Brief Summary
This video features Keith Weiner, founder and CEO of Monetary Metals, discussing the gold and silver markets. He shares insights from the Dubai Precious Metals Conference, highlighting the differences between Eastern and Western perspectives on precious metals. He also touches on the next potential surge in gold and silver prices, the relationship between Tether and gold, misconceptions about de-dollarization, the Fed's actions and their impact on inflation, and the outlook for the U.S. economy. Weiner also offers investment advice for 2026, emphasizing the importance of avoiding leverage.
- Eastern investors view gold as investment, Western as speculation.
- Silver demand is up due to gold's high price.
- Dollar strength is misunderstood; de-dollarization is a myth.
- Fed rate cuts are coming, despite inflation.
- Avoid leverage in precious metals investments.
Intro
Charlotte Mloud from investingnews.com introduces Keith Weiner, founder and CEO of Monetary Metals, to discuss precious metals markets.
Dubai event takeaways
Keith Weiner shares his takeaways from the Dubai Precious Metals Conference, noting a key difference between Eastern and Western markets. In the East, jewelry is largely considered an investment, sold by weight with minimal markup, while Western analysts focus on electronics, investment, and jewelry demand separately. The rising gold price is causing stress for jewelers, who face hedging costs and reduced sales due to salaries not keeping pace. Silver jewelry is gaining popularity as an affordable alternative. Weiner dismisses the idea that central banks are driving silver prices up, attributing the increase to investment/jewelry demand from those priced out of gold.
Next leg higher for gold
Predicting the timing of market moves is nearly impossible, but fundamentals can provide insight. While gold's fundamentals have remained relatively flat despite price increases, silver's fundamentals are getting stronger as its price rises. This suggests a generally rising price trend for silver, although corrections are expected. Weiner advises against using excessive leverage when investing in silver, as the monetary system is unstable.
Gold vs. silver in 2026
Silver is more volatile than gold, offering higher potential gains but also greater risks. Institutional investors, who previously exited gold positions, are now re-entering the market, indicating a potential for relentless buying and driving prices up. Weiner suggests that both gold and silver are good bets, advising investors to avoid leverage to prevent being wiped out by price fluctuations.
Tether's gold buying
Tether, a stablecoin issuer, has become a significant buyer of gold, signaling growing institutional interest. Crypto natives are opting for gold over more crypto, which is interesting. Tether is also pursuing more sophisticated strategies beyond simple gold purchases, such as building a gold desk and investing in streaming royalty companies. This institutional approach aims to generate yield from gold, reflecting a quest for yield in the market.
False Bitcoin promises
Bitcoin spruikers make promises that often prove false, such as claiming Bitcoin is "digital gold." Bitcoin is more like digital NASDAQ and not a reliable store of value. Massive drawdowns in Bitcoin's price discourage investors, leading them to view it as a trading vehicle rather than a stable store of value. When seeking stability, investors turn to gold as a safe haven.
De-dollarization myth
The concept of de-dollarization is a misconception. The dollar index is heavily weighted to the euro, and the dollar remains strong. Countries continue to issue dollar-denominated bonds, indicating a strong demand for dollars. The euro is a dollar derivative, and the dollar should be measured in gold, not euros. Currencies are sinking, not floating, and the system is unstable.
Fed, inflation in 2026
The Fed will likely cut rates, and lower interest rates can lead to lower consumer prices by incentivizing increased production. Mainstream economics has it backwards. Rising consumer prices are often due to non-monetary factors like tariffs. Trump wants lower interest rates and may replace Powell with someone who will implement them.
US economy outlook
The U.S. economy faces conflicting forces: strong dollarization attracting capital versus policies that hinder domestic production. Businesses want to invest in the U.S. due to problems in Europe, but the U.S. has policies that push them out. Automation may be a good investment. The economy will continue to be challenging for working people, with rising costs and declining returns.
Rich to get richer?
The top 10% of earners are responsible for a large portion of spending, exacerbating social tensions and inequality. Political issues often present false alternatives, with one side favoring unjust advantages and the other advocating forced equalization. Debasing the money enriches a few arbitrarily, leading to social unrest. Falling interest rates will further drive up asset prices, benefiting the asset-owning class while others simmer with anger.
Best advice for investors
Weiner advises investors to consider long-term treasuries, bet against the dollar in peripheral currencies, and invest in gold and silver. He reiterates that the prices of metals will continue to trend higher. He emphasizes avoiding leverage, as it can lead to significant losses.
Outro
Charlotte Mloud thanks Keith Weiner for his insights on the gold and silver markets. She encourages viewers to like the video, subscribe to the channel, and leave comments.
