As confidence in U.S. debt weakens and deficits balloon, investors are re-evaluating their long-term financial strategies. Federal Reserve Governor Christopher Waller issued a sobering message this week: the United States’ current fiscal trajectory is “not sustainable.” Amid rising yields, faltering Treasury demand, and a market leaning toward risk-off sentiment, precious metals like gold and silver are once again emerging as critical safe-haven assets.

In an exclusive interview with FOX Business, Waller pointed directly to the proposed Republican tax cut package as a catalyst for market anxiety. Financial markets, he explained, had hoped for a more aggressive effort to rein in spending. Instead, the prospect of even larger deficits has sparked a selloff in government bonds and pushed investors toward assets with intrinsic, long-term value—like physical gold and investment-grade silver.

“There’s going to be a lot of issuance of Treasurys,” said Waller, “and in order for them to buy these things, [investors] want it at a lower price, and therefore, a higher yield.”

Why the Treasury Selloff Matters

This week’s $16 billion auction of 20-year Treasury bonds flopped, signaling waning demand for U.S. government debt. That’s a problem. Weak auctions increase borrowing costs for the government—raising concerns about America’s long-term fiscal solvency.

Historically, when confidence in fiat currency or sovereign debt falters, investors flock to gold. The metal is not subject to political whims, monetary policy missteps, or overleveraged fiscal packages. It has retained purchasing power for thousands of years, and in periods of monetary instability, it becomes the go-to hedge.

Rising Yields, Rising Risk

When bond yields rise, bond prices fall—and equity markets often follow suit. The knock-on effect is a more volatile financial environment. Waller noted that risk sentiment is shifting not just away from Treasury securities but from U.S. assets across the board, citing concerns about inflation, the dollar, and America’s debt load.

“There does seem to be a risk-off on American assets across the board,” he said. “Not just government debt, but everything.”

For smart investors, this shift in sentiment is a signal. While others scramble for yield and chase equity volatility, seasoned wealth managers and retirees are reallocating to tangible assets like gold and silver.

Fiscal Indiscipline and Inflation Concerns

The Fed governor also touched on the lingering threat of inflation, particularly with the possible reinstatement of tariffs under a second Trump administration. While he emphasized that moderate tariffs are manageable, price hikes could still ripple through the economy, putting upward pressure on the inflation rate and potentially forcing the Fed to act more aggressively on rates.

Waller acknowledged that a 10% tariff wouldn’t cause persistent inflation, but it would result in a “one-time price increase.” That distinction matters. It reaffirms why commodities with real-world value—like precious metals—act as a buffer. They’re not just inflation hedges; they’re stores of wealth in times of policy uncertainty.

The Growing Case for Gold and Silver in Retirement Portfolios

As the U.S. navigates a confluence of structural deficit problems, weak Treasury demand, and shifting inflation expectations, the case for diversifying retirement portfolios with precious metals is growing stronger by the day.

Gold and silver offer:

• Protection against currency devaluation

• A hedge against inflation and geopolitical risk

• A long-term store of value immune to political cycles

• Portfolio diversification not correlated to equities or bonds

For retirees and long-term investors especially, these advantages are critical. The volatility in traditional asset classes is no longer an abstract possibility—it’s becoming the new norm. Gold IRAs and physical bullion allocations are increasingly seen as not just conservative strategies, but smart ones.

The Bottom Line

America’s fiscal path is uncertain. Bond markets are flashing warning signs. Inflation remains a latent threat. In this environment, investors need more than yield—they need stability, safety, and sovereignty over their wealth.

That’s where precious metals come in.

If you’re looking to protect your retirement savings, reduce portfolio risk, and hedge against rising economic uncertainty, now may be the ideal time to consider gold and silver.

Contact a specialist at GoldenCrest Metals today to learn how you can diversify your portfolio with precious metals. From Gold IRAs to physical bullion, our team is here to help you build lasting financial security—backed by assets that have stood the test of time.

Learn more at www.goldencrestmetals.com

Source: FOX Business – Federal Reserve Governor Warns U.S. Deficit “Not Sustainable”