Hi,
Buckle up, Au Bullion readers! We’re witnessing a seismic shift in the economic landscape that’s setting the stage for what could be the most explosive bull run in gold and silver history. As inflation continues higher and markets teeter on the knifes edge of uncertainty, savvy investors and central banks alike are turning to the timeless allure of precious metals. In this edition, we dive into the Federal Reserve’s bold moves, expert market insights, and record-breaking highs that scream one thing: now is the time to shine with gold and silver!
Fed’s Historic Rate Cut: Stagflation Storm Brewing
Hold onto your hats – the Federal Reserve just made history with a historic rate cut, slashing interest rates even as core PCE inflation (changes in price excluding food and energy) stubbornly hovers at or above 2.9%. This hasn’t happened in over 30 years! Why the urgency? Severely weakening labor markets are flashing red warning signs: rising unemployment amid persistent high prices. We’re talking about the dreaded specter of stagflation, something we have covered extensively in past newsletters – that toxic mix of soaring inflation, job losses, and sluggish economic growth that’s crippled economies in the past.
But here’s the thrilling part: In stagflationary environments, gold and silver don’t just survive – they thrive spectacularly! History is our guide: During the 1970-80s stagflation crisis in the United States, gold skyrocketed 2,328.27% rising from $35 USD per ounce to $850, and silver exploded by 3,655.64% ripping from $1.33 USD per ounce to $49.95. These metals act as unbreakable shields against eroding purchasing power and economic turmoil. With the Fed’s hand forced by a softening jobs picture, this rate cut isn’t the soft landing markets were promised – it’s a launchpad for precious metals to soar. If you’re not considering positioning your portfolio now, you might miss the ride of a lifetime!
Gundlach’s Golden Wisdom: 25% Allocation? Not Excessive – It’s Essential!
In this powder-keg economy, even Wall Street titans are doubling down on gold. Enter Jeffrey Gundlach, the legendary CEO of DoubleLine Capital, who’s sounding the alarm with unbridled optimism for precious metals. Gundlach boldly declares that in today’s volatile climate – marked by the Fed’s rate cuts and looming stagflation – holding a 25% position in gold isn’t excessive; it’s downright necessary! This compared to the 5-10% suggested most commonly.
Think about it: with fiat currencies under siege from inflation and geopolitical jitters, gold’s role as a “barbarous relic” is more relevant than ever. Gundlach’s call echoes what we’ve been long preaching: Precious metals aren’t just a hedge; they’re a powerhouse asset class ready to deliver outsized returns in a global financial system riddled with chaos. Imagine reallocating a quarter of your portfolio to gold – not as a gamble, but as a strategic masterstroke. Silver, often called “gold on steroids,” during bull markets, could amplify those gains even further with its industrial demand surge causing an over 200-million-ounce physical deficit in 2025 alone. The excitement is palpable – this is your cue to fortify your wealth!
Gold Shatters Records: $3,700 Milestone Ignites the Bull Market Fire!
And now, the moment we’ve all been waiting for: On September 16th, 2025, gold smashed through uncharted territory, hitting a jaw-dropping intraday all-time high of $3,700 USD per ounce! While gold has since seen a $50 downward correction, the $3700 mark isn’t just a number – it’s a thunderous declaration that the precious metals revolution is here and that higher psychological barriers will continue to be pushed!
Fueled by the Fed’s rate pivot, growing global uncertainties, and insatiable demand from central banks and investors alike, gold’s ascent is nothing short of electrifying, even more so when considering this is only the beginning. Silver isn’t far behind, while it hasn’t made new all-time highs since 1980, it has outpaced gold over the past 3 years and is poised for its own parabolic surge as supply constraints tighten. This milestone isn’t a fluke; it’s the culmination of years of building momentum, proving once again why precious metals are the ultimate store of value in turbulent times.
Final Thoughts: Seize the Golden Opportunity!
Fellow goldbugs and silverbacks, the stars are aligning for an unprecedented precious metals boom. From the Fed’s historic gambit amid inflation’s grip, to Gundlach’s endorsement of bold allocations, and gold’s record-shattering highs – the message is crystal clear: Gold and silver could be your ticket to prosperity in a stagflationary world! Don’t sit on the sidelines; consult your financial advisor about diversifying into these shining stars and watch your portfolio glitter.
