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Perspective
By Rich Checkan
Sell gold? Here?
Maybe…
I have made no secret of the fact that I am a big fan of buying gold at current prices. I do believe that gold - $100 below all-time highs – is dirt cheap. And silver is even cheaper.
I believe the rhetoric in the markets serves to confuse investors. It suggests that interest rates are high at 3.5%. They are not.
It suggests that higher interest rates are bad for gold. And while 3.5% is a much higher interest rate than the zero-interest rate policy (ZIRP) we experienced for a decade, it is historically very low.
In fact, given the current official rate of inflation, it yields absolutely no real rate of return. If you believe – as I do – that the official inflation rate is actually much lower than the real rate of inflation, an interest rate of 3.5% actually yields a negative real return.
In plain English… that is a loss.
I do believe you are better off buying gold here at lower Spot Prices and lower premiums for coins and bars.
BUT… I also understand the case for selling some gold and silver here as well.
Let me explain…
Gold Allocation
If you have followed us for any period of time, you know we are strong advocates for holding a small allocation of gold for wealth insurance. We favor 10% of net worth in gold as a store of purchasing power, with high liquidity, for a potential financial crisis you hope to never have.
That being said, I recently spoke with a client who purchased that 10% allocation of gold in 2003. It was a $53,000 investment at the time.
Today, that same gold holding, roughly 140 troy ounces, is worth $630,000.
Because of gold’s rise over the past few years, his 10% position in gold for wealth insurance is significantly over-weighted. While the value of his wealth insurance grew from $53,000 to $630,000, his net worth did not grow from $530,000 to $6.3 million.
After having subsequent conversations with several clients, it is safe to say he is not alone.
In the past, many of our clients have looked to sell gold for the following reasons…
• Pay down credit card debt
• Make ends meet
• Simplify estates for heirs
• Meet margin calls
Now, I am hearing “re-balancing” as the primary reason to do so.
Sticky Inflation
Set aside the conflict in Iran, the impact on oil prices, and the follow-on impact on the prices of pretty much everything we consume.
Even before the conflict in Iran, inflation had proven to be sticky.
Try as they might, Federal Reserve Chairman Jerome Powell and his merry band of economists could not coax Consumer Price Inflation (CPI) down to their desired target of 2%.
They were able to achieve that rate of inflation for a month or two here and there, but annually, they could not get it down below 3%.
And now, with significantly higher oil prices, inflation is moving higher once again.
As consumers, we feel it.
The most glaring reality is at the pump when we fill our cars with gasoline. It takes $50 to fill a tank that used to cost $30 to fill.
But it does not stop there.
Since our economy was built on oil and gasoline, and since everything we consume is affected by the increased cost of oil and gasoline, everything we consume is starting to cost more than it did at the end of last year.
Wages are not keeping up. Where will the extra money needed to break even come from?
Wealth Insurance
This seems to be the end game for most of our clients considering selling a little gold to re-balance.
The rationalization is simple.
They purchased gold for a future potential crisis. They allocated a reasonable 10% of net worth. Gold prices skyrocketed due to decades of fiscal mismanagement by Congress. Consumer prices skyrocketed as well.
Since their current allocation to gold is significantly higher than what they originally allocated, and since they have higher consumer prices at the gas pumps and across the board… why not sell some gold?
They meet their short-term “emergency” needs. They bring their portfolios back into balance. They sleep peacefully at night because of the sound financial decisions they made a decade or two ago.
It is difficult to argue with this reasoning.
So, even though I remain committed to the value gold and silver represent here, I fully understand why you might consider selling some.
Of course, we can help you with that as well.
Send us an email. Call us toll free at (800) 831-0007.
—Rich Checkan
Editor's Note: Mark Thornton is a Senior Fellow at the Mises Institute, and was the Peterson-Luddy Chair in Austrian Economics from 2021-2023. He will also be the featured guest of our next On the Move Webinar on June 17th at 7 pm EST. Don't miss it! Register here.
Feature
Precious Metals Work
By Mark Thornton
Over the last year, the precious metal markets have seen historic increases and decreases in price. This, of course, is the result of the workings of supply and demand, but there have also been cries of market manipulation.
I have laid out the supply and demand conditions both in the pure free market and under current conditions in the real world. Several forms of manipulation, such as changing margin requirements are expected, and other forms of manipulation, such as mysterious shutdowns and slowdowns can be anticipated, but not timed. Above all else, organized markets and political actors will act to save themselves first.
As a result, I have declared several times over the last year that when prices began to reach record levels—particularly when silver approached $50 per ounce—that precious metal markets are going to experience “growing pains” including these manipulations.
Of course, all market activities “manipulate” the market in terms of changing prices and quantities exchanged, but in this case, commentators are often pointing to alleged immoral or illicit activities.
Our primary understanding of these markets is that—in a total free market model, where gold is literally money—it has a remarkable stability of purchasing power over the long haul relative to fiat currencies. Major deviations of price trend or purchasing power from the inflation trend are the result of government intervention, especially structural changes in monetary policy, institutions and personal changes. Ultimately, deviations of price from long-run trends in inflation are the result of real-world shorter run adjustments in supply and demand, such as changing expectations, the outbreak of war, and developments in the business cycle.
Prior to the bull market in gold and silver, some commentators, including myself, pointed out reasons to suspect that gold might experience an increase in demand and that the realities of precious metal supply in terms of mine output would amplify price adjustment to those increases in demand. Those commentators turned out to be correct.
Prior to the recent sharply lower prices, some commentators pointed out that any decrease in demand could also have sharp negative effects on prices. Those commentators were also correct. In terms of manipulation, political forces have turned what would be a normal correction--a normal burn off of market activity--into a wildfire of an intentionally set conflagration.
At the time, I described President Trump’s appointment of Keven Warsh, the most hawkish of Trump’s four potential nominees as the primary cause. It was said at the time that with the Warsh nomination, interest rate cuts were now off the table, and this would be bad for gold prices in the short run. Of course, the big banks are typically consulted on such nominations and have prior knowledge of the appointment. If they had such knowledge they could plan their moves ahead of the market. The large banks that influence the Fed and its appointments are also some of the same “bullion banks” who manage those markets. With the actual announcement prices broke down and a collapse as a lengthy chain of stop-loss sell orders were triggered. This would be a brilliant way to pay back one’s political supporters if they were able to short this move in the market!
It is important to list some examples of those who decreased their demand, becoming suppliers, how that worked for them, and establish that these markets “work.” Among all the various reasons why precious metals have been sold domestically with buyers becoming sellers are the following:
1. Speculators and traders: They rode the markets up and then decided to take profits and switch to other markets, notably oil even before the outbreak of hostilities. This type of trading is dependent on valuation of relative performance and speculation of future conditions, including inside information. Meanwhile, “manipulators” were also helping to push the markets up in anticipation of taking advantage of shorting the markets.
2. Liquidity: We know that certain investments—notably private equity and private credit—are experiencing so-called liquidity issues because the Fed started an emergency program in December and redemptions of this “sequestered” capital category (not openly traded in markets) have been blocked by the gatekeepers. This means that these assets are not generating enough revenues to cover expenses and debt obligations and can’t be readily redeemed for cash. The Fed’s $40 billion a month program of Reserve Management Purchases (RMPs) seems to have been sufficient in December of 2025. If this is a significant ongoing problem, then expect this program to be expanded.
In both of these cases, precious metal markets performed as expected. People shifted currency into precious metals and then shifted back out to address liquidity problems and to address changing market conditions. It worked in an extra special way for those who shorted the market coincidentally with the Warsh nomination.
People are also widely confused about the role of gold in the most recent Israel-Iran War that has ensnarled President Trump into a highly untenable position. People think that war is good for gold and should go up. This neglects the fact that the ruling class of the Middle East already owned a great deal of gold and war has completely stopped the flow of revenues from their petrochemical businesses. The entire region has become sellers to finance personal and governmental expenses, to fight the war, and to improve their liquidity-cash positions.
This selling of gold is indicated by the discount price it is selling at in Persian Gulf markets and gold has undoubtedly served its primary role as a monetary asset for deeply troubling times just as it would for others during hyperinflation or during a global war.
The market for gold works, but sometimes it works in mysterious ways. The global market does not necessarily follow our own personal outlook, plans, and actions but we can ultimately expect reversions to the trend based on runaway global government spending, borrowing, and printing.
Editor's Note: Bill Bonner is the Founder of Bonner Private Research and owner of the Agora Companies. This article was originally published by Bonner Private Research on May 26, 2026. You can subscribe to Bonner Private Research here (save 62% on an annual subscription with this link).
Hard Stuff
Is Time on Your Side?
By Bill Bonner
Measured in gold, the dollar has lost 99.111% of its value since 1971. We got the full value of the dollar 54 years ago. Our children get only a chemical trace of it.
The latest news, Common Dreams:
‘Biggest Wealth Divide in Modern History’...Shocking Reality of US Economy
Data released by the University of Michigan and Gallup this week showed US consumer sentiment cratering even as stock markets hit record highs.
“Absolutely incredible,” commented Kobeissi Letter. “Over the last six years, the S&P 500 has risen +130% while US Consumer Sentiment has collapsed by -55%, to its lowest since data began in 1952. We are witnessing the formation of the biggest wealth divide in modern history.”
What’s going on?
How about this: the rich are getting richer; the poor are getting poorer.
But this is not just a financial divide...it is evidence of a fraudulent economy...and of a demographic chasm, now opening up in American society.
Looking back at the Thomas Massie defeat, we see how the wealth divide played a leading role. First, it was a defeat that was completely paid for by Big Money people who may have never even set foot in Kentucky. Massie consistently voted against foreign aid...even to Israel. The Israel-Firsters wanted him out. They got him out — at a cost of $32 million dollars.
Second, this was a battle won by Boomer voters. IJR:
Seventy-two percent of voters between the ages of 26 and 35 supported Massie, while 16.2% backed Gallrein, according to a Quantus Insight poll from May 13. A majority of voters ages 66 to 75, 61.8%, supported Gallrein and 27.1% of that age group supported Massie.
Massie also held a 37-point lead among voters ages 36 to 45 and a 16-point lead among those ages 46 to 55, according to the poll. Gallrein led among voters ages 56 to 65 by a 54% to 36% margin.
A separate poll from Friday found that voters ages 18 to 29 supported Massie by 81.5%, while voters ages 30 to 44 supported him by 70.7%, according to Big Data Poll. Voters over the age of 65 supported Gallrein by a 61.1% to 38.9% margin. One month prior, 78.5% of voters ages 17 to 29 supported Massie and 65% of voters over the age of 65 supported Gallrein, Big Data Poll found on April 8.
The same survey found that Gallrein only held a lead with voters over the age of 65.
Why the big gap? The Boomers, apparently, still cherish the post-WWII idea of a virtuous Israeli state...and can’t imagine that it could be contrary to Americans’ real interests. But a deeper cause may be the aforementioned wealth divide.
In a delightful essay signaled to us by our old friend, Doug Casey, John Carter explains that the Baby Boomers did not get rich simply because they were lucky:
‘The baby boom generation took out tens of trillions of dollars in debt in their descendants’ names to pay for social welfare programs that only baby boomers will enjoy.’
We could add that they also entertained and flattered themselves with unnecessary wars at a cost of $10 trillion or so. And now, who will pay America’s $39 trillion in government debt? Not the boomers.
Speaking as a boomer, our lives have been marked, from cradle...to fast-approaching grave...by improvement. There were technical improvements — air conditioning, power steering, cleaner air, TV, TikTok, the internet, open heart surgery, and so forth.
We also were generally able to find jobs, with rising incomes and rising assets. And all we had to do, in the 1970s, was to buy a nice house and some nice stocks...and then follow Bernard Baruch’s advice. He said he got rich thanks to his ass; he bought property and sat on it.
For boomers, if you avoided getting your ass killed in Vietnam, or wasting it on idleness, drugs, alcohol...fast cars or fast women...things generally turned out alright. Carter writes:
‘For the boomer, deferred gratification always had a payoff.’
‘For the zoomer — and the millennial, and generation X — this has simply not been the case.’
And here’s the key insight:
Boomers have profited from a kind of generational Cantillon effect: they were born close to the time when inflation first began in earnest, meaning that the money they were lavished with would always be worth more than whatever spare change their children could scrape together
Richard Cantillon was an associate of John Law. He noticed that the first people to get the inflated money benefitted from it most. They could spend it as if it were real.
Later, the value of the fake money went down. As we’ve pointed out many times, measured in gold, the dollar has lost 99.111% of its value since 1971. We got the full value of the dollar 54 years ago. Our children get only a chemical trace of it.
We were lucky. And faithless. We didn’t plant trees for our grandchildren. We cut them down to enjoy a warm fire for ourselves.
We could but on our ‘baggies’ and surf the big waves...in the job market, the housing market and the stock market. We could increase our dollar wealth as much as 50 times (in the Dow).
And the house we bought for peanuts in 1975 is now so expensive our own children can’t afford it.
Editor's Note: Brett Eversole is the Editor of and Lead Analyst for True Wealth, True Wealth Systems, and DailyWealth. This article was originally published in DailyWealth on May 27, 2026. To subscribe, click here.
The Inside Story
The Big Idea Is All That Matters
By Brett Eversole
Investors drive themselves crazy worrying about timing...
When will you buy? When will you sell? How can you time things to maximize your profits?
These seem like the most important questions. But according to investment legend Jeremy Grantham, timing isn't as crucial as you might think...
"When you get [the big picture] right, [outperformance] isn't even that difficult," Grantham said on a recent episode of the Master Investor Podcast.
Grantham co-founded Boston-based asset management firm GMO in 1977. He has invested through every major investment cycle of the past 60 years. And for him, timing isn't what matters...
"You can't really implement [timing] bad enough not to win if you get the big ideas right," he continued.
It's counterintuitive, but it's often true. And I experienced this firsthand last year...
Double Your Money Despite Terrible Timing
I knew my timing was bad...
Last October, I was heading into our annual Stansberry Conference in Las Vegas. I knew the market had pulled ahead of my idea before I walked on stage.
But I also knew something else... I had the big picture right. This story wasn't going to fizzle out in a few months.
So I stopped stressing about the timing, and I shared my idea.
"Gold is headed to $8,000 an ounce," I told the crowd.
It was a gutsy call at the time... But it was even gutsier when I put the research together in the weeks prior. You see, gold had soared by about $1,000 an ounce in the two months before I shared my idea.
I told the crowd that a correction was likely after the recent rally. But the big-picture setup was strong.
Both of those ideas turned out to be correct.
The day after I spoke, gold dropped 5.4%. It was the worst one-day fall in years. And as you can see, the timing of my bullish call was about as "bad" as you could get...
The precious metal correction was on. I had shared six recommendations on stage. All of them began falling.
But that was the short term. The big picture is what really matters – just as Grantham teaches us.
The story for precious metals hadn't changed. The analysis I used to predict $8,000 gold was still in place.
And in time, all six recommendations eventually moved much higher.
Within a few months, three of the six ideas I shared more than doubled. The others rallied between 20% and 40%.
Precious metals have pulled back in recent months. But I'm still not worried. The lesson holds true...
Investors spend far too much effort worrying about perfect timing.
When you buy seems crucial. When you sell seems just as important. But you could have the best timing in the world... and it wouldn't matter one bit if you get the big picture wrong.
Instead, follow Grantham's advice. Focus on the big idea. Make sure you understand the reasons a trend is underway. And make sure those reasons will persist.
Once you've done that – and done it well – the timing will be less important than you think. You'll invest with less stress. And your portfolio will grow more than ever.
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