Gold and Silver Pull Back — Smart Money Buys When Others Wait 
Every investor hedging against inflation eventually asks the same question: What if I’m wrong?
That’s exactly what John — an investor from Australia — asked Mike Maloney live at the New Orleans Investment Conference.
His concern? Whether it’s smart to hold a 5–10% position in long-term U.S. government bonds as insurance against a deflationary shock — the kind we saw after the Great Depression or during 2008.
Mike’s answer was blunt, thoughtful, and deeply rooted in monetary history.
Bonds Aren’t the “Safe Haven” They Used to Be
Mike didn’t mince words:
“I see bonds as something that are potentially dangerous.”
Why? Because the fundamentals have changed. The U.S. has already had its credit rating downgraded — again — and the government’s runaway spending shows no sign of slowing.
The result: more debt, more currency creation, and a bond market that’s becoming less and less credible as a “hedge.”
For investors clinging to bonds for safety, Mike’s warning is clear — in an era of fiscal recklessness, bonds might not protect you. They might be the very thing that hurts you.
Gold and Silver: The Real Floors in the System
In contrast, Mike points to the growing support under precious metals:
“Central banks, especially in the East, are putting a floor under gold and silver.”
As global reserves shift away from the U.S. dollar, central banks have quietly become some of the biggest gold buyers on the planet. Their actions speak volumes — while the West trades paper promises, the East is accumulating real assets.
Gold and silver aren’t speculative plays anymore; they’re the insurance policy of nations.
Every Currency Is Falling — Just at Different Speeds
When John raised a follow-up question about hedging with U.S. bonds as an international investor, Mike offered one of his most powerful analogies:
“All national fiat currencies are like skydivers — they’ve all jumped out of the plane and are falling at different rates. Gold is in the plane.”
Whether it’s the U.S. dollar, the euro, or the Australian dollar, all fiat currencies lose value over time. Some fall faster, others slower, but the direction never changes.
Gold, by contrast, remains outside that system. It doesn’t rely on anyone’s promise to pay. It is the standard by which falling currencies are measured.
Why the Next Crisis Could Be Worse Than 2008
Mike sees warning signs everywhere — tariffs, trade wars, and slowing global growth are already interrupting supply chains and new investment.
He shared a personal story: even his own farming business has been delayed by tariffs on imported equipment from Europe. Multiply that across industries, and the effect becomes clear — fewer jobs, less output, and declining demand for base metals like copper and aluminum.
That’s why he believes the next downturn could be “worse than 2008.”
As industrial commodities fall, gold and silver could rise sharply in contrast — not just as hedges, but as beneficiaries of a global slowdown.
The Endgame: Infinite Currencies, Finite Value
As Mike put it, “The U.S. dollar is nothing but a number supply — and the supply is infinite.”
Central banks have trapped themselves. They can’t stop cutting rates or expanding balance sheets without collapsing the system they built. And as they “type” more currency into existence, the math guarantees long-term debasement.
“It’s impossible for a debt-based currency to store value. Therefore, it is not money. The only things that have proven to be money for 2,500 years are gold and silver.”
History agrees. From ancient civilizations to modern crises, the same pattern repeats: when currencies fail, precious metals endure.
See the complete exchange from the New Orleans Investment Conference — and why Mike believes the next decade could redefine what “safe haven” really means.
Watch the full conversation with Mike and John
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People Also Ask
Should I hedge my gold position with bonds?
Mike Maloney says long-term government bonds may not be the “safe haven” investors assume. With rising debt and endless money creation, he views bonds as increasingly risky compared to gold and silver. Watch his full discussion from the New Orleans Investment Conference on GoldSilver’s YouTube Channel.
Why does Mike Maloney believe gold and silver are safer than bonds?
Maloney points to global central banks — especially in the East — as putting a floor under gold and silver prices, while governments keep devaluing their currencies. He argues that metals hold real value outside the fiat system.
What does it mean when people say “all currencies are falling”?
It means that every national fiat currency — whether the dollar, euro, or yen — steadily loses purchasing power over time. Think of them like skydivers falling at different speeds, while gold and silver stay in the plane. Precious metals hold their value as paper currencies decline.
Why do investors turn to gold and silver during economic slowdowns?
Precious metals often rise when growth slows or financial systems look unstable. Unlike stocks or bonds, gold and silver carry no credit risk and tend to attract demand when confidence in paper assets weakens.
Can fiat currencies hold their value long-term?
Historically, no. Debt-based currencies lose purchasing power as more units are created, reducing what each one can buy. Gold and silver have served as reliable stores of value for thousands of years because their supply is limited and universally recognized.
