The Truth About the “Debasement Trade” — Why I’m Cautious on Gold and Silver

Gold is up over 50%, silver around 70%. Everyone’s saying to buy because with a weak dollar, it’s a sure thing. You see it on YouTube, in the headlines, and even your neighbor is talking about buying gold and silver.

They’re calling it the debasement trade—the idea that the dollar is dying, inflation is back, and if you don’t buy gold and silver now, you’ll be left holding worthless paper.

But here’s the thing most people won’t tell you: when everyone’s chasing the same trade idea, that’s when I get cautious.

Experience and Perspective

I’ve been following gold and silver for a long time. I’ve made money trading them, and I’ve lost money too. For well over a year, I’ve made videos about them long before they were popular, and I’ve seen what happens when hype replaces sound judgment.

So here’s what I’m doing right now—not hype, not fearmongering—just the honest truth from someone who’s lived through bubbles, breakouts, and busts.

If you’re thinking about buying gold or silver today, you need to hear this.

What Is the Debasement Trade?

It’s the idea that when a country’s money is being quietly destroyed through unchecked money printing, reckless spending, and unsustainable debt, smart investors move their wealth into real assets—things that can’t be printed, inflated away, or devalued by the next stimulus bill.

Let’s call it what it is: debasement is just a polite word for stealing your purchasing power.

You do everything right—you save, you budget, you work hard—but every year your money buys you less. Groceries, rent, insurance, taxes, and utilities are all higher. But your money stays the same or even shrinks.

This isn’t just inflation. This is a structural problem.

And gold and silver? They’re the oldest insurance policies in the world. That’s why central banks are buying by the ton and countries like China are reducing U.S. Treasury holdings while loading up on gold.

This debasement trade has been quietly gaining momentum.

What Gold’s Rise Really Means

When gold breaks out to new highs, that’s not a sign everything’s fine—it’s often a warning that something’s breaking politically, economically, or socially.

Gold doesn’t rise when the world is stable. It does so when the world is in trouble.

So yes, the debasement trade is a bet against the dollar—but when everyone starts chasing the same trade idea, that’s when it stops working the way people think it will.

Why I’m Taking the Contrarian Approach

I believe in gold and silver. I’ve followed these markets for years, long before they were trending on YouTube. Not because I’m a “gold bug,” but because I’ve studied history and know what happens when systems stop working.

But here’s the truth: right now, everyone’s talking about gold and silver. Every financial influencer is suddenly an expert on the debasement trade. Predictions of $5,000 gold and $100 silver—it’s everywhere.

And that’s when I start getting cautious.

I’ve lived through dot-com, 2008, and crypto booms. The pattern’s always the same: first come the early believers, then the institutions, then the masses—and finally, the exit door.

Overbought Markets and Smart Moves

Right now, gold and silver are breaking out. It’s exciting, and it feels like you’re missing out if you’re not in it. But nothing goes up in a straight line.

Charts show gold and silver are stretched—overbought signals, high relative strength, and prices above key moving averages. Analysts like Jordan Roy-Byrne, Gareth Soloway, and Christopher Aaron are all calling for a pullback—not a crash, just a healthy pause.

I agree. I’ve taken some profits, and I’m not adding new positions right now. Not because I’ve lost faith, but because I’m thinking like smart money does.

Precious metal bull markets can be brutal—big upside, but also nasty pullbacks. Don’t confuse short-term pain with long-term failure. Corrections are normal.

To me, gold isn’t about getting rich—it’s about protecting your purchasing power. This market will probably give you another chance, maybe not at the same prices, but at better setups.

The Real Risks: Scams, Hype, and Emotional Buying

When gold and silver hit the headlines, the scammers aren’t far behind.

Here are three common traps I see right now:

1. Collectible Coin Hype

Fancy graded coins, limited editions, shiny labels—all sound exciting, but you’re often overpaying far above melt value. When it’s time to sell, that “story” doesn’t matter. You’ll likely only get melt value.

2. Counterfeits

Fakes coming out of China are next level—fake packaging, serials, and even certificates. You need a Sigma Metalytics tester to be sure. Even experienced buyers get fooled. If you’re not buying from a trusted source, you’re gambling.

3. In-Person Deals

Craigslist, Facebook Marketplace, OfferUp—they may look like good deals, but the risks are real. You could end up with fakes or even get robbed.

If you’re walking around wearing flashy gold jewelry in big cities, you’re a target. Thieves know what to look for. It’s just not worth it.

The bottom line: be careful, not careless. When gold and silver are soaring, scams always follow.

Is It Too Late to Buy Gold and Silver?

Everyone’s asking, “Is it too late? ”
My honest answer: maybe.

If you’re chasing short-term gains or following the crowd, yes—it might be too late.

But if you’re thinking long-term, trying to protect your purchasing power, hedge against currency risk, or diversify outside the system—then no, it’s not too late.

Gold and silver aren’t about timing the top. They’re about owning something real in a system built on illusion and trust.

Prices have run up, and a pullback is likely. So don’t FOMO in—be patient and pick your spots. Make sure you’re buying for the right reasons.

Final Thoughts

Our mission here is to empower you with straightforward tax tips, helpful business information, and alternative insights you won’t hear from the mainstream.

If you have thoughts about this, you can share them in the comments section of the YouTube video. Thanks for reading and see you there!