Why Physical Gold and Silver Still Matter in an Uncertain World

Ben Graham · 1 hora atrás

For 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.