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Keith Weiner: The Fed is Creating a Perfect Setup for New Gold Investors

Tom welcomes back, Keith Weiner, to the show. Keith is the President & Founder of Gold Standard Institute USA and CEO of Monetary Metals.

Keith explains the two main forces that led to the price of gold remaining flat in 2022: the Fed’s decision to raise rates and the wild card of Ukraine. He explains that wage earners tend to prefer silver to gold, and that the Fed’s decision to raise rates has only recently started to have an effect on labor. Keith discusses the trend of falling interest rates over the last 40 years and how this has both unleashed capital and created an addiction to lower rates. This, he compared to a wrecking ball swinging back and forth and how the falling trend has caused companies to consume capital and become addicted to the trend.

Keith suggests the Fed’s only concern is consumer prices, then lower rates may be a better way to stimulate production and lower prices. However, he cautions that lower rates can be destructive and that the continual lowering of rates and production could lead to higher prices eventually. He also discusses other effects such as zero interest rates driving investors to riskier asset classes and how speculators can have a big impact on the price of gold and silver.

Ultimately, Keith believes that the bear market in gold is over and that the opportunity cost of owning gold may still be attractive to some. When the Fed reverses, there will be a surge in gold buying, not just from speculators but from those who are questioning the government’s debt levels.

Time Stamp References:
0:00 – Introduction
0:37 – Monetary Metals Report
9:23 – Rate Trends
18:18 – CPI & Hiking Rates
23:50 – Politics & Consequences
28:20 – Junk Bond Spreads
29:37 – Defining Recessions
35:46 – Labor Markets & Fed
39:00 – Zero Yields & Risk
42:56 – Scarcity, Price & Metals
47:36 – Speculators & Futures
51:33 – Energy Risks & Metals
56:13 – Gold Prices in 2023
1:02:32 – Education & Economics
1:04:31 – Wrap Up

Talking Points From This Episode

  • Impact of geopolitical effects in Europe and Ukraine along with Fed policy on the price of gold.
  • Negative effect of Fed policies on the economy and concerns around politics.
  • Speculators impact on gold prices and why Monetary Metals Model attempts to remove those effects.
  • When the Fed reverses, a surge in gold buying is possible due to people questioning the government’s debt.

Guest Links:
Gold Report:

Keith Weiner is the founder and CEO of Monetary Metals, an investment firm that is unlocking the productivity of gold. Most people regard gold as a dry asset, to lock away in a vault, incurring storage fees. Many are waiting for it to rise in price.

Keith and Monetary Metals are on a mission to change this.

Gold should once again serve to finance productive enterprises and extinguish debts. The dollar performs one of these functions, but not the other. Bitcoin cannot finance anything, as no business can borrow a currency that’s expected to go up a hundred times. Gold is the one thing that fills both roles, par excellence.

Keith writes and speaks extensively, based on his unique views of gold, the dollar, credit, the bond market, and interest rates. When he is not working on the business, he is developing his theory of monetary science, and an arbitrage theory of economics.

Keith also serves as founder and President of the Gold Standard Institute USA. His work was instrumental in the passing of gold legal tender laws in the state of Arizona in 2017. He has met with central bankers, legislators, and government officials around the world.

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