Precious Metals News & Analysis - Gold News, Silver News from Money Metals Exchange

The Blessing Scam Is a Curse!

Fri, 30 Oct 2026 00:00:00 EST

A lady exchanged C$90,000 in gold and cash for some noodles and bottled water.

That doesn’t sound like a very good deal, does it?

In fact, she was a victim of a scam.

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It seems like everywhere you turn, somebody is trying to steal your wealth. You’ve got the government constantly https://www.moneymetals.com/podcasts/2025/11/05/inflation-is-the-plan-004459";>devaluing your money. You’ve got hackers trying to trick you into clicking nefarious links so they can access your computer. You’ve got https://www.moneymetals.com/news/2026/10/26/ai-security-you-cant-hack-physical-gold-and-silver-005319";>AI agents snooping around in bank accounts.

And then there are the scammers.

The thing about scams is that they don’t have to be very sophisticated to work. Scammers prey on fear.

And fear is a powerful motivator.

Two elderly women in Canada let fear get the better of them and lost a significant amount of gold and money.

They’re calling it “the blessing scam.”

In reality, it's a curse.

Vancouver police say in the first incident, two Asian women approached an 81-year-old lady at a bus stop. As they chatted, the scammers found out the victim had sick sons. A short time later, a male suspect joined the group and told the lady her sons could be healed if her valuables were blessed.

Police say the victim returned home and gathered about C$7,000 in cash, a gold necklace, and a ring. Then she handed them over to the man to bless them. In exchange, he gave her back a bag containing instant noodles and water.

I just have to say – that’s a pretty lame blessing.

When the victim told her daughter about the incident, she called the police.

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Investigators did not say whether the woman’s sons received the promised healing. I’m going to go out on a limb and say, no.

A week later, an unidentified Asian woman approached a 79-year-old woman at a different bus stop. Police say a second woman wearing a mask and all-black clothing joined them and told the victim that her youngest son would die if she didn’t bring her gold and money to be blessed by two men to get rid of bad spirits.

The victim took the woman in black to her home and handed over C$50,000 in gold and jewelry, along with about C$40,000 in cash in a backpack.

The thieves returned the backpack after “blessing it.” However, when the victim returned home, she realized the scammers had replaced the gold and money with noodles and water bottles.

Police say they think the two incidents were connected.

So, what have we learned?

If you want a blessing, don’t trust the randos who approach you at the bus stop. Go to a church or religious center and leave the blessings to the pros.

Also, keep an eye on your elderly friends and family members. Talk to them about the dangers out there. If somebody asks you to do something and it seems kind of crazy, trust your instincts.

And most importantly, don't let fear get the better of you. Slow down. Think things through. Wait before you act. Once the wave of emotion passes, you can make a better decision.

The Gold-Silver Ratio Is Expanding; What Next?

Fri, 30 Oct 2026 00:00:00 EST

The https://www.moneymetals.com/news/2024/03/25/what-is-the-gold-silver-ratio-why-should-we-pay-attention-to-it-003075";>gold-silver ratio is expanding again. This could signal that silver is setting up to resume its bull run. However, plenty of headwinds continue to buffet the market.

What Is the Gold-Silver Ratio?

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The gold-silver ratio shows how many ounces of silver it takes to buy one ounce of gold at their current spot prices.

In other words, it tells you the price of gold in silver ounces.

Historically, the ratio has averaged between 40-1 and 60-1 in the modern era. When the ratio expands far beyond that average, it tends to eventually snap back to that mean, often very quickly.

For instance, in 2020, the gold-silver ratio set a record of 123-1 as COVID hysteria gripped the world. The ratio then plunged to around 60-1 as central banks cranked up the money creation machine to cope with governments shutting down economies. At the same time, silver gained approximately 157 percent between March and August 2020, climbing from $11.64 to $29.86 per ounce.

More recently, the gold-silver ratio fell from around 82-1 in October 2025 to about 46-1 around silver’s $122 January peak. In April 2025, the ratio peaked around 105-1 as the market set up for the bull run later that year.

What Is the Gold-Silver Ratio Today?

Since then, the gold-silver ratio has been generally range-bound between 60 and 70-1 since June. That’s just above the high end of the modern average. However, the ratio has started widening again. As I write this, it stands at about 77-1.

https://www.moneymetals.com/uploads/content/gold-silver-ratio-oct-26.png"; width="500" height="361" class="mx-auto p-3" alt="" />

This raises a question: what’s causing silver to underperform compared to gold in the current environment?

Both metals face significant headwinds from rising yields and expectations of additional https://www.moneymetals.com/news/2026/10/29/fed-hits-pause-button-announces-new-meeting-format-005329";>Federal Reserve rate hikes. Because precious metals are non-yielding assets, https://www.moneymetals.com/news/2026/09/18/higher-rates-are-bad-for-gold-and-silver-or-are-they-005215";>gold and silver tend to struggle in higher-yield environments.

However, despite the headwinds, the gold market continues to get support from https://www.moneymetals.com/news/2026/08/18/four-reasons-central-banks-are-piling-up-gold-005146";>central bank gold buying and Asian investors, https://www.moneymetals.com/news/2026/10/29/somebody-is-buying-gold-right-now-who-005330";>particularly the Chinese.

As Metals Focus analysts noted, “Silver, by contrast, is viewed more as an industrial commodity and does not enjoy the same quasi-monetary attributes as gold.”

The physical tightness in the silver market that https://www.moneymetals.com/news/2026/04/16/how-a-silver-shortage-sparked-a-historic-price-rally-004839";>drove prices higher during two distinct squeezes in October 2025 and January 2026 has also eased.

After falling to record lows late last year, silver inventories in London vaults were at a 4-year high of 932 million ounces at the end of September, according to Metals Focus.

“Excluding metal tied up in physically backed ETPs, free-float London inventories stood at around 267Moz, nearly double the lows recorded in October 2025 and almost back to levels seen before the Trump tariff-related disruptions.”

https://www.moneymetals.com/uploads/content/london-silver-inventory-oct-26.png"; width="500" height="361" class="mx-auto p-3" alt="" />

Metals Focus analysts said inventories at key commodity exchanges in the U.S., China, and India also grew modestly in recent months. Rapid cooling of investor interest after the January peak was the “key contributor” to this improving liquidity.

“In 2025, substantial inflows into silver ETPs quickly absorbed liquidity in London. This year, however, silver ETP holdings have fallen by roughly 60Moz year-to-date, releasing metal that was previously tied up. Initially, this year’s outflows reflected profit-taking as prices reached a series of record highs. While these net liquidations quickly subsided, a lack of conviction in the near-term price outlook has also restrained fresh investment in silver.”

https://www.moneymetals.com/news/2026/10/22/the-bull-market-isnt-over-silver-setting-up-for-next-leg-higher-005311";>Analyst Jesse Colombo said a lot of the bearishness in the silver market comes from investors who got in late and jumped out early.

“They piled in near the very top, just weeks or even days before silver peaked at $121, only to lose interest when it corrected, as all overheated assets eventually do. Then they simply moved on to what they believe is the latest and greatest hot asset, whether it’s an overvalued and overhyped AI stock, a new cryptocurrency, or whatever else the lemmings are currently piling into.”

Since then, Western investors have shown little interest in silver, evidenced by coin sales. According to Metals Focus, “Following a surge in Q1.26, sales of primary silver bullion coins by leading mints plunged by over 80 percent q/q in Q2, reaching their lowest quarterly level since the survey began in 2010.”

Sales recovered modestly in Q3; however, volumes remained subdued, falling by 22 percent year-on-year.

https://www.moneymetals.com/uploads/content/silver-coin-sales-oct-26.png"; width="290" height="438" class="mx-auto p-3" alt="" />

Meanwhile, https://www.moneymetals.com/news/2026/07/14/indian-import-tax-driving-silver-shortage-in-india-005062";>Indian silver imports dropped sharply. This past May, the Indian government raised import duties on gold and silver, hoping to stem imports and support the rupee.

According to Metals Focus, the drop in Indian silver imports helped ease liquidity pressure in London.

What's Ahead for the Silver Market?

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In the near term, Metals Focus analysts expect physical silver demand to remain subdued. Along with lower investment demand, the higher silver price is weighing on jewelry sales. It is also driving thrifting and substitution in industrial applications.

Silver has been in a structural market deficit for five years, meaning demand has outstripped mining and recycling output. Last year, demand outstripped supply by 40.2 million ounces (1,250.36 tonnes). That drove the 5-year market deficit to 716 million ounces. For perspective, total silver mining output last year was 846 million ounces.

With demand under pressure, Metals Focus expects the market deficit to ease further this year and flip to a surplus in 2027. This reduces the likelihood of another squeeze.

Metals Focus analysts say against this backdrop, silver will likely continue taking cues from gold over the next 12 months.

“With ongoing headwinds from rising interest rates and yields, precious metals are expected to remain under pressure in the near term, with silver’s higher beta suggesting scope for further underperformance relative to gold.”

However, Metals Focus has a more bullish long-term outlook.

“Once markets scale back expectations of aggressive monetary tightening in 2027, silver could start to outperform, as renewed upward price momentum encourages investors to rebuild their exposure.”

At that point, we can expect the gold-silver ratio to snap back to the mean once again.

For technical analysts, Colombo noted that the gold-silver ratio appears to be setting up a triangle pattern, a common occurrence when asset prices pause and consolidate.

https://www.moneymetals.com/uploads/content/gold-silver-ratio-triangle.png"; width="700" height="420" class="mx-auto p-3" alt="" />

“In technical analysis, triangle patterns often act as https://www.investopedia.com/terms/c/continuationpattern.asp"; target="_blank" rel="noopener">continuation patterns, meaning that once the necessary consolidation or cooling-off period has run its course, the original trend resumes in the same direction, setting the stage for a repeat of the prior move.”

Colombo said that when this pattern breaks down, he expects it will kick off the next phase of the bull market. At that point, silver will likely surge back to its record high of $121 and beyond.

Somebody Is Buying Gold and Supporting the Market! Who?

Thu, 29 Oct 2026 00:00:00 EST

There's plenty of selling in the gold market right now.

Rising yields and expectations of further Federal Reserve rate hikes have put significant pressure on gold, driving the price down to around $4,000 per ounce.

However, despite sustained headwinds over the last several months, the yellow metal has held that $4,000 support.

That means somebody is buying gold.

Who?

Chinese households are buying the dips.

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I picked up this trend simply by watching daily price movements. Virtually every day, gold prices spike when Asian markets open, as investors take advantage of falling prices during Western trading hours.

Jinrui Futures Co. analyst Zijie Wu said lower prices are “attractive entry points for long-term investors.”

“Domestic gold demand is increasingly running against the price trend, strengthening as prices fall.”

Bloomberg noted that a popular contract on the Shanghai Gold Exchange (AU99.99) reported a 43 million-lot volume jump last week, representing about 430 tonnes of gold. It was the highest level since April. This contract requires full payment and mandatory delivery, so it reflects physical demand, not leveraged bets.

Analysts say many Chinese investors are slowly building their gold holdings through https://www.moneymetals.com/programs/monthly-program";>accumulation plans that allow them to buy small amounts of gold on a recurring basis. According to Bloomberg, purchases through these accumulation plans had already exceeded last year’s total through the first nine months of 2026.

Officials who asked for anonymity because the numbers aren’t public said buying picked up further last week as prices eased.

Chinese investors are turning to gold as a safe haven. Chinese stocks have lost $2.4 trillion since their May peak. Property values are slumping, and government bond returns have hit a record low.

Bloomberg asserts that Chinese buying through this year has “helped steady gold and largely kept the benchmark price above $4,000 an ounce.”

Chinese physical gold demand also helped drive the early stages of last year’s gold bull market. While Western retail investors largely sat on the sidelines, Chinese buyers snapped up a record high of 432 tonnes of gold bars and coins in 2025, a 28 percent year-over-year increase. For the first time, physical investment demand outpaced gold jewelry sales.

Chinese institutional buyers have also taken advantage of the dips, evidenced by strong inflows into Chinese gold ETFs.

Huaan Fund Management Co. operated the country’s largest gold ETF. A company analyst said the equity selloff has boosted institutional gold demand, and interest increased as the price dipped toward the $4,000 level.

https://www.moneymetals.com/news/2026/10/08/positive-etf-gold-flows-pushed-holdings-to-a-new-record-in-september-005276";>Asian funds added 16.2 tonnes of gold in September, valued at $2.3 billion. It was the third straight month of inflows after a brief pause last summer.

Chinese funds reported the largest positive gold flows, while activity also increased in India, Japan, South Korea, and Singapore. The World Gold Council said this highlights "the breadth of regional buying."

ETFs are a convenient way for investors to play the gold market, but https://youtu.be/7aP6VbgXVeM?si=O3yPeFkTYFHOXrHe"; target="_blank" rel="noopener">owning ETF shares is not the same as holding physical gold.

Fed Hits Pause Button; Announces New Meeting Format

Thu, 29 Oct 2026 00:00:00 EST

The Fed hit the pause button at its October meeting despite https://www.moneymetals.com/news/2026/10/15/beyond-the-cpi-the-complete-inflation-story-september-2026-005295";>elevated inflation and gave little indication about what comes next.

Federal Reserve Chairman Kevin Warsh also announced that the Fed will hold fewer rate-setting meetings in the future.

Fed Does Little, Says Less

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The Federal Open Market Committee (FOMC) voted 10-2 to maintain the federal funds rate in a range between 3.75 and 4 percent.

Lisa Cook and Beth Hammack dissented and voted for a quarter-point rate hike.

Markets widely anticipated the pause and were looking for hints about what the Fed might do at its December meeting. However, Warsh & Co. remained tight-lipped.

The https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a.htm"; target="_blank" rel="noopener">official FOMC statement noted that “inflation remains elevated,” and suggested the committee wants more information to gauge the effect of September’s quarter-point hike.

“The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal. The Committee will deliver price stability.”

Warsh doubled down on this vague messaging at his press conference, once again asserting he doesn’t believe the central bank should provide “forward guidance” during normal times.

“I don’t believe in forward guidance, absent exigent circumstances, absent a crisis.”

He added a caveat:

“In the darkest days of the 2008 financial crisis, in part using some literature and thinking from a very recent Nobel Prize winner, that kind of forward guidance is actually quite helpful. But in normal, ordinary times, especially times where the underlying real economy is this strong, I don’t believe in it. I don’t favor it.”

The Fed currently believes the economy is “expanding at a strong pace.”

Warsh said the FOMC will gather more information in the coming weeks before deciding whether it's necessary to resume rate hikes in December.

"The period right in front of us is information rich. There's a lot happening in the world. My colleagues and I are keen to take notice of it." Warsh said, adding that they will determine "the appropriate protocol" in the weeks ahead.

Reaction to the Fed’s Non-Move

It remains unclear why the Fed put rate hikes on pause. CPI has been above the mythical 2 percent target for 67 consecutive months. Core CPI rose by 0.3 percent last month.

DoubleLine Capital CEO Jeffrey Gundlach told CNBC he thinks the central bank should be hiking based on the current bond market, noting that the 2-year Treasury is at 4.75 percent, and Warsh just said the economy is strong.

“What are you waiting for? You just upgraded the economy right here.”

Some pundits speculate the Fed paused rate hikes to support the stock market in the days leading up to the midterm elections. Warsh insisted that was not the case.

“I just spent two days with my colleagues upstairs. I didn’t hear an utterance about politics. I didn’t hear a reference to politics, elections, what’s happening in the next week or so. Didn’t hear anything about it, and I don’t believe it had any role in the decision, not just for me, but my colleagues around the room."

We’ll never know if political considerations drove the decision, but there are $40 trillion good reasons to hold rates steady despite elevated price inflation.

Of course, I’m referring to the https://www.moneymetals.com/news/2026/08/20/the-40-trillion-national-debt-in-perspective-005151";>national debt. And that’s just one part of the massive https://www.moneymetals.com/news/2025/11/15/debt-black-hole-putting-increasing-stress-on-american-consumers-004483";>debt black hole dominating the U.S. economy. Debt-riddled economies don’t function well in a high-interest-rate environment.

This is https://www.moneymetals.com/news/2026/03/19/gold-the-federal-reserve-and-a-catch-22-004773";>the Catch-22 the central bank has faced for months, and there’s still no easy way out. It needs to cut rates to support the debt bubble, and it needs to raise rates to slay price inflation. It can’t do both, and a pause makes sense in this context.

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New Meeting Format

The biggest news coming out of the October Fed gathering was the announcement of a new meeting schedule beginning next year.

Warsh said the FOMC will still meet eight times a year, calling it “the right number for the FOMC.”

However, one meeting next year will focus solely on strategy, and the committee will not make a rate-setting announcement. In 2028, the FOMC will move to two strategy sessions and six rate-setting meetings.

Warsh called the reason for the change “straightforward.”

“Getting policy right involves assessing near-term developments at timely, regular, and information-rich intervals. But it’s equally important we reserve time and space as an intellectually diverse group for strategic deliberations, for thinking anew about big questions, looking out over longer time horizons, focusing, as I say, on the left side of the decimal point.”

Warsh said changing the meeting format is “more than some administrative detail.”

“It’s an institutional choice, affecting the nature and the quality of our deliberations, and ultimately the wisdom of our decisions. It’s yet another change to get the conduct of monetary policy on the right track.”

AI Cybersecurity Risks, Physical Gold and Silver, and Gold’s Value

Thu, 29 Oct 2026 00:00:00 EST

In this episode of the Money Metals Midweek Memo, host Mike Maharrey considers how artificial intelligence could affect trust, cybersecurity, and investors’ access to their money. He also discusses silver’s sharp correction, the long history of gold jewelry, and ways listeners might use precious metals as a physical store of value.

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AI Deepfakes and Public Trust

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Maharrey opens with a cautionary example. A story about a tiger supposedly calling for help when its keeper had a medical emergency came with images that appeared to be surveillance photos, but the story was fabricated with AI. Maharrey says he believed it until his wife noticed inconsistencies between the pictures.

He argues that increasingly convincing AI-generated images and video could make people less sure of what they see. In a climate where some people already dismiss unwelcome evidence as “fake news,” he wonders how AI might further weaken confidence in institutions, media, and even money.

Maharrey sums up the concern with a question. “What happens when you can’t tell anymore?” He suggests that the uncertainty could encourage people to value face-to-face interaction, local community, and physical media.

AI Cyberattacks and Bank Security

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Maharrey turns to what some in technology circles called “Black October,” describing a surge in reported cybersecurity vulnerabilities and attacks. Google Threat Intelligence reported that monthly vulnerability disclosures rose from 5,045 in January to 10,740 in August.

He cites technology commentator John Molinovich, who described dozens of attacks over a two-day period and said that government, education, technology, and banking were affected. Molinovich warned that powerful AI models can work around the clock and be deployed in large numbers. “They can work 24/7, and you can spin up 10,000 of them with a single command,” he wrote.

Maharrey notes that U.S. banks have reported customers giving personal AI agents access to financial accounts. Some agents reportedly contacted customer service or filed complaints without the account holder’s authorization. White House AI czar David Sacks said that much of the activity involved customers sharing credentials with agents to act on their behalf. Maharrey argues that even authorized access deserves caution, given the possibility that AI agents may take actions their users did not intend.

Physical Gold as Cyber Risk Protection

The episode connects cyber threats to counterparty risk, the possibility that another party in a transaction will fail to meet its obligations. When funds sit in a bank account, or an asset is held digitally, Maharrey says, the owner depends on institutions, networks, and power systems to access it.

He is not opposed to Bitcoin, saying he owns it and sees potential in blockchain technology. But he points out that digital assets require electricity and internet access, both of which could be disrupted by https://www.moneymetals.com/news/2025/03/12/why-bitcoin-is-not-equal-to-gold-003904";>cyberattacks, government action, or natural disasters. He uses hurricanes as an example of how a prolonged power outage could make it difficult to use a computer, charge a phone, or reach an ATM.

Maharrey recommends holding some physical gold or silver as a backup, while also taking basic https://www.moneymetals.com/news/2026/10/26/ai-security-you-cant-hack-physical-gold-and-silver-005319";>steps to protect digital accounts.

“Gold and silver in your safe cannot be hacked,” he says. “They cannot be turned off.”

He also points to Russia’s use of its gold reserves amid limited access to the dollar system as an example of how hard assets can matter when financial access is constrained.

Silver Price Correction and Bull Market

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Maharrey says silver had surged to just https://www.moneymetals.com/silver-price";>over $120 an ounce in January before losing more than half its value. At the time of the episode, it was holding above $50. The Federal Reserve was expected to leave interest rates unchanged at its meeting, though investors were watching closely for forward guidance.

Citing technical analyst Jesse Colombo, Maharrey says many investors only began paying attention to silver near its peak, around $121, and lost interest after the correction. Colombo observed that many had little interest when the https://www.moneymetals.com/news/2026/10/22/the-bull-market-isnt-over-silver-setting-up-for-next-leg-higher-005311";>bull market began in early 2024, while silver was still trading in the $20s.

Colombo believes investors may be overlooking the possibility of another strong move higher. “This is the time to be paying close attention and accumulating while it is still quite cheap,” he wrote. Maharrey says Colombo’s technical case is laid out in a separate article with charts.

Gold Jewelry and Its 6,500-Year History

The episode also explores gold as a gift and a durable store of value. Maharrey describes a child’s grave in a Roman cemetery in Bulgaria, where archaeologists found https://www.moneymetals.com/news/2026/10/23/ancient-gold-earrings-discovered-in-roman-cemetery-005314";>well-preserved gold earrings and a small bronze coin. The cemetery, with approximately 135 graves, dates to around 275 CE.

The area near the Black Sea was annexed by Rome in 46 CE, and the city now known as Stara Zagora was renamed Augusta Traiana in honor of Emperor Trajan. Maharrey says the city eventually received permission to operate its own mint. He compares the earrings with gold jewelry found in Bulgaria in the early 1970s, dating from 4,600 to 4,300 BCE, roughly 6,500 years old.

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Maharrey notes that jewelry accounted for about one-third of gold demand in 2025, with demand totaling 1,542 tons. Gold’s durability and resistance to decay help explain its long history as both adornment and money. As Maharrey puts it, “Gold is gold basically forever.”

Money Metals Gold and Silver Offers

Maharrey highlights a Money Metals offer for https://www.moneymetals.com/1-oz-american-silver-eagle-random-year/262";>random-year American Silver Eagle coins at a premium of $5.97. Each coin contains one troy ounce of .999 fine silver, or 99.9% pure silver. “They’re easy to sell, they’re easy to use and barter,” he says of Silver Eagles.

He also mentions gold and silver jewelry, gold coins, and a monthly installment plan starting at $100. Listeners can contact Money Metals at 800-800-1865, order online, or arrange storage at the company’s bullion depository in Eagle, Idaho.

Can't Hack This! Gold & Silver in a Digital Age

Wed, 28 Oct 2026 00:00:00 EST

Some people in tech circles are calling it Black October.

AI has reached the point where it can blast through cybersecurity defenses that were once considered unbreachable.

That means virtually anything digital can be hacked – including your bank account.

But no matter how sophisticated your AI bot, you can't hack gold or silver.

In this episode of the Midweek Memo podcast, host Mike Maharrey explains the growing risk of AI hacking and how to protect yourself.

And as the holiday season approaches, Mike suggests a great gift that will stand the test of time, inspired by an amazing find in Bulgaria.

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"Seeing is believing. A picture’s worth 1,000 words. Show me, don’t tell me!"

Mike notes that this common-sense wisdom is starting to make less sense.

"In the age of AI, you can’t believe everything that you see. AI photos and video are getting to the point that it’s difficult to tell they’re fake. A couple of weeks ago, I mentioned a story about a tiger calling for help when his keeper had a medical emergency. The story was complete with photos from a surveillance camera. But the photos were fake. And the story was made up. And you know what? It fooled me."

Mike points out that AI has advanced significantly in a very short period of time.

"It was long ago that AI images were mocked because they couldn’t even get the right number of fingers on a hand. And now I’m paranoid! I find myself scrutinizing every video and photo I run across, trying to determine if it’s real. What happens when we can’t tell anymore?"

Mike says AI seems to be eroding our confidence in reality, with significant ramifications.

"I’ll give you an example. What gives the dollar its value? We’re told it is backed by the “full faith and credit of the federal government.” What happens when there is no longer “full faith?” I mean, there shouldn’t be, because the government is intentionally wrecking your money. But still, you see what I’m driving at here, right? And it’s not just the dollar. People have lost faith in everything. I have people tell me they don’t bother to buy gold because 'it’s just manipulated anyway.'”

Mike notes that there have been some pretty wild developments in the AI realm over the last few weeks. Some people in tech circles are calling it "Black October."

"AI has reached the point where it can blast through cybersecurity defenses that were once considered unbreachable. That means virtually anything digital can be hacked – including your bank account.

"Do you know what can’t be hacked?

"Physical gold and silver."

Over the last few weeks, cyberthreat reports have gone parabolic.

https://www.moneymetals.com/uploads/content/cve-tracker.jpeg"; width="500" height="298" class="mx-auto p-3" alt="" />Mike quotes a techie on X who summed up what's going on.

“We're 48 hours into what is being called Black October. In the last 2 days there have been several dozen cyberattacks which, in isolation, would each have been the worst to happen in an entire calendar year. Every sector, from government to education to big tech and banks, is being massively affected, and people are starting to freak out.”

Several banks have reported AI agents working within customer accounts, some of which appear to be taking unauthorized actions.

The issue is that AI agents have become nearly as good as the most sophisticated programmers. But there's a big difference. AI bots don't sleep, and you can link 10,000 together with a single command. As our techie on X put it, "They'll work together tirelessly until they accomplish their task."

Mike notes that most people assume their money is "safe" in the bank.

"Is it, though? The bank introduces significant counterparty risk. Simply put, you have no control over your funds when they are in the bank. Hackers do. With a sophisticated AI tool, hackers could access your savings account and drain it completely. They cannot 'drain' the silver coin I’m holding in my hand."

Mike said that even absent hacking threats, it's still unwise to hold all your assets in digital form.

"Consider what would happen if a major storm took out the electrical grid in your area. How would you access your money or do business if you can’t even fire up your computer or charge your phone? We take the digital world for granted, but it wouldn’t take much to send us back to the proverbial Stone Age. It’s wise to be prepared. Hold some physical gold or silver as insurance."

Mike offers some suggestions to help mitigate the risk.

"Use long, difficult passwords and change them frequently. Turn on two-factor authentication. And beware of giving AI bots access to sensitive accounts. Most importantly, keep at least one toe in the physical world. Keep assets you can hold in your hand. Gold and silver in your safe can’t be hacked, and they can’t be 'turned off.'”

Mike then pivots to silver, noting that many people have turned bearish. However, technical analyst Jesse Colombo thinks we're just in a consolidation phase, and the next leg of the bull run is right around the corner.

"Colombo has some pretty compelling technical analysis to back up this claim. I summarized it in an article over at MoneyMetals.com/news. I’m not going to try to go through it all here because there are a lot of visuals. I’ll link to the article in the show notes for you to check out."

Mike then proclaims he recently received his Walmart gift catalogue in the mail.

"It reminded me that the holidays are right around the corner. Heck, they’ll be playing Christmas music next week. So, I guess it’s time to start thinking about gift-giving, eh? Want a gift that stands the test of time?

"Get gold!"

Mike suggests gold stud earrings.

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"They are beautiful, classic, and will last, well, forever! Or at least a really long time.

"How long have people been getting gold earrings as gifts?

"At least 1,700 years!"

"At a site in Bulgaria, archaeologists unearthed a child’s grave. Among the bones, they discovered 'stunningly preserved' gold earrings."

Mike notes that the earrings look just like they came out of a case at Kay Jewelers.

"This is a testament to gold's durability."

Mike points out that gold also serves as money for many of the same reasons we value it as jewelry.

"It is durable, malleable, and it doesn’t decay, corrode, or degrade. Gold is gold – forever."

And its value is recognized worldwide.

"From skyscrapers in Manhattan to tents in the Sahara, people value gold. And of course, gold is beautiful. That’s why people have been adorning their bodies with it for more than 6,000 years. I’m pretty certain your loved one would be thrilled to get some gold this holiday season. Something to consider as you plan your holiday gift-giving!"

Mike ends the show with a call to action -- call 800-800-1865 and talk with a Money Metals precious metals specialist today.

Articles Mentioned in the Show

https://www.moneymetals.com/news/2024/02/29/buy-gold-and-silver-to-hedge-against-counterparty-risk-003015";>Buy Gold and Silver to Hedge Against Counterparty Risk

https://www.moneymetals.com/news/2026/10/26/russian-gold-reserves-down-62-tonnes-this-year-as-they-support-the-wartime-economy-005318";>Russian Gold Reserves Down 62 Tonnes This Year as They Support the Wartime Economy

https://www.moneymetals.com/news/2026/10/22/the-bull-market-isnt-over-silver-setting-up-for-next-leg-higher-005311";>The Bull Market Isn't Over: Silver Setting Up for Next Leg Higher

The Lesson of 1971 Was Never About Gold

Wed, 28 Oct 2026 00:00:00 EST

On August 15, 1971, Richard Nixon interrupted Sunday-night television to announce https://www.moneymetals.com/news/2024/06/28/what-in-the-world-happened-in-1971-003286";>the New Economic Policy. With the Vietnam War winding down, Nixon argued that the economy required federal action to deliver what he called “a new prosperity without war.” Nixon declared that night, “We must create more and better jobs; we must stop the rise in the cost of living; we must protect the dollar from the attacks of international money speculators.”

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His policy froze wages and prices for 90 days and thawed a restraint on Washington’s management of money by suspending gold convertibility for foreign governments and central banks.

One policy froze the prices Americans could charge one another. The other released the government from the rule that forced it to redeem its monetary promises. Both followed the same instinct: when the signal becomes inconvenient, suppress it and escape the discipline it imposes.

Nixon called the suspension temporary. It was not.

Broken Promises

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Friedrich Hayek had named the vulnerability 28 years before Nixon acted. Writing in 1943, in an essay later collected in https://mises.org/library/book/individualism-and-economic-order"; target="_blank" rel="noopener">Individualism and Economic Order, he granted that “the gold standard as we knew it undoubtedly had some grave defects.” Gold arrived too slowly to track real demand for money, producing deflation before new supply arrived and excess once it did.

But the defects were not the point.

Gold gave the world an international currency answerable to no single government, a monetary policy that was largely automatic and therefore predictable, and money supply adjustments that generally moved in the right direction.

Hayek’s answer was not managerial discretion but a better rule: a currency anchored to a broad basket of commodities rather than one metal, governed automatically, and explicitly not a license to freeze any individual price along the way.

Seventeen years later, in December 1960, economist Robert Triffin told the Joint Economic Committee that the system carried the seeds of its own collapse. The world needed dollars abroad, pushed out by military spending, foreign aid, and capital outflows. Every dollar that left made it less plausible that the United States could redeem them all in gold at $35 an ounce.

Later that decade, the dominoes began to fall. The London Gold Pool, a coalition of central banks trying to defend that price through coordinated selling, collapsed in 1968. Across the English Channel, France spent the back half of the decade https://www.moneymetals.com/news/2024/10/05/why-france-repatriated-3313-tonnes-from-new-york-and-london-in-the-1960s-003516";>converting its dollar holdings into gold, at one point sending a warship to New York to collect the gold. American gold reserves peaked in 1949 at 21,708 metric tons. That August night when Nixon spoke, they stood at 9,069, a fall of some 58 percent.

Treasury Secretary John Connally had been arguing for months that the old policy of benign neglect toward the dollar’s slide had run its course, and Nixon agreed. Meeting with Nixon two weeks before the announcement, Connally predicted, “We may never go back to it. I suspect we never will.”

Nixon called the move a defense of the dollar and an attack on speculators. It was, in function if not in name, the opposite: a default, dressed in the language of a temporary suspension. Bretton Woods ended in all but name by 1973, and the dollar has floated on nothing but promises ever since. What replaced the rule was the discretion of whoever held the job next.

By the fall of 1971, with an election about a year out, Nixon was leaning on Arthur Burns, his own appointee to chair the Federal Reserve, to keep money loose. Burns obliged. Tapes declassified decades later show a Fed chairman reporting rate cuts to the president like a subordinate delivering good news, and a money supply that grew faster in 1972 than in either of the two preceding years.

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Nixon won in a landslide. The country spent the rest of the decade paying for it, in double-digit inflation and stagflation.

The real lesson of 1971 was never about gold. It was about what happens when the person guarding the currency answers to the person spending it.

The Same Test, 55 Years Later

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Since 1971, the Fed’s independence has been questioned many times. Donald Trump had no gold window to close, so he went after the guard instead, a guard he had appointed himself in his first term.

Jerome Powell spent most of 2025 as the public target of a president demanding lower interest rates. When Powell refused to bend, a Justice Department criminal investigation opened into cost overruns at the Fed’s building renovation.

Trump also moved against the Board itself. He attempted to fire Governor Lisa Cook in August 2025, the first such attempt in the Fed’s 111-year history.

In a video statement, Powell warned of the pressure the Fed was under. He stated, “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”

The Department closed the investigation in April 2026, handing what remained to the Fed’s own inspector general. Two months later, the Supreme Court blocked Trump’s first attempt to fire Lisa Cook by a single vote, 5-4, on the same day it affirmed Trump’s firing of an FTC commissioner.

Powell’s term as chair ended in May but, for the first time since 1948, the former chair stayed on the Board as an ordinary governor. His replacement, Kevin Warsh, walked into the job promising independence and a hard line on inflation. He arrived with his own ties to the White House. His father-in-law, Ronald Lauder, has been one of Trump’s closest friends since Wharton; he is credited with reigniting the Greenland debate and gave $5 million to a pro-Trump super PAC.

Warsh, to his credit, held the line. Two meetings in, he has held rates at 3.50 to 3.75 percent against a president who is pushing for cuts. Three regional Fed presidents, Beth Hammack, Neel Kashkari, and Lorie Logan, dissented anyway, arguing for a hike in an attempt to temper inflation sooner.

AIER’s own Monetary Rules Report found 11 of 12 standard rules pointing higher than where Warsh has held; the original Taylor rule prescribes the highest target rate, at 5.91 percent. Warsh is refusing the president’s cuts and still sitting more than two points below what that rule would require. Resisting pressure is not the same as following a rule.

But Burns did not cave in his first two meetings either. He caved in year two, once the approaching 1972 election made Nixon want loose money badly enough to ask for it outright. That incentive is forming again, on a shorter clock. Trump is not on the ballot in November, but his majority is, and since 1934 the president’s party has lost an average of 28 House seats during the midterms. A soft economy heading into them is exactly the condition that makes a president want lower rates.

That is the institutional danger Hayek saw. His objection to discretion was not that every manager would use it badly. It was that a system governed by judgment leaves the currency exposed to a president who wants something from it. Hayek’s point was that the currency should not have to depend on either.

Originally Published on https://thedailyeconomy.org/article/the-lesson-of-1971-was-never-about-gold/"; target="_blank" rel="noopener">AIER's The Daily Economy.

How Could the Midterm Elections Impact the Gold Market?

Tue, 27 Oct 2026 00:00:00 EST

The midterm elections are fast approaching, and Democrats are widely expected to make significant gains.

How might this impact the gold market?

If history is any indication, it will all depend on how the shift impacts policy.

Prediction markets expect the Democrats to take both the House and the Senate in the midterms. This would significantly hinder President Trump’s legislative agenda.

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In other words, gridlock is the most likely outcome.

According to the World Gold Council, domestic demand for gold bars and coins tends to rise modestly under Democratic administrations. However, elections have not historically had a significant impact on gold’s global performance over the long haul.

“Given the geographic diversity of demand, what matters is whether the resulting policy changes are sufficiently consequential for the global gold market, and whether they can offset other global forces that drive the price.”

For instance, gold initially fell as equities rose in anticipation of a pro-growth, reflationary agenda after Trump victories in 2016 and 2024. However, much of the move unwound as attention shifted from the election itself to the policies likely to follow.

https://www.moneymetals.com/uploads/content/gold-stocks-and-Trump-wins.png"; width="700" height="375" class="mx-auto p-3" alt="" />

World Gold Council analysts expect this pattern to repeat for the 2026 midterms. Any initial market reaction will likely prove short-lived, with the real impact driven by the political gridlock likely to follow a Democrat victory.

“Regardless of the midterm results, historically, the gold price has reacted to the economic, fiscal and monetary policies that ensue, rather than to the outcome of election day itself.”

The World Gold Council highlighted four policy areas that could shift with Democratic Party control of Congress.

Fiscal Policy – The WGC asserts, “Democratic control could limit the administration’s ability to pass deficit-expanding legislation.” It’s true that Democrats would likely block Trump priorities. However, Democrats will push their own spending agenda. It seems the most likely outcome is the status quo – and the status quo is a https://www.moneymetals.com/news/2026/10/19/trump-administration-runs-third-largest-federal-budget-deficit-in-history-005303";>$2 trillion deficit. Meanwhile, a Democrat controlled Congress could thwart Trump’s tariff agenda, putting downward pressure on federal revenue.
War Funding – This is where Democratic control of Congress could have the most significant impact on the gold market. Congress could cut war funding and force the president to de-escalate in Iran. Soaring oil prices due to the war and their inflationary impact have created significant headwinds for gold. For the last several months, the war has effectively kept a lid on the gold bull market. Remove the lid, and gold could take off.
AI – A Democrat-controlled Congress could constrain support for AI and drive more government regulation. However, Trump’s veto pen could limit the impact. Again, the most likely scenario is gridlock. But even a modest slowdown in AI growth could have an outsized impact on the markets. As the World Gold Council noted, investors are already questioning whether “hyperscale spending” will deliver promised returns. A Democrat-controlled Congress could put additional pressure on tech stocks and tip an already shaky stock market. “Weaker equities, softer growth expectations, lower yields, and potentially a weaker dollar would likely support gold.”
Executive and “Emergency” Powers – A Democratic Congress could incentivize President Trump to expand his use of executive orders and “emergency powers” to circumvent legislative roadblocks. The Trump administration has already used executive powers to a significant degree. His entire tariff policy and the War in Iran were predicated on executive authority. World Gold Council analysts said, “The resulting institutional conflict, legal challenges, and less predictable policymaking could raise both political and geopolitical risk premia, potentially supporting gold.”

The bottom line is that a mere shift in party power isn't likely to move the gold market long term. Any election-related market move will likely prove short-lived. Investors will need to see how the new balance of power impacts policy before projecting the more substantial, longer-term market impact.

Five African Countries Have Opened Gold Refining Facilities This Year

Tue, 27 Oct 2026 00:00:00 EST

Five countries have opened gold-refining facilities as African gold producers seek to keep more of their wealth at home.

As it stands, large amounts of raw gold ore leave Africa for refining. The gold later returns to the continent as imports in the form of coins, bars, and jewelry.

Zambia is the latest country to welcome a gold refining facility. According to Business Insider Africa, Minera Refineries Zambia Limited operates the facility, which can refine gold up to 99.99 percent purity.

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According to the Zambian Observer, the company believes the facility will generate more than $1.8 billion in economic value.

African Business Insider reports that the new refinery is expected to “capture more value from its gold production, formalize small-scale mining, and diversify its mineral exports.”

Gold accounts for about $262 million in Zambian exports, about 2 percent of the country’s total.

Zambian officials say the refinery will also help formalize artisanal mining. These are small-scale operations generally run by individuals, families, or small groups using simple tools and minimal mechanization. These mines often operate outside of any regulatory structure.

The hope is that a competitive local buyer and refinery could bring more production into recorded exports and the tax system.

Minera Refineries Zambia Limited managing director Andrew Mukupa Katandula recently outlined a 2-year plan to formalize artisanal mining in Zambia. The scheme includes “targeted pre-financing” for miners and improved transparency in gold production and trade.

Zambia is just the most recent African country to enter the gold processing game.

Earlier this month, a gold refinery opened in Ethiopia. State-owned Ethiopian Investment Holdings holds a majority stake in the $50 million joint venture. It will provide services, including melting, testing, ⁠refining, casting, bar minting, and die-making.

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Prime Minister Abiy Ahmed said the facility will process gold from Ethiopia and elsewhere.

“It enables neighboring countries and regional mining companies to bring their gold to ‌Ethiopia ⁠for advanced refining, certification, value addition, and sale, eliminating the need to export it outside the continent."

Officials say the refinery will process more than 600 tonnes of precious metal annually.

Gold exports serve as one of Ethiopia’s primary sources of foreign exchange, earning the country $5.6 billion during Ethiopia’s 2025/26 fiscal year.

A month earlier, state-owned Raffinerie Nationale d’Or du Burkina Faso began operations in Ouagadougou. According to Business Insider Africa, this facility will process, assay, certify, and store gold domestically, with an initial capacity of around 515 tonnes per year.

Gold accounts for nearly 94 percent of Burkina Faso’s export earnings.

President Ibrahim Traoré said the refinery will help the country move beyond mineral extraction and “develop the full value chain locally.” He went on to say, “Our ambition goes beyond gold.”

“We want to make the mining sector a driver of industrial transformation.”

Meanwhile, a high-purity gold refinery opened in Lagos, Nigeria, in January, and in the Democratic Republic of the Congo in March.

African leaders hope development of domestic refining capacity will keep more African wealth in Africa. It could also drive job creation and boost local gold jewelry production.

Gold and Silver Hammered Again — But Buyers Aren't Giving Up

Mon, 26 Oct 2026 00:00:00 EST

Gold and silver are attempting to regain their footing after another brutal week. Gold plunged roughly 4%, finishing just above $4,000 an ounce in its sharpest weekly decline since June.

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Silver fell nearly 6% to around $54.50 — its lowest closing level in almost a year. Both metals are trading sideways this morning.

The biggest problem remains the Federal Reserve.

Inflation is stubbornly elevated, and surging oil prices threaten to make matters worse. Brent crude topped $116 a barrel last week amid escalating Middle East hostilities, including renewed Houthi attacks on Saudi Arabia. Oil has retreated somewhat this morning amid hopes of easing tensions with Iran.

But here's the strange part: Gold fell sharply even as Treasury yields declined and the dollar weakened — developments that ordinarily favor precious metals. Instead, traders fear the Fed will keep interest rates elevated longer or raise them again in December.

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Central bankers meet Wednesday and are expected to hold rates steady, but their guidance could matter more than the decision itself.

Meanwhile, underlying demand for gold tells a different story.

Global gold-backed exchange-traded funds attracted a record $31 billion during the third quarter, according to the World Gold Council, pushing holdings to approximately 4,256 metric tons. China's central bank purchased another 23 tons in September, bringing its reported reserves to roughly 2,410 tons.

Indian gold buying has also improved during the festival and wedding season as lower prices attract bargain hunters.

Silver has suffered particularly heavy speculative selling, with futures traders dramatically reducing bullish positions. Yet supply concerns persist. Major producer Fresnillo recently reported an 11.6% annual decline in third-quarter silver production.

More volatility could be coming.

Beyond Wednesday's Fed announcement, Thursday brings new economic growth and inflation reports.

Gold is struggling around the psychologically important $4,000 level, while $50 represents a potentially important support area for silver.

The short-term charts look ugly. But Washington's massive debts haven't disappeared. Inflation hasn't been defeated. Central banks haven't stopped accumulating gold. And geopolitical instability continues threatening the global economy.

The Fed may be able to push precious metals prices around in the short run. What it cannot do is manufacture sound money, eliminate government debts, or restore the purchasing power Americans have already lost.

Investors shouldn't confuse a painful correction with the end of the bigger gold and silver story.