Mike MilliganFounder and CEO, 1.oak Financial · Founder and CEO, 1.oak Financial

Gold and Silver Crash: What Is Next?

2 Feb 2026 · 1 min

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In this market commentary, Mike Milligan explains how investors had been riding a "debasement trade"—betting that governments would keep printing money, weakening the dollar and inflating gold and silver prices. The narrative shifted dramatically after reports that President Trump met with former Fed governor Kevin Warsh, a known monetary hawk, and intended to nominate him as the next Fed chair. Milligan argues that Warsh’s hawkish stance, favoring inflation fighting over monetary easing, undermines the assumptions that had driven the precious‑metal rally, suggesting a potential crash in gold and silver prices.

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Investors were piling in. The debasement trade, the bet that governments will continue printing money and destroying purchasing power, was working beautifully. Then came Thursday night. Reports emerged that President Trump had met with Kevin Warsh, a former Federal Reserve governor, and was planning to nominate him to be the next Fed chair. The news spread throughout the Asian markets overnight. Why does this matter so much? Well, Kevin Warsh is viewed as a monetary hawk, someone who prioritizes fighting inflation over easing money policies. The entire gold and silver rally had been built on the assumption that the Fed would continue cutting rates, that the dollar would keep weakening, and that money printing would continue. The Warsh nomination flipped that narrative on its head.