Let's Get a Little Perspective!

Big sell-offs in gold and silver are scary. They’re unnerving. And they are inevitable.

In this episode of the Midweek Memo podcast, host Mike Maharrey puts the recent correction in gold and silver in perspective.

The announcement of Keven Warsh as Trump’s new Federal Reserve Chairman spooked the markets because of his perceived hawkishness, and that sparked the sell-off. Mike explains why it was an overreaction, and that hawkishness probably won’t matter when Fed policy meets current economic realities. He also shares some other thoughts about the sell-off, adding additional perspective for your consideration.

!!–Product-Random-Featured-All–!!

Mike opens the show lamenting the fact that he’s still cold.

“It got so cold in Tampa Bay over the weekend that they had to warm the ice during the outdoor hockey game between the Lightning and the Boston Bruins in Tampa. They were worried the ice temperature would drop too low and cause cracking. I’m not kidding. This is a thing. It’s not a thing you would think would happen in Florida, but alas.

“But I’ll be honest. It wasn’t so bad from my point of view. That’s because I was in Kentucky just a few days earlier, where there was about 11 inches of snow and temps as low as 6 degrees. Thirty doesn’t see so bad when you’ve been in six!

“It’s about perspective, right?

“Well, a lot of people need to keep their perspective when dealing with big corrections in the gold and silver markets!”

Mike concedes it was one heck of a correction, providing an overview of the sell-off’s timing and depth.

“But consider this: after the big plunge on Friday, when so many people were declaring the gold and silver bulls dead, gold was still up 13 percent since the beginning of the year. And silver was still up 18.7 percent since the beginning of the year. Perspective, right?”

Mike points out that two headlines sparked the sell-off on Friday.

The first was President Trump’s announcement of Kevin Warsh as his new Fed chief.

“Everybody seems convinced that Warsh is a ‘hawkish’ pick, and markets are throwing a temper tantrum because they think he might take the easy money punch bowl away. They might be right. But they probably aren’t.”

Mike highlights Warsh’s biographical information, including the fact that he was critical of the Fed’s easy money policies during the Great Recession.

“However, in recent months, Warsh has aligned himself with Trump and criticized the central bank for dropping rates too slowly.”

Mike concedes that Warsh has said some of the “right things.”

“But you know who else said the right stuff? Alan Greenspan. He was considered a sound money guy. And yet he was the Fed chair who pushed interest rates down in the 90s to boost economic growth and ended up blowing up the dot-com bubble.”

Mike also highlights another headline that exacerbated the gold and silver sell-off — hotter than expected producer price data.

“Producer prices are generally considered a leading inflation indicator, as companies pass at least some of their higher costs onto consumers. That means we could see a big jump in CPI in the next month or two, which would further dampen hopes for interest rate cuts, thus creating more headwinds for gold and silver.”

Mike goes on to explain why he doesn’t think Warsh will be as hawkish in practice as he is in theory.

!!–Product-Random-Best-All–!!

In the first place, Trump picked him.

“Given his recent rhetoric and Trump’s willingness to give him the chair, it seems likely that Warsh will tend to be more accommodating than Powell, at least initially. And Powell has been pretty darn accommodating. It’s also important to note that Warsh will be just one voice among 12 voting members of the FOMC. He will certainly be a key voice in shaping policy and the face of the Fed, but one man’s hawkishness would not a hawkish Fed make.”

Mike points out an even more significant issue facing Warsh — https://www.moneymetals.com/podcasts/2025/11/12/the-debt-black-hole-004473">the Debt Black Hole.

“Quite simply, a new Fed chair isn’t going to suddenly erase the massive levels of debt in the global economy.”

On top of that, the economy still hasn’t reckoned with the bubbles and malinvestments created by nearly two decades of easy money. We are still due for a bust, and when that happens, all bets are off – as we saw during the pandemic.

“In other words, the economy never reckoned with the monetary malfeasance of the Great Recession era. Instead, the Federal Reserve and the government doubled down and added more fuel for the inevitable fire. That fire will break out, and Warsh will have to deal with it. The bottom line is that Warsh’s perceived policy views will matter little when they slam up against these ugly economic realities.”

Mike sums it up like this:

“In my opinion, the big sell-off in gold and silver on the news of the Warsh nomination is an overreaction and doesn’t reflect any real change in the economic or financial landscape. And that’s really a key thing to grasp to keep the correction in perspective. Nothing fundamental has changed. It was a needed correction sparked by a couple of headlines.”

Mike offers a few other thoughts to put the correction in perspective.

Corrections are normal and healthy in a bull market.
Keep your eyes on the macroeconomic and market fundamentals.
Everything dumped on Friday (except the dollar).
You haven’t lost money until you sell.
Don’t make emotional decisions.
It’s not always about manipulation.

“Could this be the beginning of the end of the gold and silver bull markets? Certainly. But I don’t think it is, for reasons I have been hammering on in this space for months. I think we’re in the early stages of a secular bull market. However, we should constantly reevaluate the situation with the information at hand. Markest do turn. And we should always remain humble. If we aren’t, the market will humble us! There are many factors working together to move markets up and down. The key is to stay calm, avoid emotional decisions, and constantly evaluate the fundamentals.”

Mike wraps up the show, reminding listeners that corrections create buying opportunities. Money Metals has plenty of inventory and even has some https://www.moneymetals.com/buy/specials">silver products on sale below spot. He closes with a call to action – visit MoneyMetals.com or call 800-800-1865 today.