Metals Tell the Truth About the Economy

Gold and silver are sniffing out the inflationary regime. Rising together, even after pullbacks, the historic run in precious metals is part of a desperate SOS signal for the economy.

The Fed isn’t the only one printing money. Trump is floating plans for 50-year mortgages and payments for veterans, seeking any justification for “stimulus” that he possibly can. These measures expand the money supply as well, either directly or by increasing the amount of debt in the system.

Investors turn to gold when confidence in fiat currency weakens, when real returns look fragile, and when policymakers appear boxed in. Today’s environment checks all three boxes. Large and sustained deficits, higher debt servicing costs, and political incentives all favor spending over restraint, even if it means crushing the value of the dollar. Lawmakers and bankers have a powerful bias toward monetary accommodation, and gold’s sustained ascent reflects the growing spectre of a crushing economic collapse caused by interventionist policies.

Gold is up over $80, a record high above $4,590. Silver is up over $4, a record high above $84. Prices are melting up for a reason, and it’s not good. While it’s exciting for those of us who own gold and silver, keep in mind that it foretells economic hardship for most Americans.

— Peter Schiff (@PeterSchiff) January 12, 2026