London Daily

Focus on the big picture.
Monday, Jul 14, 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

0:00
0:00
Close
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
×