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Please enjoy my monologue Think Right with Michael Covel on Trend Following Radio.

Gold got the headlines, but its louder, wilder cousin put on a show of its own. Silver broke to record highs this year, climbing above a hundred and twenty dollars an ounce and running sixty percent and more. If you have ever traded silver, you felt every inch of that move in your stomach, because silver does not climb politely. It lurches. It spikes and stabs and drops in a way that would give gold traders a heart attack.

That is the nature of the metal, and it holds a lesson far bigger than silver itself. The biggest trends often come strapped to the wildest volatility. The same market that hands you a sixty percent gain will also throw ten percent drops at you along the way, drops sharp enough to convince you the run is over and shake you clean out of the position right before it rips to a new high. Silver has ended more good trades early than almost any market I can think of, not because the trend failed, but because the trader could not stomach the ride.

Here is what most people get wrong. They think the challenge in a market like silver is picking the direction. It is not. Plenty of people were right that silver was going up. The challenge is surviving the volatility long enough to collect. And surviving is not a matter of conviction or courage. It is a matter of size.

This is where risk management stops being a boring phrase and becomes the whole game. If you size your position so large that a normal silver swing threatens to wipe you out, then a normal silver swing will wipe you out, and you will be gone before the trend pays. If you size it so that even a violent drop is survivable, you can sit through the noise and stay with the move. The trend follower does not grit his teeth and hope. He sizes the trade in advance so that the volatility, however ugly, cannot force him out. That single decision, made before the trade, is what separates the people who keep silver’s gains from the people who get carried out. It is the heart of what we teach inside the Trend Following Mastery course.

So take this into your own trading, whatever you trade. Before you ever put a position on, decide how much you are willing to lose if it goes against you, and size it so a rough patch cannot break you. Then let the market be as wild as it wants. A trend you cannot hold is worth nothing to you. The point is not to be brave. The point is to still be in the trade when the trend finishes what it started.

P.S. Position sizing is what keeps you in a wild trend instead of getting shaken out of it. The ​Trend Following Mastery​ course teaches you to size and manage risk so volatility works for you instead of against you, and the Bull, Bear & Black Swan Report keeps you tracking the trends that matter every month. If you’d like a purchase link for the Report, just email us at [email protected].

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Source: Silver’s rise to record highs above $120 an ounce in 2026, as reported across financial media.

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Subscribe to Trend Following Radio on iTunes

My guest today is Mebane Faber. Mebane is the co-founder and Chief Investment Officer of Cambria Investment Management. He is also the manager of Cambria’s ETFs, separate accounts and private investment funds, and author of multiple books.

The topic is his book Investing in America: The Rise Of A 250-Year Bull Market.

In this episode of Trend Following Radio we discuss:

• America’s 250-year bull market and long-term wealth creation
• Entrepreneurship, capitalism, free markets, and creative destruction
• Global diversification and emerging-market opportunities
• Trend following, managed futures, and portfolio diversification
• Market valuations, bear markets, and current U.S. equity risks

Mentions & Resources:

• Mebane Faber
• Investing in America: The Rise Of A 250-Year Bull Market
• Cambria Funds

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Feedback in:

I am a trend trader. Of course, you can’t call me a trader, because I haven’t made a single dollar so far. But I am someone who tries, fails, makes a strategy, and continues with a limp, and I will definitely succeed.

Your words give me hope. But in the end, what advice do you have for me?

Have you read any of my books?

I haven’t read any of your books. Which book is better than the others? I don’t have much time to waste. I want to learn quickly and do more.

Trend Following. Usually, people who say they must learn quickly and have no time to waste, fail.

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Feedback in:

Hi Michael,

Great email! I’ve been a trend following trader ever since I read your book ~10 years ago. Completely changed my mindset on investing. Big fan of the 3rd door.

Cheers!

Thanks!

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Cast your mind back over the last two years and find me a cleaner trend than gold. It started 2025 down around twenty six hundred dollars an ounce. By the start of this year it had torn through three thousand, four thousand, five thousand, and printed a record above fifty five hundred. Central banks bought it by the hundreds of tonnes. Money poured into it at a record pace. It was, without much competition, the defining trend of the era.

And most people watched the whole thing from the sidelines. Do you know why? Because at every level on the way up, somebody was there to tell them it was too high to buy. At three thousand it had come too far. At four thousand it was overdue for a crash. At five thousand it was obviously a bubble. Each of those voices sounded reasonable. Each of them missed one of the greatest runs in the history of the metal.

Here is the trap, and it catches almost everyone. “Too high” is not analysis. It is a feeling. It is the discomfort of buying something that has already gone up a lot, dressed up to sound like caution. The market does not owe you a comfortable entry. Trends go further than anyone thinks possible, for longer than anyone thinks reasonable, precisely because so many people refuse to get on board at levels that feel too high.

Gold makes this clear because gold has nothing to anchor to. No earnings. No price to earnings ratio. No cash flow to discount. You cannot calculate what it is worth and wait for a discount, because there is no worth to calculate. There is only price and the direction it is moving. That drives the value crowd out of their minds, and it is why they stood aside while the trend ran without them.

The trend follower had no such problem. He did not need to know why gold was rising. Central bank buying, currency fears, war, debt, none of it mattered to him. Price broke out, he got long. Price kept climbing, he stayed long and added, and he never once decided on his own that it had gone far enough. He let the trend tell him when it was over, not his gut, not a headline, not a round number that felt scary. Leaving the upside uncapped is how you catch a move like this, and it is the discipline we build inside the Trend Following Mastery course.

So take this into your own trading. Strike the phrase “it’s too high to buy” from your vocabulary and replace it with a better question. Is it trending, and am I managing my risk? If a market is trending and your risk is defined, the fact that it already ran is not a reason to stay out. It is the whole point. You do not get paid for buying what feels cheap. You get paid for following what is moving.

P.S. Following strength instead of hunting for cheap is a skill you can learn. The ​Trend Following Mastery​ course teaches you to enter on the trend, manage risk, and leave the upside open, and the Bull, Bear & Black Swan Report keeps that thinking in front of you every month. If you’d like a purchase link for the Report, just email us at [email protected].

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Source: Japanese government bond yields at multi-decade highs, July 2026, as reported by Reuters and Bloomberg.

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue The Meteor Strike with Michael Covel on Trend Following Radio.

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