Todd Graf
Precious Metals Advisor
Todd Graf is a seasoned Precious Metals Advisor at Scottsdale Bullion & Coin. He has a decade-long career in finance, previously at Morgan Stanley and Vanguard. He is Series 7 licensed and has extensive experience in traditional and defensive assets, providing clients with solid investment strategies.
Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Seemingly overnight, the stock market dropped from record highs to a nearly 10% correction amid rampant economic uncertainty. Investors are attempting to reconcile promises of a strong economy with the current reality of instability.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek & Precious Metals Advisor Todd Graf discuss the causes behind the market’s recent drop, why more “economic pain” might be around the corner, and the potential impact of a failed Fort Knox gold audit.
Sharp Stock Losses
Steep stock market losses have been the focal point of a frantic economy, as policy confusion and weak macroeconomic data have put the country on edge. Since February highs, the S&P 500 and the Dow Jones have fallen by around 10% & 9%, respectively. This sharp decline is largely attributed to President Trump’s whipsawing tariff announcements.
The Trump administration has acknowledged the “short-term pain, long-term gain” situation induced by tariffs as it works to revitalize US manufacturing. However, the constant back-and-forth tariff policies have created a broad sense of uncertainty as investors and businesses grow hesitant in an unpredictable environment.
A nearly 10% loss across the stock market is enough to jolt investors of all risk levels, but zooming out to a broader time frame can add some perspective. The post-pandemic boom saw indices climb to multiple record highs through several years. For instance, between March 2020 and March 2025, the S&P 500 is up more than 140%.
More Economic Pain on the Horizon
The stock market slump isn’t an isolated phenomenon. Various economic indicators are flashing red, suggesting more economic turmoil on the horizon. Sticky inflation, lower GDP forecasts, and a looming government shutdown exacerbate the adverse effects of Trump’s frenetic trade policy. Although Commerce Secretary Howard Lutnick denies the possibility of a recession, President Trump declined to rule out the potential.
DOGE’s Economic Effects
Trump’s tariff policy is taking center stage in the latest bout of economic turmoil, but the core issues precede this new administration. Under the Modern Monetary Theory (MMT) model, the government has been printing and spending money with no regard for the consequences.
Under Joe Biden, the money supply was nearly doubled. This easy government cash was funneled into the stock market, pushing companies far beyond healthy evaluations. As a result, Trump and DOGE’s gutting of waste is directly impacting the stock market.
Everybody needs to understand that what Trump is doing with tariffs, everything he’s uncovering with DOGE and government spending, that’s going to have effects on Wall Street and the stock market.–
The Impacts of a Fort Knox Audit
The impact of Trump’s aggressive economic agenda isn’t relegated to conventional markets. The upcoming Fort Knox audit has the potential to transform the gold market and even the dollar. The DOGE initiative seeks to conduct a thorough investigation to determine whether the world’s largest holding of gold bullion is indeed there. Even a slight disconnect between the officially stated reserves and the actual amount could send shockwaves through the economy.
Higher Gold Prices
Whether it’s an honest accounting error carried over for decades or a massive government-led coverup, this discrepancy may send prices soaring. The gold supply would suffer an immediate loss of resources, and gold prices would rise to meet this immediately zapped availability.
“The Fort Knox audit…could drastically change the supply and demand of gold that we know about. If there are any discrepancies, we could see the price jump very quickly.”
Todd Graf
Precious Metals Advisor
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Damaged Dollar
The abandonment of the gold standard in 1971 severed official ties between the US dollar and gold. Yet, with the largest gold reserves in the world, the US has always maintained an informal relationship between its currency and the yellow metal. Thus, any inconsistencies at Fort Knox could deal a blow to the dollar’s value, too.
To help give investors key insights into this momentous issue, check out our infographic: Does Fort Knox Really Have Gold, Or Is It Just Another Conspiracy? In this 2015 report, we discuss the truth behind one of the most debated mysteries in financial history and see what it could mean for your savings.
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