Trusted Partner Presentation Why Are Famous Billionaires Buying This Gold Miner? Gold legends-Eric Sprott, Goldcorp founder Rob McEwen, and Kinross founder Bob Buchan-each own a sizable stake in a small Nevada gold miner. Why? Because it's already producing gold, has major infrastructure in place, and sits in one of the world's top gold mining regions. When billionaires get in early, there's a reason. See why these gold giants are backing a company still trading under $1

The Federal Reserve's September 17, 2025 decision to cut interest rates by 25 basis points has propelled gold to record highs above $3,707 per ounce, while prominent economists and analysts warn of an impending confidence crisis in US government institutions. Gold mining stocks have nearly doubled year-to-date, dramatically outperforming the metal itself as profit margins reach historic levels of $1,861 per ounce. Expert consensus now recommends portfolio allocations of 5-15% to gold as the Fed begins what markets expect to be an extended easing cycle amid persistent inflation concerns and weakening economic indicators.

The convergence of monetary policy shifts, institutional warnings, and technical breakouts has created what analysts describe as a generational opportunity in precious metals. Former IMF deputy director Desmond Lachman warned in March that the United States now resembles a "troubled emerging-market economy," while Peter Schiff predicted the next crisis won't mirror 2008 but will instead manifest as a catastrophic loss of confidence in US government creditworthiness. With the dollar down over 10% in 2025 and foreign investors increasingly dumping Treasury securities, gold's appeal as both an inflation hedge and crisis insurance has never been stronger.

Fed Delivers First Cut Amid Labor Market Deterioration

The Federal Open Market Committee's decision to lower rates to 4.00%-4.25% marks a pivotal shift from the prolonged tightening cycle that defined 2023-2024. Fed Chair Jerome Powell characterized the move as a "risk-management cut" responding to August's disappointing employment report showing only 22,000 new jobs created and unemployment rising to 4.3%. Despite inflation remaining elevated at 2.9%, the central bank prioritized employment concerns, with Powell acknowledging that "the risks to the other mandate have grown" sufficiently to warrant action.

Gold's immediate reaction was explosive, surging to an all-time high of $3,707.57 within minutes of the announcement before profit-taking pulled prices back to the current $3,655 level. Technical analysts identify critical support at $3,550, with a break below potentially signaling trend exhaustion after a 39% year-to-date rally. For intraday traders on September 19, key entry points cluster around $3,663-$3,665 for buyers, with resistance at $3,684-$3,686 offering selling opportunities. Bank of America projects gold will reach $4,000 by 2026, noting the metal has "never declined when the Fed eases with inflation above the 2% target."

The Fed's forward guidance suggests two additional quarter-point cuts in 2025, bringing the terminal rate to approximately 3.6% by year-end. This dovish trajectory has reinforced gold's structural bull case, particularly as real interest rates are expected to remain negative through 2026. Silver has also benefited dramatically, hitting 14-year highs above $42 per ounce and gaining 40% year-to-date.

Ex-IMF Officials Sound Alarm on US Economic Fragility

Desmond Lachman, former deputy director of the IMF's policy development department, delivered a stark assessment of American economic health in his March 2025 Project Syndicate op-ed. "The United States is showing many of the warning signs" of a troubled emerging market, he wrote, citing excessive tariffs, a debt-to-GDP ratio approaching 100%, oligarchic influence from billionaires like Elon Musk, and declining rule of law. His warning about "inevitable consequences" proved prescient: "Economic damage on the scale that Trump is inflicting will invariably cast a long, dark shadow—and there will be no IMF bailout or structural adjustment plan that can put things back on track."

Current IMF Chief Economist Pierre-Olivier Gourinchas has raised the US recession probability from 25% to 40%, slashing growth forecasts to 1.8% for 2025. The April World Economic Outlook report highlighted policy uncertainty as a primary risk factor, with Gourinchas warning that further escalation in tariffs and trade tensions could trigger a deeper downturn. These institutional warnings carry particular weight given the IMF's historical role in identifying systemic financial risks before they fully materialize.

Peter Schiff's September 17 Kitco News interview crystallized market fears about a looming confidence crisis. "This is going to be a financial crisis much worse than 2008," Schiff predicted, emphasizing that unlike the global contagion of the previous crisis, this will be "a US crisis" that paradoxically liberates the rest of the world "from the burden of supporting the US economy." His price target for gold of $20,000 per ounce reflects expectations of currency debasement, with the dollar already down 10.8% in 2025 and showing "no real bid" even during Middle East tensions.

Portfolio Allocation Consensus Emerges at Historic Levels

Major investment banks and wealth managers have coalesced around significantly higher gold allocations than historical norms. JPMorgan Chase recommends a 15% allocation, matching central bank reserve patterns and citing a $4,000 price target within twelve months. This represents a dramatic shift from traditional 2-5% allocations, reflecting both inflation hedging needs and geopolitical risk management. Goldman Sachs calculates that each 0.25% Fed rate cut translates to a 3-5% gold rally, potentially pushing prices to $4,500 under extreme scenarios.

The World Gold Council reports that gold has averaged 6% gains in the first six months of historical rate-cutting cycles, though current conditions suggest potential for outperformance. Central bank demand remains robust at 650-700 tonnes annually, providing fundamental price support independent of retail or institutional flows. Ray Dalio's Bridgewater Associates advocates an aggressive 15% allocation split between gold and Bitcoin, warning the world stands "on the verge of an economic heart attack."

For implementation, experts recommend a diversified approach: conservative investors should focus on low-cost ETFs like GLD or IAU with 5-7% allocations, while moderate portfolios can blend 60% ETF exposure with 30% mining stocks and 10% physical holdings for 8-12% total exposure. Physical gold serves as long-term crisis insurance, though storage costs and liquidity constraints limit practical allocations to 10-30% of total gold exposure.

Trusted Partner Presentation This Gold Miner's Next Move Could Be a Game-Changer A small-cap Nevada gold miner is already producing and has expansion in sight-backed by an onsite refinery and a $6 billion gold asset it's just starting to tap. But that's not all. One of gold's most legendary investors recently doubled his stake in the company. He's not alone. And if the expansion hits, this could be the moment retail investors wish they had watched more closely. Find out what's behind the growing buzz.

Mining Stocks Deliver Explosive Leverage to Gold Rally

Gold mining equities have emerged as the standout performers of 2025, with the VanEck Gold Miners ETF (GDX) surging 98.76% year-to-date and junior miners (GDXJ) crossing the 100% gain threshold. Newmont Corporation has more than doubled to $79.31, reaching all-time highs despite trading at just 12.5 times earnings—a historically low valuation for such robust fundamentals. This disconnect between performance and valuation metrics suggests significant upside remains as Wall Street analysts belatedly raise price targets.

The sector's profitability has reached unprecedented levels with average all-in sustaining costs (AISC) of $1,424 per ounce against gold prices above $3,600, generating margins of $1,861 per ounce. Regional variations show South American operations achieving the lowest costs at $1,197 per ounce, while North American mines average $1,508. Companies like Perseus Mining have beaten guidance with AISC of $1,235, while Endeavour Mining reduced costs by 4.81% despite increasing production by 55.71%.

Federal Reserve easing amplifies mining profitability through multiple mechanisms beyond just higher gold prices. Lower interest rates reduce project financing costs for the capital-intensive sector, while dollar weakness—already 10% in 2025—benefits miners with USD-denominated revenues but local currency costs. UBS upgraded Newmont to Buy with analysts across the sector initiating what appears to be the beginning of a major upgrade cycle as conservative gold price assumptions catch up to reality.

Before You Go...

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Conclusion

The September 2025 landscape presents a rare confluence of monetary, fiscal, and geopolitical factors all supportive of significant gold and precious metals exposure. With the Federal Reserve pivoting to easing despite above-target inflation, former IMF officials warning of emerging market-style crisis dynamics, and mining stocks generating record profits while trading at compressed valuations, the sector offers both defensive characteristics and aggressive upside potential.

The expert consensus recommending 5-15% portfolio allocations reflects not just traditional diversification logic but recognition that confidence in US government finances and the dollar's reserve currency status faces its most serious challenge in generations. As Peter Schiff warned and markets are beginning to price, this isn't merely another cyclical correction but potentially a structural realignment of global monetary architecture—one where gold's 5,000-year history as humanity's preferred store of value reasserts itself with devastating implications for unprepared portfolios.