Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Financial Adviser Says He'd Buy Spiking Gold Only When Banks Print Money Like There's No Tomorrow

Financial Adviser Says He'd Buy Spiking Gold Only When Banks Print Money Like There's No Tomorrow

The global stock markets, including the US tech sector, have been experiencing pressure on the prices of shares amid fears that inflation might get out of hand as a result of governments and central banks actively stimulating their economies to help them overcome the effects of the coronavirus pandemic.

The rally of the price of gold, which started on 1 April, is not going to stop and is likely to reach the level of $2,200, but not for reasons most people think the precious metal is spiking, Lee Munson, the Chief Information Officer and president at the Portfolio Wealth Advisors, said in a comment for Kitco News. While it is true that gold became the last of the stock market's assets to react to fears of increasing inflation, it is wrong to predict the future of the trend based solely on inflation expectations, the analyst believes.

According to him, there has been a "regime change" in the gold market due to The US Treasury and the US Federal Reserve's being primarily concerned not with inflation, but potential deflation. Munson believes that the Fed will actually be content with inflation climbing to "2%, 2.5%, 3% for more than a month". The Portfolio Wealth Advisors' CIO said that many investors expect the Fed to overreact to such inflation levels, but he rejects such a scenario. Instead, he believes the government will continue its current money-printing practices.

"Inflation is definitely a risk, but people are overreacting to the magnitude of the actual price pressures. I think many people are thinking of the late 70s, early 80s type of inflation — when gold peaked. I don't think that's the magnitude we'll get", the analyst said.

Munson explained that due to the concerns of a possible recession amid the economic recovery after the 2020 lockdowns, the Federal Reserve is "forced" to keep the interest rates low. Otherwise, the hike in rates will hit corporate and household debts. This practically means that the US authorities will not be taking regulatory action for some time, possibly allowing the precious metal to reach new heights.

As the Portfolio Wealth Advisors' CIO explained, money printing itself does not always result in inflation, meaning that the Fed can allow the practice to go on for a long period of time without the need to respond to hyperinflation and changing the rates.

"One of the biggest problems people have with gold is walking around saying it's an inflation hedge. But that's not necessarily true. […] When you have countries outside the US that have hyperinflation, and the money gets debased, gold is a store value. It has been that way for thousands of years. That's why people buy it because they're worried about their currency being debased", Munson said.

The financial analyst added that the US money printing period is likely to continue up to the first half of 2023. He concluded that it's not worth buying gold if you simply believe there will be inflation and an economic crisis ahead. In Munson's opinion, one should only do it if "the central banks are going to print money like there's no tomorrow".

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×