What Is Going On? Stocks, Gold, Silver to the Moon as Fed Plans Rate Cut and More Inflation

Like it or not - actually, what's not to like? - stocks ripped higher again on Monday in anticipation of Wednesday's FOMC interest rate policy decision, expected, almost certainly, to be a cut of 0.25% and possibly 0.50%, with more to come.

Wall Street has been giddy over the prospect for a rate cut since the release of August non-farm payroll numbers by the BLS, which showed a gain of only 22,000 jobs for the month and revisions to prior months that demonstrated just how fragile the labor market in the U.S. has become. Of particular note was the revision to June, down by 27,000, from +14,000 to -13,000, the first negative print since 2020.

Additionally, BLS also issued its Preliminary Benchmark Revision a week ago (September 9), slashing the job estimates by a record amount of 911,000. All that did was fan the rate cut flames a little higher.

At the same time, gold has been setting price record after price record, up as high as $3,736.70 on the COMEX this morning. Silver has joined the party, trading at around $43.27 today. Silver, in one month, is up a stunning 12.32%, even outperforming gold.

While there are obvious reasons for precious metal demand, the blaring one is the continued debasing of the U.S. dollar and other major fiat currencies. The dollar index, which measures the greenback against a basket of other currencies, is at a 3 1/2-year low Tuesday morning, of 97.05 and has been sliding precipitously since Trump's inauguration, when it stood at 109.35. While it's difficult to believe that the dollar has weakened against the yen, euro, and pound, that is the reality, though all of the major currencies have taken a huge downside hit when measured against real money, gold and silver.

Stock pumpers are cheering a rate cut, which is no doubt inflationary. At the same time gold and silver stackers are cheering just the same. In relative terms, holding either asset class is a winner, though the big gains have been exclusive territory of precious metals for the past two years.

For those without either asset class, life will simply continue to suck. Higher prices from tariffs and inflation will continue to erode purchasing power, everywhere. For the bottom 80% of individuals, there is no escape.

When the rug pull commences - and it will - everything will collapse in a heap, though from the experience of the 2007-2009 sub-prime collapse, gold and silver will rebound much more quickly than stocks, some of which may not recover at all.

In the end, you got to know when to hold, know when to fold 'em...

RIP, Kenny Rogers.

At the Close, Monday, September 15, 2025:
Dow: 45,883.45, +49.23 (+0.11%)
NASDAQ: 22,348.75, +207.65 (+0.94%)
S&P 500: 6,615.28, +30.99 (+0.47%)
NYSE Composite: 21,394.59, +20.28 (+0.09%)