Most investors will dismissively tell you gold prices are entirely driven by greed and fear, and that the only way gold works as an investable asset is if the world ends.
That’s simple-minded. Gold is a stable store of value. It’s money.
“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney. Wieler continues:
“We don’t think that gold will make you rich but it will help you retain your purchasing power. So yes it has gone up several thousand percent since the demonetization of gold but it still buys you the same amount of oil or the same size house it’s just very good money.”
In the HedgeyeTV video interview above, Wieler and Hedgeye CEO Keith McCullough discuss…
- What drives gold prices (“real interest rates and energy prices,” Wieler says)
- The impact of upcoming Fed rate hikes and what that means for gold prices
- And on the U.S. economy: “Even in an absolute goldilocks scenario, gold prices would only come off a little bit until we hit the next recession and the Fed has to lower rates,” Wieler says.
For more, check out our interview with Goldmoney co-founder Josh Crumb, “GOLD: The Complete Investor’s Guide From the Smartest Guy In the Room.”