This is a Gift From the Market Gods
Precious metals investors were just given a gift from the market gods.
The correction in precious metals prices had NOTHING to do with fundamentals and EVERYTHING to do with sentiment/ positioning. As I noted yesterday, going into the correction, both gold and silver were more overbought and overextended above their 50-day moving averages than at any point in decades.
Gold:
Silver:
Put simply, these precious metals were in a kind of mini-bubble that was looking for a needle to burst. And the needle arrived in the form of Kevin Warsh, President Trump’s pick for Chairman of the Board of Governors of the Federal Reserve.
Warsh has a history of being hawkish. Indeed, once he left the Fed in 2017, he’s launched some of the most scathing attacks on the Fed of any public official.
Some prior Warsh comments of note:
- Fed officials should not be treated as “pampered princes.”
- The Fed frequently comments on “matters outside its remit” which has led to “systemic errors”
- Quantitative Easing (QE) is “reverse Robin Hood”, i.e. stealing from the poor to give to the rich. He’s constantly criticized monetary easing and the Fed.
In this context, President Trump’s nomination of Kevin Warsh to the position of Fed Chair was seen as a hawkish move. This ignited the $USD, which popped the mini-bubbles in gold and silver.
It is critical to note however, that NOTHING has changed about the fundamentals that were driving the bull market in gold and silver.
The U.S. continues to run large-scale fiscal deficits. Despite bringing in ~$300 BILLION in tariff revenue, the Trump administration is spending so much money that the U.S. continues to have a fiscal deficit of over $1.7 TRILLION in 2025.
And all of this is happening at a time when the economy is clocking in at over 4%!
To conclude, today the financial system is experiencing…
1) Crisis-levels of fiscal spending.
2) A Fed that will aggressively ease monetary conditions.
3) A “run it hot” economy.
Again, all of these items are HIGHLY inflationary. And in this context, the pullback in precious metals and precious metals miners is a gift from the market golds.
The time to load up on key precious metals plays is NOW before the next major bull run begins.
On that note, our Special Investment Report titled Survive the Inflationary Storm details FIVE secret investments you can use to potentially make extraordinary gains. These are HIGH OCTANE positions that rose 75%, 140%, 150%, 180%, 280% and an incredible 574% in 2025! And I wouldn’t be surprised to see them repeat this performance in 2026.
Normally I’d charge $499 for this report as a standalone item, but we in light of what is unfolding today, we making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
