Fed's $6.6 Trillion Balance Sheet Shift Could Send Silver Soaring

Saad Ullah

Published: 08 Feb 2026, 16:02 PM

After years of shrinking its balance sheet, the Federal Reserve is reversing course—a shift that historically signals big moves ahead for silver prices.

⬤ The Fed's balance sheet is making a U-turn. After dropping from a peak of $8.8-$9 trillion in 2022 down to around $6.6 trillion, total assets are now stabilizing and beginning to tick upward again. The pattern looks eerily familiar to previous liquidity cycles that kicked off major market rallies.

⬤ If stress cracks appear in the financial system, expect the central bank to open the floodgates over the next year. When the Fed expands its balance sheet, it typically marks the start of a broader liquidity wave across markets. Similar turning points in global liquidity cycles have been documented in global liquidity cycle shifts.

⬤ Precious metals stand to benefit most from this shift, with silver positioned to outperform. This rotation from crypto into silver is gaining momentum, a trend explored further in silver demand vs crypto rotation.

⬤ The reversal in the Fed's balance sheet direction matters because liquidity expansions have historically changed which assets lead the market. Tracking central bank asset trends gives investors an early read on where the next wave of capital might flow—and right now, that wave appears to be heading straight toward silver.

Source: https://thetradable.com/commodities/feds-66-trillion-balance-sheet-shift-could-send-silver-soaring--ms