Gold, Silver Bid as US Concerns Grow

Gold and Silver prices are catching a bid as multiple developments converge to highlight systemic stress in markets and governance.

Gold is up $45 as we write this, and Silver, initially ignored at first, is starting to catch up rallying 35 cents at the time of this writing. This, while the dollar makes multi year lows overnight.

We believe the markets are sniffing out what we advocated in yesterday’s must-read post covering the Trump administration’s next path— to spend our way out ofthsi mess. The markets are voting it is a bad idea.

Fed Repo Use Surges Sharply

Use of the Federal Reserve’s reverse repo facility has spiked in recent days, driven by declining reserve balances, heightened demand for Treasury collateral due to net issuance, and quarter-end liquidity pressures. Analysts attribute the move to a mix of balance sheet constraints and temporary dislocations, but the scale of the surge is drawing renewed attention to the fragility of short-term funding markets.

Musk vs. Trump: The Debt Fight Escalates

Elon Musk has reignited his criticism of Trump’s so-called “Big Beautiful Bill,” a nearly 1,000-page spending package. Musk called it “insane” and “destructive,” warning it will add trillions in debt and kill future-facing industries. He’s floated the idea of unseating supportive lawmakers and even forming an “America Party” if the bill passes.

Trump responded by pointing to Musk’s historic reliance on federal subsidies and suggested his proposed DOGE oversight agency may review Musk’s companies.

A Broader Backdrop of Risk

The fiscal drama and liquidity stress arrive just as several key macro events loom: the passage of the debt bill, the upcoming BRICS Summit, the planned Basel III implementation, and the expiration of a key tariff ceasefire. Together, they form a potent mix of monetary, trade, and policy uncertainty.

While geopolitical tensions may have cooled temporarily, the renewed focus on domestic fiscal imbalances and systemic strain has revived interest in precious metals. This time, silver is riding alongside gold.

Financial repression is coming: