Gold and Silver Rally as Fiat Falters -

Gold is at new record highs, and silver is surging. 
Meanwhile, the dollar is fading.
In this episode of the Midweek Memo podcast, host Mike Maharrey discusses the dynamics driving the latest leg up in the precious metals bull run, focusing specifically on ongoing de-dollarization, its underlying reasons, and the ramifications.
As the dollar loses ground, gold and silver seize its territory.
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<blockquote>
"Easy money is one hell of a drug, eh?"
</blockquote>
Mike notes that the gold rally started last week after Federal Reserve Chairman Jerome Powell hinted that the central bank would cut interest rates at the September meeting. 
<blockquote>
"Lower rates are considered bullish for the metals, given that they are non-yielding assets. A lower rate environment means a lower opportunity cost for holding them. "But I think there’s more to it. I think a lot of people understand that rate cuts are inherently inflationary. And by the way, monetary policy is not restrictive right now – at least not from a historical standpoint. It’s loose and has been throughout the entirety of this tightening cycle. Policy got tighter. It never got tight. Now it’s about to get even looser."
</blockquote>
There is already a lot of inflation baked into the system. And now the central bank plans to add more. 
<blockquote>
"I’ve mentioned several times that the money supply has been increasing for over a year. That is, by definition, inflation. If we’re going to add inflation to inflation – you want to have an inflation hedge."
</blockquote>
Gold is trading at record highs, and silver is at a 14-year high. Mike points out that while Powell's dovish messaging kicked off the rally, there are other factors driving the metals higher as well, including safe-haven demand as investors digest the uncertainty created by a court opinion striking down the president's authority to levy tariffs and worry about a fall stock market swoon.
Mike noted that U.S. Treasuries have not benefited from the risk-off pivot.
<blockquote>
"Interestingly, the 10-year Treasury yield was up yesterday, indicating that safe-haven investors weren’t all that interested in U.S. debt. I’ve talked about this drift away from U.S. bonds as a safe haven buy before. This is a really significant shift that I think a lot of people have missed. It supports the view of Jim Grant and other analysts I respect who believe we are entering into a secular bear market for bonds."
</blockquote>
Mike wonders out loud if U.S. investors are starting to hop on the gold and silver bandwagon.
<blockquote>
"As I’ve talked about before, Americans have largely been absent during this gold bull run. It has been driven primarily by central bank buying and Asian investment. The same is true for silver."
</blockquote>
Mike points out that this latest bull rally in precious metals is happening at the same time the dollar is losing ground globally. 
<blockquote>
"For the first time since 1996, foreign central banks hold more gold than U.S. Treasuries as the world continues to de-dollarize."
</blockquote>
So, why are countries spurning the dollar?
Many are worried about the <a href="https://www.moneymetals.com/news/2024/02/29/could-weaponization-of-the-dollar-as-a-foreign-policy-billy-club-accelerate-de-dollarization-003013" rel="noreferrer">weaponization of the U.S. currency</a>. They are also concerned about America's fiscal trajectory as it becomes clear that there is no political will to address the borrowing and spending. 
<blockquote>
"I mean, if I told you my buddy was 100,000 in debt and was taking out new credit cards to pay off old balances, would you be interested in rushing off to loan him money? That’s basically where we are. The U.S. government is your drunk uncle with a gambling problem and a credit card rapidly approaching the limit."
</blockquote>
Why does it matter?
<blockquote>
"In a nutshell, the United States needs the world to need dollars. The U.S. depends on this global demand for dollars supported by its reserve status to underpin its massive government. The only reason Uncle Sam can borrow, spend, and run massive budget deficits to the extent that it does is the dollar’s role as the world's reserve currency. It creates a built-in global demand for dollars and dollar-denominated assets. This absorbs the Federal Reserve’s money creation and helps maintain dollar strength despite the Federal Reserve’s inflationary policies."
</blockquote>
Mike emphasizes that he doesn't think the dollar is about to collapse. 
<blockquote>
"It’s like water eroding rock. It takes a long time. But make no mistake, the erosion is occurring, and once that rock is gone, there’s no putting it back."
</blockquote>
But even a moderate de-dollarization spells trouble for a U.S. government trying to finance a massive debt with more borrowing coming down the pike.
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Mike wraps up the show talking about a story that keeps popping up on social media. 
<blockquote>
"According to the reports, exploration surveys indicate a deposit of 31 million tonnes of ore in Uganda that would yield approximately 320,158 tonnes of refined gold, valued at $12 trillion."
</blockquote>
To put that in perspective, the World Gold Council estimates there have been 216,265 tonnes of gold mined throughout human history.
<blockquote>
"In other words, the Ugandan government claims it has discovered gold reserves that are 56 percent larger than the total amount of gold mined — ever. If this seems a little suspicious, that’s because it is."
</blockquote>
Mike breaks down the numbers and shows why the story almost certainly has to be bogus.
So, why does it keep popping up?
<blockquote>
"It could be that people are drawn to fantastic stories – and a $12 trillion gold deposit is certainly fantastic. But there could be more to it. I’m speculating here, but it could be that people who would prefer you not be so bullish on gold keep recycling this tale. I’m talking about Bitcoin pumpers or government actors who want you to believe gold isn’t all that valuable. After all, if we have this massive discovery, gold isn’t quite as scarce as we thought, and therefore less valuable."
</blockquote>
But make no mistake. Gold is scarce. And it is valuable. 
That leads to a call to action. Get gold and silver today to shield yourself from the relentless devaluation of fiat currency. Call 800-800-1865 and talk to a Money Metals precious metals specialist today.
<h2>Articles Mentioned in the Show</h2>
<a href="https://www.moneymetals.com/programs/iras" rel="noreferrer">How to Include Physical Gold and Silver in Your IRA</a>
<a href="https://www.moneymetals.com/news/2025/03/11/de-dollarization-gold-and-a-shift-to-a-multipolar-world-003898" rel="noreferrer">De-Dollarization, Gold, and a Shift to a Multipolar World</a>
<a href="https://www.moneymetals.com/news/2025/09/02/why-silver-may-hit-50-in-september-004308" rel="noreferrer">Why Silver May Hit $50+ in September</a>
<a href="https://www.moneymetals.com/news/2025/08/10/weak-treasury-auction-flashes-warning-lights-in-the-bond-market-004254" rel="noreferrer">Weak Treasury Auction Flashes More Warning Lights in the Bond Market</a>

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