Transcription
Gold and silver have been falling at the fastest rate we've been seeing in more than a decade. And Bitcoin prices are getting hit hard. Why? Because of what President Trump just said. So, if you're an investor, you want to pay attention to this.
President Trump has been very critical of the Federal Reserve Bank. The Federal Reserve Bank is the central bank here in the United States, and their job is to set our economic policy. In plain English, they control interest rates and they control money printing. Well, the Federal Reserve Bank is called the Federal Reserve Bank, but they're actually not federal because they're not a part of the United States government. So, although President Trump has been demanding lower interest rates, he's been asking for more stimulus, the Federal Reserve Bank has been saying no.
Well, the chairman at the Federal Reserve Bank, there's a guy by the name of Jerome Powell. His term is expiring in May 2026. And President Trump just announced his new pick on who is going to lead the Federal Reserve Bank. It's a guy by the name of Kevin Walsh. And that decision is what triggered the gold price crash, the silver price crash, and it also pushed Bitcoin prices lower.
The reason why is because people generally buy assets like gold, specifically when they're concerned about the dollar, because it's a hedge. When you buy gold, it's not producing a lot of economic value like a stock would. When you buy Amazon stock, you hope that Amazon's going to produce bigger profits, produce new products, produce new innovations to be more valuable in the future. When you buy gold, it just sits there and looks back at you. So, it's like insurance. It's a hedge. And people buy gold when they're concerned about the dollar losing value. They buy gold when they're concerned about inflation. They buy gold when they're concerned about the economy because it is a protectionary investment.
And over the last 5 years, we've seen gold outpace the stock market. We've also seen silver outpace gold, and that's not normal. There's only a few periods in history where we've seen gold prices outpace the stock market. One was the Great Depression. Two was the early 1970s during the great stagflation and recession. Three was the 2000.com bubble bursting. Four was the 2008 great financial crisis. And five is now post pandemic. So generally when gold prices are growing faster than the stock market that signals concerns and we've been seeing that happen now.
Now the reason why people have been seeing concerns about the dollar is because number one the government has been spending so much money which means they have to create this money out of thin air. That creation of money out of thin air devalues the dollar causing the price of things to go up. That's inflation. But that also drives more people to gold. Foreign countries around the world like China and Poland and Turkey have also been buying more gold.
But also now a big driver of gold and silver recently has been concerns of what's going to happen to the Federal Reserve Bank because President Trump has been demanding very publicly extremely low interest rates. He has said time and time again that he wants the United States to have the lowest interest rates of any developed country in the world. He's said that he wants 1% interest rates and he's also said that he no longer wants the Federal Reserve Bank to be independent from the government. He wants the Federal Reserve Bank to get their information from the White House on what to do. All these things create uncertainty and it created concerns about what's going to happen to the dollar because investors essentially were saying if we have now a new leader at the Federal Reserve Bank and they do what President Trump says and they really work to weaken the dollar and they are going to flood the economy with more dollars, we're going to have a dollar crisis and that means we need more gold.
Well, when President Trump announced that Kevin Worsh is going to be his pick, investors had a little bit of a sense of relief. The reason why is because Kevin Worsh used to work at the Federal Reserve Bank. He worked there during the 2008 great financial crisis under Ben Bernaki. And when he was there, he was a big proponent of higher interest rates. He was not one of the people that wanted a lot of quantitative easing. He did not want to see a lot of lowering of interest rates during that crash. And so during that time he was a big advocate for wanting to avoid inflationary issues.
Now he is saying that we want lower interest rates but he's saying that we can balance the inflation problem that could come from lower interest rates by tightening the balance sheet essentially pulling money out of the economy. So what investors are saying is that he is a more level-headed person. He's not somebody that is a crazy person that would just come in and just stimulate stimulate stimulate and destroy the value of the dollar. That's essentially what Wall Street is saying, not word for word, but that's essentially what Wall Street is saying is that he's coming in as a guy that wants to protect and preserve the value of the dollar.
But not just that, because of his previous experience at the Federal Reserve Bank, investors are saying that he's going to want to preserve the independence of the Federal Reserve Bank. He's also publicly said this that the Federal Reserve Bank's independence is important, but there are ways for us to learn and work with the White House. So, it wasn't a very aggressive we are going to do what the White House says. And that gave a sense of calm for Wall Street investors saying, "Okay, maybe that means that our dollar is going to be not hurt as bad. Maybe that means that we're not going to see as much inflation as we originally thought. Maybe we're not going to see as much dollar devaluation as we thought." And that is what then triggered a sell-off for gold and silver.
Now the second part to this is people do get scared especially during a time where gold and silver prices have boomed so much. Silver prices really boomed in the last part of 2025 and the early part of 2026. So it saw a very quick very large runup. Gold prices have been going up so significantly and so people have been buying out of speculation. Some people just come in because they want to get rich quick. Especially after you see big run-ups, you start to see people come in without understanding what it is that they're buying. They buy it trying to chase investments. And so when you start to see a little bit of a sell-off and you start to see the news that gold prices are falling really hard, people panic and they sell because they just get scared and that then makes that problem worse.
And this is where now you want to understand what this means for you as an investor. Now, I do want to let you know that on Monday, I have a full video coming out about what's going to be happening at the Federal Reserve Bank, about what Kevin wants to do, about what all these things mean. So, watch that video on Monday if you want to learn more about what Kevin Walsh wants to do and what this means for the Federal Reserve Bank in our economy. But I want to talk more about gold and silver right now.
Because like I've been talking about for many years, the way you win as an investor is not by chasing investments. I don't care if it's a stock, whether it's gold, whether it's Bitcoin, whether it's housing. There's going to be asset cycles where assets go up and they go down. The people that build wealth are not the ones that are chasing investments, but rather have a proper portfolio that fits what is right for them. Because gold prices go up and they go down over the long run. Gold prices go up. But like we've talked about, gold prices don't always go straight up.
And people buy gold when they're concerned about the dollar. Just take a look at history. When the 2008 crash happened, gold prices boomed. Why? Because of quantitative easing, meaning money printing. The Federal Reserve Bank was printing money at the fastest rate we had ever seen at that time in 2008 2009. They were cutting interest rates. So people were concerned about hyperinflation. They were concerned about the dollar losing value. So what did they do? They bought gold. So between 2008 and 2012 when we were going through that big recession, stocks were getting hit but gold prices were breaking brand new record highs. But then in 2012 it became clear the hyperinflation was not happening. So what happened? The stock market started growing and gold prices started falling. Gold prices fell from 2012 to 2013 to 2014 to 2015 to 2016 all the way until 2020. It wasn't until 2020 the gold prices started breaking new record highs again. Why? What happened in 2020? Well, the pandemic hit and the money printer was turned on again. Interest rates were cut down to zero and inflation concerns were back. And when those inflation concerns came back, gold prices shot up and they've been continued to shoot up.
Now, they kind of calmed down between 2020 to 2025 when interest rates were going up and people were trying to control inflation. But when concerns about the Federal Reserve Bank came back because President Trump said that he wanted to remove Jerome Powell. He wants to remove the independence of the Federal Reserve Bank all these things created concerns about the dollar, about inflation, about what's going to happen in the economy. And so people wanted stability. They wanted safety. So what did they do? They went back to that safe haven like gold.
And now that President Trump has announced Kevin Walsh, who many people on Wall Street are saying is a more level-headed, Federal Reserve Bank chair, according to them, I'm telling you, this is what Wall Street is saying. Because of that, they feel a sense of relief, which is why they felt like, okay, we don't need gold. We need more regular investments. We can take more of the traditional approach because we're not concerned about the dollar losing value because Kevin Walsh has said time and time again that he wants to preserve the strength of the dollar.
The reason why that matters again is because President Trump has been saying something very different. President Trump has gone out publicly and said we need a weaker dollar because that is going to contribute to a growing economy of the United States. If we have a weaker dollar, foreign countries are going to buy more stuff from the United States. He has said we should not have an independent Federal Reserve Bank. We should have a Federal Reserve Bank that does what the White House wants. We should have a Federal Reserve Bank that is going to drastically cut interest rates. We should have a Federal Reserve Bank that is going to stimulate, stimulate, stimulate. All these things are bad news for the dollar, which is good news for gold.
But now, the chairman of the Federal Reserve Bank up until now, from what we understand, again this could change at any time, but from what we understand, says he wants lower interest rates, but he wants to contain inflation. He wants to tighten the balance sheet. He wants to maintain some independence of the Federal Reserve Bank. Now, obviously, we'll see what ultimately happens when it happens. But this was that trigger for causing the sell-off with gold and silver, and it also pushed down Bitcoin prices because although Bitcoin doesn't exactly move the same way as gold, people a lot of times treat Bitcoin like a a tech stock. It also created that same level of, okay, if the dollar is going to be okay, maybe we don't need such a heavy gold in our portfolio.
Does this mean you need to change what you do? No, I'm not wanting you to panic. I want you to understand what's happening. Because the mistake that a lot of people make and hear me very clearly is they hear a headline and then they change the investment portfolio. They hear a random guy on YouTube on the internet and then they change what their investment strategy is. That's not the way that you build wealth. You need to understand what's happening and then have a strategy for you. And if you have a strategy where you know what it is what you want to invest in now, you follow that strategy. And when you find good investment opportunities on sale, that's when you buy more of the things that fit your strategy.
Some of you might have gold in your strategy. Others might say, "I don't want any gold." Some of you might have real estate. Some of you might have Bitcoin. Some of you might only have stocks. Doesn't matter what your strategy is. Some people have become incredibly wealthy just with stocks. Some people have become incredibly wealthy just with real estate. Some people have become incredibly wealthy just with crypto. It's not about trying to chase what one person does or what somebody does. It's about building a strategy that builds wealth for you. And at the end of the day, what we know is that assets generally go up over the long run as long as you have good assets. But the way that you can actually build wealth is if you're not chasing investments and you're making decisions based off of what is right for you and what your strategy is.
But as a financially savvy investor, if you want to find the best returns, this is where it helps to pay attention to where the money is moving. The problem is many people get caught up in the emotions. They chase headlines. They panic when they hear the news that gold prices are falling. So they panic or silver prices are falling and they panic. Why? Because they didn't buy with a strategy. They bought because they were chasing. Buying high, selling low is a recipe for disaster. You need to know what your strategy is, especially if you're a long-term investor. And then understand what makes a buying decision, what makes a selling decision because there's going to be a lot of emotion. There's going to be even more emotion in 2026. We are just getting started. Wait till Kevin Walsh actually enters the Federal Reserve Bank. We're going to see a lot more craziness then. There's a lot of changes that are going to happen. These things create emotion for a lot of people, but they also create opportunity for the financially savvy.
That's what I want you to be is I want you to be the financially savvy who understands what's happening. That way you could be a smarter investor instead of being the person that's chasing and panic selling because the person that's chasing and panic selling is making the financially savvy investor rich because the financially savvy investor gets to now buy good investments at a discounted price.
Now I'm not saying gold is right for you or silver is right for you or that Bitcoin is right for you. I want you to understand what's happening because all these things are going to have a broader impact on the economy. Again on Monday, my video is going to go over what this is going to do for the economy at large. I just wanted to briefly touch on gold and silver and Bitcoin because this is such a hot thing right now because of how hot gold and silver has been specifically. So, I wanted to cover this right away. And Monday, I'm going to go over what this is going to mean for our economy, for the dollar at large, and the stock market because it's important for you to pay attention to these items.
Again, if you're an investor and you want to understand how do you research investments and find opportunities before they hit the headlines, I have a free investing master class that I just put together. You can watch it. I have the link for you down in the description below. And when you register, you're also going to get access to market briefs, which is my newsletter for investors with hundreds of thousands of investors every morning. You're going to get that completely for free. And if you got value out of this video, the best thank you is a referral. So, if you could please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you.