(Money Metals News Service) In this episode of the Money Metals Midweek Memo, host Mike Maharrey opens with an unexpected comparison between the experience of playing goalie in a chaotic amateur hockey game and navigating today’s financial markets.
Substituting for a team of less experienced players, Maharrey found himself overwhelmed by disorganized defense and unpredictable gameplay. The key to managing that chaos, he explains, was staying calm and relying on fundamentals.
He relates this to the current investing environment, where headlines change by the hour and markets swing wildly in response. Like tracking a puck in disorder, investors must tune out the noise and focus on what doesn’t change—underlying economic realities and long-term fundamentals.
This advice frames the episode’s central theme: the importance of clarity and discipline amid economic volatility.
Volatility and the Dollar’s Decline
Maharrey highlights the rapid fluctuations in gold prices, with $25 to $50 swings now a daily occurrence. On the day of recording, gold was down to around $3,300 per ounce, after trading near $3,350 the previous day.
These price movements, he notes, are driven by shifting policy news—especially around tariffs—and will likely continue.
But rather than reacting to every market twitch, investors should pay attention to foundational issues that aren’t going away: debt bubbles, structural economic distortions from years of easy money, and a Federal Reserve caught in a policy bind.
He explains that the Fed is stuck between the need to keep interest rates low to support debt-laden sectors and the need to keep them high to contain inflation.
In the midst of this uncertainty, one thing remains constant: the dollar continues to lose purchasing power. Maharrey reminds listeners that even when inflation is “under control,” the Federal Reserve targets a 2 percent annual increase in the price level.
That means a 10 percent loss in dollar value every five years—an erosion that continues indefinitely.
Gold Hits a New Inflation-Adjusted Record
Amid the chaos, gold reached a historic milestone.
On April 22, it hit an intraday high of $3,500 per ounce, surpassing its previous inflation-adjusted record of $3,493 set on January 21, 1980.
That earlier high of $850 per ounce, when adjusted for inflation, had long stood as the benchmark.
This new record marks the growing realization that the dollar’s purchasing power has significantly deteriorated over time.
Maharrey addresses a common critique—that gold isn’t an effective inflation hedge because it took so long to surpass the 1980 high. But that peak, he explains, was an anomaly.
At the time, Fed Chairman Paul Volcker aggressively raised interest rates to as high as 20 percent to combat inflation, crushing gold’s rally.
In contrast, today’s central bankers have held rates around 5.5 percent at most, showing far less resolve. Viewed over longer timelines, gold has more than kept up with inflation.
Long-Term Performance and Inflation Hedging
Looking at gold’s performance since 2000, the story becomes clearer. An ounce of gold in 2000 cost around $285.
As of April 2025, that same ounce is worth approximately $3,300—a gain of over 847 percent. During that same span, consumer prices have risen just 81 percent. Gold has far outpaced inflation, proving itself as a long-term hedge.
Maharrey warns against using arbitrary time frames to judge gold’s performance. Critics often point to the 2011 high and note the lower prices that followed for several years. But those who held on have seen strong gains.
The key, he says, is to view gold through a long-term lens, not through the erratic headlines and short-term dips. His personal investment philosophy centers on wealth preservation, especially in a monetary environment defined by inflation and uncertainty.
Understanding Gold Pricing: Spot, Futures, and Fix
Maharrey devotes a segment to explaining how gold is priced. He outlines three key price points that investors should understand.
Spot Price
The first is the spot price, which is the real-time market price for immediate delivery. It is not set by any single entity but emerges from aggregated global trades across exchanges and over-the-counter transactions. This price forms the foundation for retail pricing and is the most commonly quoted figure on sites like MoneyMetals.com.
Futures Price
The second price is the futures price, which reflects the expected value of gold at a future date. Traded primarily on the COMEX division of the Chicago Mercantile Exchange, futures contracts are based on 100-ounce lots. These prices help gauge market sentiment. For example, if the spot price is $3,300 and the futures price is $3,400, the market expects an upward move. Conversely, lower futures prices suggest bearish expectations.
London Fix
The third is the London gold price, often referred to as the London fix. This benchmark is set twice daily by the London Bullion Market Association (LBMA) through an auction process involving major banks like JPMorgan, HSBC, and UBS. Participants submit buy and sell orders until a price equilibrium is reached within a narrow 10,000-ounce tolerance. While less relevant for retail transactions, the London fix is widely used in contracts and by central banks.
Why Products Cost More Than Spot Price
Maharrey addresses a frequent point of confusion for new buyers: why gold products are priced above the spot price.
The difference is called the premium, and it reflects factors such as minting costs, supply and demand, product type, and dealer overhead.
Standard bullion coins may carry modest premiums, while collectible or novelty items—such as silver bullets or breakable gold bars—can cost significantly more.
These higher premiums are justified by production complexity and consumer interest. Maharrey emphasizes that value is subjective. Some buyers are happy to pay more for unique or symbolic items. He encourages customers to align their purchases with their goals—whether that’s maximizing weight for investment or acquiring aesthetically unique pieces.
The Bull Market in Gold and Silver
As the episode concludes, Maharrey reminds listeners that we are in the midst of a broad precious metals bull market. This doesn’t mean prices only move up—short-term pullbacks and corrections are part of any rally. But the long-term trend is upward, driven by economic fundamentals that show no signs of reversing.
He highlights silver as particularly undervalued relative to gold. Historically, silver tends to lag during the early phases of a bull market and then catch up with dramatic gains. Maharrey believes that dynamic is likely to play out again, making silver a compelling opportunity for investors who act early.
Call to Action
Maharrey encourages listeners to get involved before the rally matures. He urges them not to wait on the sidelines, but to act—whether by calling 1-800-800-1865 to speak with a Money Metals specialist, chatting online, or browsing the product catalog at MoneyMetals.com. Whether you’re looking for the lowest premium bullion or a unique collector’s piece, there are options available for every strategy.
As always, Maharrey closes by emphasizing the importance of tuning out media hysteria and focusing on the economic fundamentals. He invites listeners to visit MoneyMetals.com/news for the latest market coverage, subscribe to the podcast, and prepare for his upcoming interview with respected financial author Jim Grant.
