Why Physical Gold and Silver Still Matter in an Uncertain World
Posted on — Leave a commentFor many years, Blanchard has had the privilege of working with thoughtful, disciplined investors who take a long-term view of wealth. One of those clients is Dr. Doroghazi, a cardiologist, author, and the longtime voice behind The Physician Investor Newsletter. Dr. Doroghazi has worked with Blanchard and his portfolio manager, Stephen Davidson, as his trusted source for physical precious metals, relying on our guidance, access, and execution. That long-standing relationship reflects the disciplined, long-term approach Dr. Doroghazi brings to every aspect of investing. Dr. Doroghazi has spent decades studying markets, history, and human behavior. His book, The Physician’s Guide to Investing, earned rare praise from Warren Buffett, who said it “should be required reading at med schools.” Since 2006, his weekly newsletter has helped thousands of physicians think clearly about investing through cycles of boom, bust, and uncertainty.
We recently sat down with Dr. Doroghazi to discuss physical gold and silver, as well as what today’s markets may be signaling for investors.
A Conversation with Dr. Doroghazi
Blanchard:
You’ve written extensively about why gold and silver are rising. What do you think many investors misunderstand about these moves?
Dr. Doroghazi:
The biggest misunderstanding is thinking that gold and silver are becoming more valuable in real terms. They’re not. An ounce of gold still buys roughly what it always has over long periods of history. What’s changing is the value of paper currencies.
When people see gold up or silver up, they think something dramatic has happened to the metals themselves. What’s really happening is the purchasing power of fiat currencies is going down. That’s an important distinction, because it frames precious metals not as speculation, but as preservation.
Blanchard:
In your December newsletter, you compared gold to the Dow Jones Industrial Average. Why is that ratio so important?
Dr. Doroghazi:
It’s one of the most honest ways to compare financial assets over long periods of time. Over the last 130 years, it has averaged about 10 ounces of gold to buy the Dow.
At extremes, that ratio tells you a lot. In 1999, during the dot-com bubble, it took 45 ounces of gold to buy the Dow. In 1980, one ounce of gold bought the Dow. Today, we’re sitting around 11 ounces.
If we’re in a long-term commodities bull market, which I believe we are, that ratio is likely to fall again, and not because stocks collapse overnight, but because gold rises as confidence in paper assets erodes.
Blanchard:
You’ve been very clear that owning physical gold and silver is different from owning paper products. Why does that distinction matter right now?
Dr. Doroghazi:
Paper claims are only as good as the system behind them. ETFs, futures, and mining stocks all have their place, but they come with layers of counterparty risk.
What we’re seeing in this bull market is something different. Bullion has been outperforming the miners, which tells you the demand is for physical metal, not leverage or speculation. When people want insurance, they want the real thing.
That’s why I’ve been very direct: physical gold and silver, held in your possession or securely stored, should be part of a serious portfolio.
Blanchard:
You often describe precious metals as “insurance,” not just an investment. Can you expand on that?
Dr. Doroghazi:
Every investor should ask themselves a simple question: What happens if something breaks?
History shows that once or twice in a lifetime, something always does. Wars, inflation, currency debasement, political instability. You don’t prepare for those events after they happen.
Owning gold and silver isn’t about predicting the future. It’s about acknowledging uncertainty and building resilience into your financial life. That’s why I recommend allocating at least 10% of investable net worth to precious metals and quality collectibles. It’s not about maximizing returns; it’s about surviving what you can’t predict.
Blanchard:
You’ve also shifted your view on silver recently. What changed?
Dr. Doroghazi:
For many years, I favored gold almost exclusively because silver is bulky and harder to store in size. But markets evolve.
Silver has broken out of a base that lasted more than four decades. Industrial demand is strong, supply is constrained, and there have already been moments where futures markets signaled tightness in physical availability.
That’s why I now recommend owning some physical silver alongside gold. U.S. Silver Eagles are fine, and conversations I’ve had with Blanchard suggest that Morgan and Peace silver dollars are particularly compelling right now from a value standpoint.
Blanchard:
You also spend time discussing storage and personal security, which many investors avoid talking about. Why is that so important?
Dr. Doroghazi:
Because reality matters.
If all of your metals are stored somewhere you can’t access in an emergency, that’s a risk. But if too many people know what you have at home, that’s also a risk.
I generally suggest a mix, some in a safe deposit box, some at home, and always with discretion. Precious metals require responsibility. Ignoring that side of ownership is a mistake.
Blanchard:
Finally, how do you see this precious metals bull market ending?
Dr. Doroghazi:
There are a few paths. Governments could default. They could inflate their debts away. Or, less likely but most constructive, we could see some return to monetary discipline, possibly involving gold.
Even if the more optimistic outcomes don’t materialize, history suggests that owning real assets during periods of monetary excess is never a bad decision. Gold doesn’t need to be perfect. It just needs to do what it has always done, preserve purchasing power over time.
Blanchard Closing Note
Dr. Doroghazi’s perspective reflects why we’ve valued our relationship with him for so many years. His approach is thoughtful, disciplined, and rooted in history rather than headlines.
At Blanchard, we believe precious metals and rare coins play a meaningful role in well-constructed portfolios, not as speculation, but as long-term protection. Conversations like this one remind us that clarity, education, and experience matter, especially when markets feel anything but certain.
A complimentary offer for Blanchard clients
As a thank-you to the Blanchard community,
Dr. Doroghazi is offering a complimentary one-year subscription to The Physician Investor Newsletter for any Blanchard client who would like one.
The newsletter has been published weekly since 2006 and offers thoughtful, independent commentary on precious metals, markets, and long-term investing.
👉 To learn more about the newsletter, visit https://thephysicianinvestornewsletter.com/
If you’d like to take advantage of the free one-year subscription, simply mention it to your Blanchard portfolio manager.
Hawaii Plantation Tokens: Money of the Sugar Kingdom
Posted on — Leave a commentHawaii plantation tokens are among the most evocative and regionally distinctive forms of American exonumia. Issued during the late nineteenth and early twentieth centuries, these privately made pieces tell the story of sugar, labor, and life in the islands long before Hawaii became the fiftieth state. They were not coins in the traditional sense, yet for tens of thousands of workers, they functioned as money all the same.
Today, these tokens are studied, cataloged, and graded by leading numismatic authorities such as the Professional Coin Grading Service, and they remain highly collectible for the depth of history they carry.
The Rise of the Plantation Economy
Sugar plantations dominated Hawaii’s economy from the mid-1800s through the early 1900s. Large estates required massive labor forces, drawing workers from China, Japan, Portugal, the Philippines, and other parts of the world. Plantations were often remote and self-contained, operating almost like small towns with company-owned housing, stores, schools, and medical facilities.
Within this closed system, plantation owners needed a way to pay workers that also kept economic activity under their control. Plantation tokens emerged as a practical solution. Issued directly by plantation companies, these tokens were redeemable only at company stores or for services on the estate itself.
Unlike United States coinage, plantation tokens were not legal tender. Their value existed solely through agreement between employer and worker, which made them powerful instruments within the plantation economy.
What Are Hawaii Plantation Tokens?
Hawaii plantation tokens were typically struck in brass, copper, aluminum, or white metal. They were produced in a wide range of denominations, most often expressed in cents or dollars, though some pieces were marked only with a number or value indicator.
These tokens circulated locally and sometimes alongside U.S. coins, but their use was restricted. A worker could not take plantation tokens to a neighboring town or competing business. Their usefulness ended at the plantation gate.
This limitation is exactly what makes them historically important. Each token reflects a controlled labor system and a period when economic freedom for workers was tightly managed by employers.
Types and Shapes
One of the most fascinating aspects of Hawaii plantation tokens is their sheer variety. Unlike standardized federal coinage, plantation issues were highly individual.
Round tokens are the most common and closely resemble traditional coins. These typically include the plantation name, a denomination, and sometimes wording such as “Good For” or “Payable At.”
Holed tokens are also frequently encountered. The central hole served a practical purpose, allowing workers to string tokens together or secure them to clothing, reducing the chance of loss during long days in the fields.
Some plantations experimented with octagonal or irregular shapes. These made the tokens instantly recognizable and helped prevent confusion with official coinage.
Designs and Inscriptions
Designs on Hawaii plantation tokens are generally simple but deeply informative. Instead of national symbols or artistic allegories, these tokens emphasize function.
Most display the name of the plantation, mill, or operating company. Some include Hawaiian place names or abbreviated titles, while others rely on English-language inscriptions reflecting the business ownership of the era.
Denominations are usually straightforward, such as “5 Cents,” “10 Cents,” or “One Dollar.” A few tokens lack explicit denominations, suggesting use within a tally or credit system rather than direct wage payment.
Unlike circulating coins, plantation tokens were not meant to inspire pride or patriotism. They were tools designed for instant recognition and unquestioned acceptance.
Production and Issuers
Many Hawaii plantation tokens were struck by mainland manufacturers, particularly in California, where industrial token makers were well established. Dies were sometimes reused or modified, contributing to the wide stylistic variation seen today.
Because these tokens were privately issued, records are often incomplete or nonexistent. Some plantations produced multiple token types over time, adjusting materials or denominations as labor needs changed.
This lack of centralized documentation makes surviving examples especially valuable to historians and collectors. Each token helps reconstruct a fragment of plantation life that might otherwise be lost.
Life on the Plantation
To fully understand plantation tokens, it is essential to understand the world in which they circulated. Plantation stores sold food, clothing, tools, and household goods, all priced in company-issued currency. For many workers, wages paid in tokens created a closed economic loop tied directly to the plantation.
Some plantations allowed partial payment in U.S. coinage, particularly in later years, but others relied heavily on tokens. This system reduced cash outflow for plantation owners and ensured that economic activity remained internal.
Viewed through a modern lens, plantation tokens raise difficult questions about labor control and economic dependency. That complexity is part of what makes them such compelling historical artifacts.
Collecting Hawaii Plantation Tokens Today
Today, Hawaii plantation tokens are collected as exonumia rather than coins, yet they occupy an important place within American numismatics. Graded examples help establish authenticity, rarity, and condition, which is especially important given the crude manufacturing and heavy circulation many tokens experienced.
Collectors are drawn to these pieces not for precious metal content, but for their direct connection to Hawaii’s plantation era. Each token represents a specific place, employer, and moment in time.
Why These Tokens Matter
Hawaii plantation tokens are tangible evidence of a transitional period in Hawaiian history. They bridge the gap between the Kingdom of Hawaii, the plantation economy, and eventual United States statehood.
More than simple payment instruments, they are social documents struck in metal. Holding one is holding a piece of lived history shaped by labor, migration, and industry.
Collector FAQ: Hawaii Plantation Tokens
What are Hawaii plantation tokens?
Hawaii plantation tokens are privately issued pieces of exonumia created by sugar plantations in Hawaii during the late nineteenth and early twentieth centuries. They were used as a form of internal currency, redeemable only at plantation-owned stores or for services within the plantation community.
Are Hawaii plantation tokens considered coins?
No. Plantation tokens are not official coins or legal tender. They are classified as exonumia, meaning coin-like objects that are not issued by a government authority. Despite this, they are widely collected and studied within the numismatic community.
Why do many Hawaii plantation tokens have holes?
The central holes served a practical purpose. Workers could string the tokens together or attach them to clothing, reducing the risk of loss while working in the fields. Holed designs also helped distinguish plantation tokens from circulating U.S. coinage.
What metals were used to make plantation tokens?
Most Hawaii plantation tokens were struck in base metals such as brass, copper, aluminum, or white metal. Precious metals were not used, as the tokens were intended purely for local circulation and functional use.
How rare are Hawaii plantation tokens?
Rarity varies widely depending on the plantation, denomination, and survival rate. Some types are relatively available, while others are extremely scarce with only a handful of known examples. In many cases, exact mintage figures are unknown.
Why are plantation tokens collectible today?
Collectors value Hawaii plantation tokens for their strong historical context. Each piece represents a specific plantation, workforce, and economic system, offering insight into daily life in plantation-era Hawaii. Their regional nature and variety also add to their appeal.
Are Hawaii plantation tokens graded?
Yes. Many Hawaii plantation tokens are authenticated and graded by professional services. Grading helps confirm authenticity and provides a standardized assessment of condition, which is especially important given the crude manufacture and heavy circulation these tokens often experienced.
How should Hawaii plantation tokens be stored?
Like other numismatic items, plantation tokens should be stored in a stable environment with low humidity and minimal temperature fluctuation. Protective holders or archival-quality flips help prevent further wear or corrosion.
Do Hawaii plantation tokens have investment value?
While some plantation tokens can command strong prices due to rarity or condition, most collectors pursue them for historical and educational value rather than investment potential. Market value is influenced by scarcity, provenance, and overall collector demand.
GDP Growth Surprises with 4.3% Rate, Gold & Silver Trade At Record Highs
Posted on — Leave a commentGold and silver traded at or near record highs following news that third quarter U.S. gross domestic product (GDP) beat expectations with a 4.3% gain, marking
the strongest growth level in two years. Precious metals have posted a blistering rally in 2025, with gold up 70% and silver up 124% this year, and are still climbing despite some pullback this week.
The latest economic news, which was delayed due to the government shutdown, surprised Wall Street economists who expected growth to increase at a 3.2% rate. The strong third quarter performance also exceeded the 2.5% reading in the second quarter.
Strong consumer spending on items like healthcare and recreational vehicles helped boost GDP growth. However, the pace of business investment cooled in the third quarter to 2.8% from 7.3% in the second quarter. Other factors boosting third quarter GDP included a 5.4% jump in investment in equipment and intellectual property, which includes artificial-intelligence related spending.
Trade also boosted the 3Q GDP number by 1.59 percentage points, as exports grew and imports fell.
Jobs Market Weakening, Inflation Cooling—But Still Above Fed’s Target Rate
Despite the strong GDP number, recent data revealed the jobs market is weakening in the fourth quarter. The November unemployment rate rose to 4.6%, the highest level in more than four years. Inflation has cooled, but still remains above the Federal Reserve’s 2% target rate.
Looking into 2026, traders expect the Fed to pull the trigger on several interest rate cuts, possibly as early as January. Lower interest rates are positive for precious metals, as they lower competition from interest-bearing investments.
Fed rates cuts in 2026 are also expected to weaken the U.S. dollar, which has seen strong declines this year. A further weakening in the U.S. currency is a positive factor for gold, as there is a strong inverse correlation between the dollar and gold.
Precious Metals Closing Out 2026 with Historic Rally—And They are Still Climbing
Gold, silver and platinum have outperformed nearly all other asset classes in 2026 with massive price increases. The uptrend in precious metals is firing on all cylinders with silver hitting a new record high above $71 an ounce in late December. Gold is trading near record highs after smashing above the $4,400 level.
Investors continue to move to the safety of precious metals as geopolitical tensions are climbing with the U.S. starting an oil blockade against Venezuela. Geopolitical jitters are rising amid concerns that Venezuela’s allies including Russia and China could get involved if the conflict with the U.S. escalates. Precious metals have long-served as a safe-haven asset in times of war throughout history.
Another factor propelling precious metals higher are risks around government debt that continues to expand not just here in the U.S. but around the globe. Gold and silver are assets which are seen defending and protecting portfolios from the debasement of paper money as government debt levels climb.
Managing Risk in Your Portfolio
As we move into 2026, today is the ideal time to evaluate your portfolio and add more wealth protection to your personal situation. Even if you already own gold and silver, it may not be enough. For conservative investors, a 5 to 10% allocation to precious metals could be enough for capital preservation and a hedge against volatile markets. For moderate investors, a 10-15% allocation to precious metals can provide you a balanced approach to safety and growth. For risk-averse investors, a 15 to 20% allocation to precious metals can provide significant protection against stock market crashes, geopolitical tensions and financial crises.
With forecasts for $5,000 and even $6,000 gold, there is significant upside ahead when you act today. Increase your allocation to precious metals today. Protect and grow your wealth for tomorrow.
Gold Climbs as CPI Cools, Boosting Case for 2026 Fed Rate Cuts
Posted on — Leave a commentGold climbed toward its record high in late December, following news the Consumer Price Index slowed in November. Investors bought gold and silver after the CPI report as cooling inflation gives the Federal Reserve room to cut interest rates more aggressively in 2026 to help the faltering labor market.
Non-yielding assets like gold and silver perform well in low-interest rate environments and this latest report helps sets precious metals up for a strong start to the New Year.
The CPI averaged a 0.1% increase in October and November, according to the Bureau of Labor Statistics. The November annual CPI rate dropped to 2.7% from 3% in September. Economists were expecting a 0.3% increase in CPI inflation and a 3.1% annual reading. Because of the lengthy government shutdown this fall, the October and November CPI reports were combined.
Digging into the CPI report, several categories revealed outright deflation. For example, consumer prices in the lodging away from home, recreation, and apparel categories fell from September to November. This helps set the stage for inflation to ease further in 2026.
For investors, this is a strong signal the Fed will continue to favor boosting the jobs market with lower interest rates in 2026. The tamer CPI reading boosted odds for a Fed interest rate cut at its January meeting.
Big Picture for Precious Metals
Gold and silver are wrapping up an extraordinary year with outsized returns for precious metals investors. Gold climbed over 60% and silver is up 117% this year. Some investors may wonder “is it time to take profits” or “is the top in?” Not even close.
Looking at bull markets in gold going back to the 1970’s, the precious metal only stopped going up when the underlying drivers in the macro environment changed. We haven’t seen that. The drivers pushing precious metals are still firmly in place including a weakening U.S. dollar, strong central bank buying, geopolitical unrest around the globe, economic uncertainty and worries about the growing U.S. national debt.
On the economic front, there is growing evidence of weakness in the U.S. labor market—with over 1.1 million job layoffs announced in the first 11 months of the year. This will force the Fed to throttle back on interest rates in 2026.
A slowing economy and lower interest rates are two key ingredients that will keep the tailwinds blowing strong in the precious metals historic rally into the New Year.
Bank of America forecasts that gold will hit $5,000 an ounce in 2026. J.P. Morgan highlights a scenario that could push gold to $6,000 an ounce. Silver is in the midst of a historic uptrend with Saxo Bank calling for gains toward $70 in 2026, Citigroup sees potential for silver to climb to $72 next year.
How can you take advantage of this inflation news? Precious metals investors can lean into the strong uptrends and use this time to increase your allocations to physical precious metals before the end of the year and before the Fed cuts rates again.
Get ahead of the curve before gold and silver make their next leap higher. Get started by increasing your allocation to precious metals today. And, you can protect and grow your wealth for tomorrow.
The 1795 Flowing Hair Half Dime: America’s First Silver Coinage in Miniature
Posted on — Leave a commentIn the earliest days of the United States, coinage was not simply a matter of commerce. It was a declaration of independence. When the young nation struck the 1795 Flowing Hair Half Dime, it did so with limited resources, immense ambition, and a clear desire to prove that America could stand on its own. Small in size but immense in historical importance, this coin represents the birth of federal silver coinage and the fragile optimism of a country still defining itself.
A Nation Learning to Mint Money
Following the passage of the Coinage Act of 1792, the United States authorized its first official coinage system. The law established denominations, standards of weight and fineness, and the Philadelphia Mint as the center of production. What it did not provide was an easy path forward. Equipment was primitive, skilled engravers were scarce, and bullion supplies were inconsistent. Even so, by 1794 and 1795, the Mint began striking silver coins for circulation.
The half dime held a special role. As the smallest silver denomination authorized by law, it was intended for everyday transactions. In a time when foreign coins circulated freely and barter was still common, a federally issued silver coin signaled stability and trust. The 1795 Flowing Hair Half Dime became one of the earliest tangible expressions of that trust.
The Flowing Hair Design and Its Meaning
The design of the Flowing Hair Half Dime closely mirrors the motifs seen on other early silver coins. Liberty appears facing right, her hair long and loose, flowing freely behind her. This was not accidental. Early American artists avoided rigid or crowned imagery, choosing instead to depict Liberty as natural and unrestrained. The flowing hair symbolized freedom, youth, and a break from Old World traditions.
On the reverse, a simple wreath encircles the denomination. There is no eagle on the half dime at this time, which underscores how experimental early coin designs could be. The emphasis was not on grandeur but on function. This was a coin meant to circulate, to be handled daily by merchants, farmers, and laborers.
A Coin Born of Scarcity
One of the most fascinating aspects of the 1795 Flowing Hair Half Dime is how it was produced. Unlike later issues struck from refined domestic silver, these coins were minted using silver supplied directly by private citizens. Depositors brought silver bullion or foreign coinage to the Mint, which was then melted and struck into United States coinage. In return, depositors received newly minted coins, minus a small fee.
This process meant that production numbers were limited and inconsistent. It also meant that every half dime represented a collaborative effort between the government and its citizens. In a very real sense, Americans were helping to create their own money supply.
Circulation in an Uncertain Economy
The late 1790s were economically volatile. The United States had no central bank for much of this period, and confidence in paper money remained shaky after the inflationary experiences of the Revolutionary War. Silver coins like the half dime were trusted precisely because their value was intrinsic.
These coins circulated alongside Spanish reales, Dutch silver, and other foreign issues. Many were heavily worn through years of use, which is why well preserved examples are especially prized today. Each surviving coin carries the marks of early American commerce, passed from hand to hand in taverns, markets, and general stores.
Rarity and Survival
The 1795 Flowing Hair Half Dime had a relatively small mintage, and survival rates are low. Many examples were lost, melted, or worn beyond recognition. Those that remain offer collectors a rare opportunity to hold a piece of the nation’s earliest monetary history.
Collectors are often drawn to this coin not for its size or flash, but for its authenticity. It is a coin from a time before mass production, before steam presses, and before standardized dies. Every example shows subtle variations that reflect the handmade nature of early Mint operations.
Why the 1795 Half Dime Still Matters
Today, the 1795 Flowing Hair Half Dime stands as more than a numismatic rarity. It is a reminder of how fragile and determined the early United States truly was. This small silver coin helped establish confidence in federal coinage and laid the groundwork for everything that followed.
Holding one is like holding a chapter of American history. It connects the modern collector to a moment when the nation was young, uncertain, and hopeful, striking silver coins not just to facilitate trade, but to prove that the experiment of American independence could endure.
Fast Growing AI Sector to Boost Silver Industrial Demand Over Next Five Years
Posted on — Leave a commentNot long ago, artificial intelligence felt like science fiction—something you read about in a book or saw in a movie. Today, it’s become a part of our daily life.
From asking a voice assistant for the weather, to the way streaming platforms tailor our playlists, or how cars navigate traffic on their own, artificial intelligence is behind the scenes powering these moves.
For precious metals investors, it’s noteworthy to see that as AI technology expands throughout our economy, it is increasing industrial demand for silver—and that’s expected to grow significantly over the next five years, according to a new report by London-based Oxford Economics
Silver: An Essential Component in AI Computing
Today’s new artificial intelligence systems need materials that can handle extreme electrical loads and thermal stress far beyond conventional computing applications—and that’s where silver comes in. Silver is playing a critical role in the AI hardware revolution thanks to its unmatched electrical and thermal conductivity.
Consider silver’s physical attributes:
Electrical conductivity: Silver possesses the highest electrical conductivity of any metal at 63.01 million siemens per meter. That makes it the top choice for high-frequency applications in AI hardware.
Thermal management: AI processors generate thermal loads that far exceed conventional computing, which means advanced heat dissipation capabilities are crucial. Silver’s thermal conductivity rating of 429 W/m·K represents the highest of all metals. Silver provides heat transfer that is 7% better than even copper.
In data centers that run AI models, silver is used in high-performance chips like GPUs and TPUs for internal connections, packaging, and semiconductors, ensuring efficient data processing without overheating. These massive facilities, often consume as much power as small cities, and rely on silver-plated connectors and switchgear to distribute electricity reliably and safely at high voltages.
AI Data Centers are Driving New Industrial Silver Demand
Global electricity demand from data centers is expected to more than double by 2030, largely because of AI workloads, according to the International Energy Agency (IEA).
Looking forward, the acceleration of digitalization and the widespread adoption of AI are expected to continue gathering pace, placing growing demands on both digital and physical infrastructure. As AI applications diversify into media production, design, and simulation, demand for servers’ processing power and, by extension, data center infrastructure is expected to continue growing, the Silver Institute said.
As the world pivots toward the adoption of AI into nearly every industry, silver is poised to play a critical role as a “next generation metal.”
Is It Time to Increase Your Allocation to Silver?
Silver is in high demand as a monetary metal and for its extensive industrial uses. That demand is forecast to grow in the years ahead. With silver poised to climb in 2026 as high as $65 or even $70 an ounce according to forecasts from Bank of America and a bullish forecast from Citi—the question becomes do you own enough?
How much silver you should allocate to your portfolio depends on your risk tolerance, time horizon and your existing exposure to physical metals.
If you allocate 15% of your portfolio to precious metals, most mainstream portfolio modeling suggests that silver could comprise 40-60% of that slice with the remainder in gold. None of these are hard rules and it’s always worth exploring your personal situation with a Blanchard portfolio manager who can provide unique guidance tailored to your financial goals. But the evidence is clear. It’s prudent to treat silver as an important component of your diversified portfolio plan.
Ready to get started today? Explore silver investment options here.
Fed cuts rates to 3-year low, Gold climbs above $4,200
Posted on — Leave a commentFed Cuts Rates as Dissent Grows Inside the Central Bank
For the third time in 2025, the Federal Reserve slashed interest rates by a quarter point, bringing the benchmark rate down to 3.50-3.75%, a 3-year low. The dissents on the Fed board continues to grow as two members voted to keep rates steady and a third voted to cut rates by a half of a percentage point in a 9-3 vote on Wednesday. 
Market Reacts
Gold traded above $4,200 an ounce after the Fed’s decision and silver trades near its new all-time high at $61.31. Stocks gained modestly and Treasury yields declined on the news.
Big picture? The Fed remains between a rock and hard place. Board members made today’s decision despite big blind spots about the state of the economy in the wake of government-shutdown delayed economic reports. And the Fed board is torn between the conflicting forces of stubbornly high inflation and a weakening labor market.
Tough Choices: Jobs and Inflation
The Fed has been trying to walk a tight walk this year. Why? Because interest rate cuts can help strengthen a weakening jobs market, but rate cuts also increase inflation.
Fed Chairman Jerome Powell admitted today in typical Fed-speak understatement that the two goals of the Fed (to promote maximum employment and stable prices) are “a bit in tension.”
Future Rate Cuts Are Cloudy
Looking into the crystal ball for 2026, given the current uncertainty over the actual state of the jobs market and inflation given the delayed government data, Powell also said that he doesn’t think a rate hike is anybody’s base case for the next policy move. The Fed Board’s median projection for 2026 includes just one quarter-point rate cut.
Gold and Silver: Top Performing Assets in 2025
In the midst of the uncertainty, gold and silver stand out as two of the best-performing assets of the year. Gold has chalked up gains of over 60% and silver has nearly doubled in value with a 97% gain. Precious metals are still climbing with new record highs forecast at $5,000 in 2026 for gold and at $65 for silver.
Investors are turning to gold amid a world filled with geopolitical instability, macroeconomic uncertainty, upside risks to inflation, runaway government debt, a weakening U.S. dollar, and concerns that an unsustainable AI-bubble is fueling recent stock market gains.
In the third quarter of this year, Harvard, the world’s largest endowment fund, increased its exposure to gold, totaling over $235 million now. In the midst of rising prices, major institutional investors, hedge funds, high net worth individuals, and everyday Americans are still increasing their allocation to the safety of both gold and silver.
Navigating 2026 Headwinds: Gold and Silver Provide Safety
As we move into a New Year, take the time to explore if your current allocations match your risk tolerance levels. Indeed, today’s risk for investors may be that you are not holding enough precious metals. In a world filled with instability, gold and silver provide the certainty and security of a 5,000-year track record of building wealth. If you’d like a personalized recommendation for your portfolio, Blanchard stands ready to assist. Give us a call today.
ADP Report Reveals Job Losses, Manufacturing Contracts for Ninth Month
Posted on — Leave a commentImagine if you could be a fly on the wall at the next Federal Reserve meeting. From a new round of job losses in November to a lengthy contraction in the U.S. manufacturing sector, when the Fed meets Dec. 9-10, there will be plenty for the Fed governors to talk about.
Gold in A Holding Pattern
Since notching a fresh record high in October, gold trade has turned consolidative and sideways as the market takes a breather after its 50%+ gain this year. The long-term uptrend in gold remains intact and these latest signs of renewed economic weakness are positive for the precious metal. Dips toward the $4,000 level have been quickly bought by long-term investors and any weakness in gold is short-lived.
Fresh Look at Labor Market – Small Businesses Lead Decline
In November, private-sector ADP payrolls tumbled by 32,000, while companies with less than 50 employees shed 120,000 jobs—that’s the biggest one-month decline since May 2020. The new ADP report, coming just ahead of the December Fed meeting, shines a spotlight on weakness in the jobs market and gives more ammunition for Fed governors who are pushing for an interest rate cut before the end of the year. Policymakers have been divided on another rate cut given that inflation still remains high and above the Fed’s 2% target rate, but the odds appear to be tipping in favor of a rate cut.
Manufacturing Sector Slows Amid Increased Costs for Materials from Tariffs
Also in November, U.S. manufacturing activity slowed for the ninth consecutive month, according to the Institute for Supply Management. The ISM’s PMI report came in at 48.2, a decline from 48.7 in October. Any reading under 50 is a signal the manufacturing sector is contracting, not expanding. The November contraction was widespread and included the apparel, textiles, paper products, chemicals and transportation equipment industries. Manufacturers point to tariffs as the main factor causing the contraction. In many cases, it now more expensive for U.S. producers to source materials from abroad that are needed in their manufacturing processes. The ISM survey also found that manufacturers were holding back on hiring as they tried to manage the higher production input costs and slowdown in orders.
What It Means for Gold
Gold prices jumped following the news of the ADP jobs losses as it boosted expectations the Fed will cut rates at its December meeting. Lower rates are positive for non-interest bearing precious metals. Meanwhile, weakness in the manufacturing sector supports demand for gold as a safe-haven asset. Spot gold is trading just above $4,200 an ounce with bullish momentum growing. Prices are likely to remain range-bound into the Fed meeting, and a breakout above $4,373.20 would signal gold is extending into a new bullish phase, with a target at $5,000 in 2026.
Quiet markets like we are seeing today are ideal for orderly accumulation and fractional gold like 1/10 ounce American Gold Eagles, priced at $499.80 (market prices fluctuate) offer the same level of future upside as a 1 ounce gold coin. Act today with an increased allocation to physical gold and watch your wealth grow in all the tomorrows that follow.
The Story Behind the 1936-S Bay Bridge Silver Half Dollar
Posted on — Leave a commentThe 1936-S Bay Bridge Silver Half Dollar is one of the most beloved classic commemoratives in U.S. coinage. With its bold design, regional pride, and limited production, it captures a moment in California
history when the West was rising in national importance. More than just a collectible coin, it is a silver time capsule that celebrates one of the greatest engineering achievements of its age: the San Francisco–Oakland Bay Bridge. This is the story of how it came to be, why it became such a standout in the commemorative series, and what continues to draw collectors to it today.
Honoring a Modern Marvel
The early to mid-1930s saw a wave of commemorative coin programs, many tied to local celebrations and anniversaries. The completion of the Bay Bridge in 1936 was a perfect candidate for a coin issue. It had taken more than three years of round-the-clock labor to complete the massive structure connecting San Francisco and Oakland. At the time of its opening, it was one of the longest steel bridges in the world and a visible symbol of American optimism during the Great Depression.
To mark this achievement, Congress authorized a commemorative half dollar to be struck at the San Francisco Mint. The coins would be sold to the public at a small premium, with proceeds supporting civic celebrations around the new bridge. The result was the 1936-S Bay Bridge Silver Half Dollar, a coin as bold and striking as the bridge itself.
A Design That Captured the Spirit of California
One reason the Bay Bridge Half Dollar remains so popular is its stunning artwork. The designer, Jacques Schnier, was a San Francisco sculptor known for his modern style. He delivered a design that felt fresh and forward-leaning, breaking from the more classical motifs that had dominated commemorative coinage.
The obverse features a powerful California grizzly bear, standing tall with a quiet sense of strength. This was not simply a regional mascot. The bear symbolized resilience, independence, and the rugged identity of California. Collectors have long admired the depth, texture, and visual weight Schnier brought to the image.
The reverse is a beautifully balanced view of the Bay Bridge stretching across the bay, with Yerba Buena Island and the San Francisco skyline rising in the background. The architectural detail is crisp, and the scene conveys the blend of artistry and engineering that defined the era. Few commemorative coins of the 1930s feel as modern or as cleanly executed as this one.
Mintage, Distribution, and Collector Appeal
The 1936-S Bay Bridge Half Dollar was struck exclusively at the San Francisco Mint, with a mintage of 100,000 coins for distribution. Another 2,000 pieces were produced for assay purposes. While most sold quickly through local committees and distributors, a portion went unsold and were returned to the Mint for melting.
This combination of limited mintage, strong regional interest, and exceptional design gave the coin a strong foothold in the commemorative market. Unlike some other 1930s issues that struggled to find an audience, the Bay Bridge Half Dollar maintained steady demand. Today, collectors appreciate its bright luster, the bold bear motif, and the artistry of its engraving. High-grade examples, especially those with strong mint luster and clean surfaces, remain particularly desirable.
A Legacy That Endures
The Bay Bridge Silver Half Dollar stands as a testament to a defining moment in California history. It honors a landmark that reshaped the region’s transportation and economy. It showcases one of the most memorable bear designs in American numismatics. And it represents the spirit of innovation that marked the 1930s United States, even during challenging economic times.
For modern collectors, the 1936-S Bay Bridge Half Dollar offers the chance to hold a piece of that history in hand. It is a classic commemorative that continues to shine, bridging the past with the present and reminding us of the bold ambitions that helped shape the American West.
Retail Sales, ADP Report, Confidence Survey Reveals Economy Remains Sluggish
Posted on — Leave a commentGold climbed and stocks slumped as private ADP jobs report revealed accelerating job losses, a confidence survey showed a downturn in sentiment and new retail sales data disappointed. Gold hit a 10-day high following the news and stocks turned lower.
Digging Deeper into the Economic Outlook
Payroll processing firm ADP reported that job losses averaged 13,500 per week for the four weeks ending November 8, which pushed stocks lower as “risk-off” trading sentiment increased. The ADP report reveals bigger questions about how weak the U.S. labor market truly is.
Wall Street economists remain in catch up mode following the government shutdown on Oct. 1 that lasted to mid-November. Government statistics agencies are still compiling reports from several months ago, leaving investors and economists with an incomplete picture on the economy today.
Consumer Spending Grows, But Less Than Expected
Retail sales rose by 0.2% in September, the Commerce Department said. That fell short of Wall Street’s forecasts for a 0.3% rise. Americans pulled back on purchases in a number of categories that were affected by tariffs, including cars, electronics and clothing.
Also, the Conference Board just released its latest consumer confidence survey for November, which fell to 88.7 from 95.5 in October, again below consensus expectations for a 93.2 reading.
Another shutdown delayed report revealed that the producer price index showed goods and services moved higher in September. PPI rose 0.3% in September, following a 0.1% increase in August.
Putting It All Together
All in all, the new economic data reveals that heading into the holiday season, Americans see a job market losing steam, still-rising inflation, and falling consumer confidence, which is leading some people to rein in their spending.
Gold Is Rangebound in Pre-Holiday Trade
Since touching a record high above $4,300 an ounce in October, gold trade has turned consolidative and sideways. For the past two months, gold has traded in range between roughly $4,200 on the upside and $4,020/$4,000 on the downside. Dips have been short-lived as buyers entered the market to accumulate gold under the $4,020 level.
The long-term trend for gold points higher and the major fundamental drivers for uptrend remain intact. Central banks remain large buyers of physical gold, investors and funds are diversifying into precious metals to hedge against rising government debt levels, falling U.S. dollar values, still-high inflation and to protect portfolios against stock market volatility. Major Wall Street firms project a fresh climb to a new record high at $5,000 in 2026.
The Importance of Managing Risk In Your Portfolio
Given today’s heightened macroeconomic uncertainty, it’s time to consider an increase in allocation to physical gold and silver as a core portfolio risk-management tool. A higher strategic allocation to precious metals can help you preserve purchasing power, reduce portfolio volatility, and act as a vehicle to grow your wealth even when assets like stocks and bonds fall.
Beyond wealth preservation, the investment case for gold and silver extends to proven portfolio diversification benefits. Physical metals consistently deliver low correlation to major paper asset classes such as stocks and bonds. During market drawdowns triggered by geopolitical disruptions or stock market declines, gold in particular has historically demonstrated positive performance. Silver, with its hybrid industrial and monetary characteristics, offers both a defensive hedge and exposure to long-term manufacturing trends in renewable energy and electronics.
How to Safely Add Precious Metals to Your Portfolio
Consider increasing your allocation to gold and silver with physical bars and coins held with reputable custodians or in direct personal custody, rather than unbacked or highly leveraged paper substitutes.
How large should your precious metals allocation be? We can help tailor a position size appropriate for your personalized liquidity needs, risk tolerance, and existing exposure to real assets. If you have questions on how to best position your portfolio for safety and growth, please call Blanchard today. We stand ready to assist you in these uncertain times.
