"X" marks the spot.
Reading that phrase, you're probably picturing a pirate's old treasure map... pointing to some buried chest of plundered gold.
That's probably thanks to Robert Louis Stevenson's 1883 novel, Treasure Island.
In reality, pirates didn't keep huge hoards of gold or bury it in an obviously marked location. They'd use it to buy supplies and divvy up the rest among their crews.
But one thing is true: Pirates loved gold. Between the 16th and 18th centuries, they often targeted Spanish ships moving gold and other valuables from the New World to Spain. Unlike jewels or other treasures, gold was a universally accepted currency.
Now, while pirates would spend their gold right away, most people nowadays use it as a store of wealth. It's still valued all around the world, but as an inflation hedge and a safe haven.
This year, the precious metal is off to a shaky start...
In a single day, January 30, gold fell 9%. It was also one of silver's worst days ever, crashing 26%. They both fell further the following business day.
The sell-off was triggered by President Donald Trump naming Kevin Warsh as his pick for the next Federal Reserve chair. That choice, and subsequent statements by Warsh, made some investors rethink their expectation that the Fed is about to cut rates.
Warsh has a reputation as a "hard money hawk." And hawks raise interest rates...
When interest rates are higher, fewer folks want to own assets that don't pay a yield – for example, precious metals.
But as I'll explain, the market's reaction was overdone. And we continue to expect the Fed to cut interest rates this year for several reasons.
First, Trump is on the record for wanting lower rates. He explicitly said he's choosing a Fed chair who will make that happen. While the Fed is independent of the White House, we expect the president's chosen Fed chair will share his goals.
Second, the Fed uses rate cuts to shore up the economy. And the economy has given the Fed reasons to do that. Unemployment has been inching up over the past couple years, while newly released numbers from the Department of Commerce show weak consumer spending in December.
Still, investors had this uncertainty in mind when they sold their gold and silver.
Meanwhile, silver faced an unrelated headwind this year when futures exchanges raised margin requirements on silver contracts. When margin requirements rise, leveraged traders must sell. And a flurry of selling will drive down prices.
But what likely caused most of this move is investors taking profits...
Before the one-day freefall, gold was up 35% since the end of October, and silver was up 140%.
Those are big, rapid gains that many investors would be happy to cash out. But if they all do it at once, prices slump – which is what we've seen.
In the weeks since the big sell-off, both metals have been volatile. As of last night, gold is only off its recent high by 7%, though silver is still down 26%.
But don't be spooked by this dip. I still expect higher gold prices ahead...
Due to recent moves from the U.S. government, gold now sits at the center of our financial futures and security – whether we like it or not.
And I'm not talking about the type of gold you'd bury on a deserted island or loot from a Spanish ship. It's a special type of gold investment... something you can buy right from where you're sitting.
To hear more about why I see gold prices going higher – and the best places to move your money to take advantage – click here.
Now, let's get to this week's Q&A... And as always, keep sending your comments, questions, and topic suggestions to feedback@healthandwealthbulletin.com. My team and I read every e-mail.
Don't Rely on Sleep Aids
Q: If you don't recommend melatonin, what about something like Benadryl or Tylenol PM? – D.B.
A: Thanks for your question, D.B.
Tylenol PM is one of the most common over-the-counter sleep aids. There's also Advil PM, Nytol, Simply Sleep, Sominex, Unisom, and ZzzQuil.
These medications contain diphenhydramine, which is an antihistamine used to treat allergic reactions. It's the main ingredient in Benadryl. And a side effect of diphenhydramine is that it makes you sleepy.
Pharmaceutical companies market these drugs as safe and nonaddictive. But there are side effects...
Using them can cause constipation, dizziness, and even a hangover effect that results in grogginess and poor coordination the following day.
Plus, studies have linked long-term use of drugs like Benadryl with a higher risk of dementia.
These drugs are anticholinergics, which means they block a neurotransmitter in our nervous system called acetylcholine. We need this chemical in our brains to help with memory.
A study published in JAMA Internal Medicine concluded that older adults taking an anticholinergic for three years or more had a 54% higher risk of dementia than those taking it for shorter periods.
If you're having trouble sleeping, don't turn to pills before trying better, more natural methods. First and foremost, make sure you're practicing good sleep hygiene.
As we've written before, this includes the following practices...
- Keep your room dark and cool.
- Don't have electronics in the bedroom.
- Shut off screens one hour before bed.
- Make the bedroom a place only for sex and sleep.
- Skip the nighttime snacking.
- Cut back on caffeine.
- Stick to a sleep schedule.
- Use white noise to block outside sounds.
If you find these tips aren't enough, remember this one important rule: Only take sleeping pills for two weeks or less. This will help you reduce dependency, tolerance, and long-term side effects. And if you take one, avoid the pain-reliever kind.
If you still have trouble sleeping after two weeks, go to your doctor. Sometimes medical conditions such as heartburn or anxiety can keep you tossing and turning.
What We're Reading (and Watching)...
- Did you miss it? The next decade may be rough for stocks.
- Something different: The Lego brick of the future.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
February 27, 2026