Building a bridge using measurements obtained with a rubber tape measure is not likely to result in a safe structure. So, building a fortune with investments measured by fiat currency is not likely to result in the desired worth.
The analogy is not perfect. We have to work with fiat currency; we don’t have to use rubber tape measures. But the main point is accurate. Measuring important things with flexible standards is not optimal.
So why do we do it? It’s unavoidable, to some extent. But there are ways to lessen its impact. To see how, consider: the primary enemy of fiat currency is inflation—even the Fed’s preferred 2% inflation.
In contrast, gold is very hard to inflate (referring here to quantity, not price). So why is gold not used more broadly? Well, the primary enemies of gold when it is not used as currency are ignorance and misplaced optimism—the first of which often feeds the second.
So how do we lessen the effects of inflation? With knowledge and discipline based on that knowledge. Gold is not a get-rich-quick scheme, though it occasionally has that capability. It is an avoid-disaster-quick strategy, coupled with the possibility of getting rich over time—with discipline.
The keys are clear from this analysis, and they are knowledge and self control. The first is available in abundance from the publications summarized below. The second is all yours, though the below-mentioned authors can—and do—encourage it and offer help with developing it though discussion with brokers who value your success.
Key Takeaways:
- Watch the strong hands, not the weak ones
- The gold bull is resting, not roasting
- Metals encounter a paper obstacle, not a physical one
The McAlvany Weekly Commentary: Central Banks Offloading Treasuries & Buying Gold
David and Kevin spend the episode contending that precious metals remain buoyed more by official-sector “structural bids” than by fickle, momentum-driven “hot money.” David says the secular gold bull trend is still intact despite recent bruising price action, pointing to bullish-but-still-quite-bearish positioning/sentiment (low single-digit open interest and sentiment) and, crucially, sustained central-bank buying—especially China’s multi-month accumulation—while investors are rotating into tech/leveraged ETFs as Treasuries attract less enthusiasm. He frames this as a repricing of trust: central banks are not chasing yield so much as buying optionality, neutrality, and final-settlement security in a world of custody risk, trade fragmentation, and even weaponized finance (e.g., sanctions and reserve-asset seizures). He also ties the story to real yields via the Summers–Barsky logic and to the idea that, with today’s much larger debt load, higher interest rates will likely hurt the bond market instead of gold. Along the way they widen the lens to AI data-center booms, possible semiconductor overcapacity, and stress in private credit/private equity (gated redemptions), ending with a reminder to check less, think longer, and watch ratios like Dow/gold for evidence the cycle is changing.
Hard Asset Insights: Freedom to Use Interest Rates
Morgan argues that a “good news is bad news” market reaction—specifically after a strong non-farm payrolls report—reflects how expectations for higher rates for longer can spook stocks, even when the jobs numbers look healthy. He frames the recent remarks by President Trump and (new) Fed Chair Kevin Warsh around the idea that stronger growth shouldn’t necessarily mean higher inflation or yields, but Lewis contends reality is unlikely to cooperate: even a disinflationary growth boom could strengthen the dollar, complicating foreign demand for U.S. Treasuries and keeping yields elevated. He links this to an intensifying fiscal dilemma, suggesting the Fed may be trapped and pushed toward yield-curve control (or a functional equivalent), which he believes is ultimately bullish for gold—especially in a system sliding toward debt spiral dynamics. He also notes China’s recent gold buying, reviews weekly market performance across assets (gold down, silver up, miners and commodities mixed), and closes with a reminder of how gold may serve as an exit from a broken macro setup.
Golden Rule Radio: Opportunity Amid Market Volatility
Rob, Miles, and Tory open by framing a rough, cross-asset downdraft for precious metals—gold, silver, platinum, and palladium are all sharply lower—while arguing the longer-term backdrop is still bullish because central banks (especially China) keep buying physical gold. They attribute the week’s metal weakness mainly to a “paper liquidity” event: leveraged ETF/hedge-fund selling and ETF outflows (not physical holders panicking), plus a rebound in the U.S. dollar that likely ties to rising Fed-hike expectations. They then connect the dots to macro “why now”: real rates climbing and a hot inflation tape (CPI already at 4.2%, with PPI upcoming), alongside oil strength from an active conflict—an ingredients list that can tilt toward stagflation, which historically helps gold. The hosts also note speculative “tech euphoria” (IPO buzz, crypto weakness) as a form of late-cycle rotation out of insurance assets. Strategically, they suggest trimming silver gained at high gold/silver ratios into gold when the ratio sits in the low-to-mid 60s, using staggered entries (and keeping “powder dry”) for potential further dips.
