The Case Against Gold -

There's a case to be made against gold right now. 
And that bearish narrative is driving the markets right now. 
In this week's Midweek Memo podcast, Mike Maharrey makes the case against gold — and argues that it isn't very good. He explains why the perception currently controlling the markets will eventually be overwhelmed by reality. 
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Mike opens the show, telling the audience he has turned into a gold bear — at least for now. 
<blockquote>
"That’s probably not what you expected to hear leading off a precious metals podcast, eh? I’m supposed to be selling you gold and silver. But I’m not here to give you some slick sales job. I’m not going to lie to you. My job is to report reality, and right now, the reality is the bears are in control of the gold and silver market.
"The reality is that there is a case to be made against gold. I’m going to make that case today. And I think you’ll find it’s not a very good one."
</blockquote>
Mike emphasizes that bearish sentiment is controlling the markets.
<blockquote>
"As one analyst put it, 'Wall Street has thrown in the towel on gold.'
"Now, let me be clear. I’m not saying it should. But that’s what’s happening, and I think that sentiment is going to prevail in the near-term – until the narrative is proven wrong."
</blockquote>
Mike notes that it's important to put the recent sell-off in perspective. 
<blockquote>
"Pretty much everything is selling right now. Stocks are down. Treasuries are down. Most things are generally down since the war started. It appears that, amid the turmoil in the markets and uncertainty about the Iran war, investors are shifting to cash and taking a wait-and-see position. The dollar is up since the war started (at least compared to other currencies. Oh, and they’re probably buying a lot of oil."
</blockquote>
So, what is the case against gold?
<blockquote>
"The primary factor undercutting gold seems to be inflation worries and the perception that the Federal Reserve will keep interest rates higher for longer. There is even some concern that the Fed will have to raise rates if an oil shock drives price inflation higher. Higher interest rates are considered a headwind for gold because the yellow metal is a non-yielding asset. That’s it. That’s why gold is selling. People are unloading their inflation hedge because they are worried about inflation."
</blockquote>
Mike says he agrees that you should be worried about inflation. But not because of an oil price shock. He emphasizes that <a href="https://www.moneymetals.com/news/2024/01/12/common-definition-of-inflation-you-hear-today-is-wrong-government-propaganda-002925">inflation properly defined</a> isn't just "rising prices." It's an increase in the supply of money and credit. 
<blockquote>
"One symptom of monetary inflation is price inflation. Rising oil prices also cause significant price inflation. Energy factors into most everything. So, right now, we have pressure on prices from oil, and we also have inflationary pressures because, as I’ve noted, the money supply is rising rapidly despite the myth of tight monetary policy. All of that said, we will likely see some hot CPI prints in the months ahead. The mainstream will call that inflation, and they believe with all their hearts that the inflation hawks over at the Fed are going to respond with higher interest rates."
</blockquote>
Mike notes that while many people are flummoxed at gold's poor performance during a geopolitical crisis. Isn't gold supposed to be a safe haven?
<blockquote>
"This pattern is actually a bit familiar. We saw similar dynamics in the early days of the 2008 financial crisis and the pandemic. …  Many people forget that gold was in a bull market in early 2008 but suffered a significant selloff at the onset of the financial crisis when the yellow metal fell 32 percent, giving up about 40 percent of its previous bull market gain. Gold then took off and soared by over 153 percent over the next few years."
</blockquote>
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Mike points out that when stocks and bonds tank, many investors sell gold to raise cash to cover margin calls and short positions. That dynamic seems to be in play today. He also notes that there is significant turmoil in the private credit market.
<blockquote>
"In a recent interview, Verified Investing market strategist Gareth Soloway said there are already 'severe cracks' in the private credit market. He noted that several big private income funds (funds that invest in private debt) have started “gating” investors. In effect, they are placing limits on withdrawal requests."
</blockquote>
This could be the pin that finally pops the debt-riddled, bubble economy.
<blockquote>
"How this plays out will depend on how long the war continues. The longer the conflict goes on, the more likely bubbles will begin to pop."
</blockquote>
That leads to why Mike thinks this prevailing bearish narrative surrounding gold isn't very good. 
<blockquote>
"You’ll notice that we’re talking about perceptions here. The perception is that inflation is going to take off, and the Fed is going to do Fed things to fight it. But what about reality? I don’t think the Fed is going to raise rates. I’m not even certain the Fed will hold rates higher for longer. In fact, I believe we’re going to see more rate cuts much sooner than many people expect.
"That’s because this war may well be the pin that finally pops the debt-riddled bubble economy. I don’t care if there are inflation worries or not. I am almost certain that the central bank will respond to an economic crisis the same way it always has. It will slash rates. It will launch quantitative easing. It will seek to rescue the economy and worry about the inflationary effects later. What we’re talking about here is stagflation."
</blockquote>
Mike reiterates that the central bank is still in a Catch-22. 
<blockquote>
"I believe that in the not-too-distant future, it will have to pick between inflation and propping up the economy with easy money. When it hits that crossroads, I believe it will choose inflation. When the easing train starts running down the track, I want to have gold – and a lot of it."
</blockquote>
Mike concedes that gold bugs may have some sleepless nights in the days and weeks ahead. 
<blockquote>
"Until market sentiment gets off this notion that interest rates are going to stay high or get higher (they aren’t really high now, historically speaking), gold (and silver) will continue to face headwinds."
</blockquote>
But Mike emphasizes that his near-term bearish sentiment doesn't mean he's selling gold and silver. 
<blockquote>
"That seems insane to me in a world where we're likely to face a declining economy and rising inflation. I don't want less gold, I want more of it. That means I view these sub-$5,000-an-ounce prices as a nice buying opportunity. In the long run, I sure as heck don't want to be sitting on a bunch of fiat dollars as the federal government continues to run massive deficits and drive the debt higher. I don't want to be sitting on a bunch of fiat dollars if the economy goes into a tailspin. And I sure as heck don't want to be sitting on a bunch of fiat dollars when the Fed cranks up the money-printing machine to rescue the aforementioned economy in a tailspin!"
</blockquote>
To wrap up the show, Mike notes that while the paper-driven silver price is all over the place, the Chinese have been gobbling up physical silver.
<blockquote>
"China imported 790 tonnes of silver through the first two months of 2026, with 470 tonnes flowing into the country in February alone. This is happening in a silver market that is already short on metal. The global silver market is expected to run its sixth structural deficit in 2026 as silver investment remains strong."
</blockquote>
Mike wraps up the show with a call to action.
<blockquote>
"That’s my not-so-good case against gold. If you're also bullish long term, take advantage of gold and silver on sale. Get real money that will hold its value over time. Call 800-800-1865."
</blockquote>
<h2>Articles Mentioned During the Show</h2>
<a href="https://www.moneymetals.com/news/2026/03/19/gold-the-federal-reserve-and-a-catch-22-004773">The Federal Reserve and a Catch-22</a>
<a href="https://www.moneymetals.com/news/2026/03/19/national-debt-quietly-eclipses-39-trillion-004774">National Debt Quietly Eclipses $39 Trillion</a>
<a href="https://www.moneymetals.com/news/2026/02/26/could-the-ai-bubble-pop-and-cause-a-credit-crisis-004722">Could the AI Bubble Pop and Cause a Credit Crisis?</a>
<a href="https://www.moneymetals.com/news/2026/03/03/how-has-war-impacted-the-gold-price-in-the-modern-era-004733">How Has War Impacted the Gold Price in the Modern Era?</a>

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