions in response to rapidly changing market conditions.

How Does This Affect the Precious Metals Market?

The trader's move to reduce exposure in silver could reflect a broader shift among investors. Silver's price is influenced by a range of factors, including industrial demand, geopolitical events, and US dollar strength. As a yieldless asset, silver tends to rise when interest rates fall. However, its price is also sensitive to economic growth and global uncertainty.

Gold, on the other hand, has continued to outperform silver in recent months. Front-month gold futures closed at $4,626.30/oz on January 15, 2026, reflecting a 70% gain in the past year. Analysts have projected continued strength in gold, with ANZ forecasting a potential price of $5,000/oz in the second half of 2026. This suggests that gold remains a preferred asset in a risk-averse market.

What Are Analysts Watching Next?

Market participants are closely monitoring the continued performance of both gold and silver. Analysts at Citi have suggested that the silver bull market is likely to persist in the short term, with physical market shortages and geopolitical risks providing additional support. However, the volatility seen in the silver market could lead to more cautious trading strategies.

The broader market for leveraged positions in precious metals has also seen growth, with platforms like Mooncake and Aster expanding their offerings. These platforms allow traders to access leveraged exposure without the risk of holding assets on centralized exchanges. As institutional investors and retail traders seek alternatives to traditional markets, the use of on-chain leveraged products is expected to rise.

The trader's strategy of maintaining a leveraged long in gold while reducing exposure in silver aligns with the current market dynamics. With gold continuing to outperform silver in terms of price and stability, it is possible that more investors will shift their focus to gold in the near future. This could further drive up gold prices and reinforce its role as a primary safe-haven asset.

According to on-chain data, the trader's position reflects broader market trends in precious metals.