Keith Weiner: Fed’s Actions Could Push Gold Past 2300 this Year
Tom welcomes back Keith Weiner, to the show. Keith is the President & Founder of Gold Standard Institute USA and CEO of Monetary Metals.
Keith discusses how he makes his market forecast and why he begins with ruling out certain data. He examines the basic price for metals and looks at the spread compared to futures to determine market inventory. This was the hardest year to predict because we stand at a fork in the road for the Fed. Should the Fed hike rates there will be some sort of serious consequences.
There is a lot of uncertainty at the moment and we see that uncertainty with the dollar. People are starting to question the value of the dollar and considering alternative options. Gold is the constant measure of economic value and Bitcoin does not share that key characteristic. He doesn’t believe it’s money and that it is not sound. It also lacks the tangible physical aspect.
In an environment of capital controls being implemented gold and silver become increasingly useful. They also become useful in emergencies and can bring real options in a crisis
The M1 money supply doesn’t have a good correlation to gold and that is because it doesn’t work the way people believe.
People believe that inflation is everywhere a monetary phenomenon but it’s more complex than many believe. There are regulatory issues with the production of goods today that inflate prices and many of these are not monetary related.
Gold tends to recover quickly in a market crash due to its characteristic value, especially when compared with equities and other paper assets.
Silver has more of a speculative component than what we see with gold. This causes silver to have different market dynamics.
Lastly, Keith discusses some price targets for gold and where it may head this year. He believes the Fed reaction and any rate hikes will be quite limited.
Time Stamp References:
0:00 – Introduction
0:35 – Report & Predictions
8:54 – Report Accuracy
12:35 – Gold & Bitcoin
17:13 – Capital Controls
19:13 – Fed & Ukraine
20:55 – M1 & Gold
24:05 – Rates & Inflation
28:05 – Rates & Gold
32:55 – Crashes & Gold
35:38 – Gold Vs. Silver
40:02 – 2022 Price Targets
42:14 – Wrap Up
Talking Points From This Episode
- His latest report, market uncertainty and the difficulty of making predictions.
- The many causes of inflation and the effects of poor regulations.
- Gold and silver as safe-haven assets and why Bitcoin lacks important characteristics.
Keith Weiner earned his Ph.D. from the (non-accredited) New Austrian School of Economics. He speaks worldwide about the failing dollar system and the need to rediscover the gold standard. To this end, He founded the Gold Standard Institute USA and Monetary Metals.
The former is a nonprofit focused on education and outreach. The latter makes it profitable to invest in the gold standard by paying gold interest on gold. Previously, Keith founded DiamondWare, a voice technology company that he sold to Nortel Networks in 2008.