Name: Economist: Gold To $6,000 As Economy Implodes, Fed Loses Independence | Steve Hanke
Uploaded: 2025-09-21T21:57:21+00:00
Duration: 2428 s

Speakers

Steve Hanke — Professor of Applied Economics, Johns Hopkins University

David Lin — Founder & Host, The David Lin Report / ex-Anchor, Kitco News

Summary

Steve Hanke reviews recent central bank actions, arguing the Fed's rate cut is less important than money-supply growth and quantitative tightening. He remains bullish on gold, sees it peaking around $6,000 an ounce, and expects the dollar to weaken toward the 1.20-1.40 fair-value range against the euro. He also warns the US stock market is a bubble and views crypto as highly speculative.

Fed cut rates 25bp; Hanke says Fed funds obsession is misguided and money supply is key.
Hanke recommends ending quantitative tightening, which would support mortgage-backed securities and lower mortgage rates.
He expects the gold secular bull market to continue to about $6,000/oz.
He expects the US dollar to weaken, with EUR/USD fair value at 1.20-1.40.
He says the US stock market is in a bubble and will eventually deflate.
He views crypto as highly speculative.
He says the US economy may face a slowdown/recession due to prior money-supply contraction.
He reviews Bank of Canada, Bank of Japan, Bank of England, and ECB policy, with Japan the main outlier.

Ideas

Steve Hanke Professor of Applied Economics, Johns Hopkins University 0:00

Gold bull market to peak $6,000.

Hanke says gold is in a secular bull market that will continue and likely peak around $6,000 per ounce. His target is based on a straightforward historical relationship with growth in US disposable per capita income, not on Goldman's Fed-independence/dollar-collapse assumptions. He considers this the middle of the bull market and is comfortable holding until roughly $6,000.

Steve Hanke Professor of Applied Economics, Johns Hopkins University 7:23

Fed stopping QT supports mortgage-backed securities.

Hanke argues the Fed's quantitative tightening is keeping monetary policy tight and draining mortgage-backed securities from its balance sheet. If the Fed stopped QT, it would bolster MBS prices and lower mortgage rates, which he says is what the Fed should do to support housing.

Steve Hanke Professor of Applied Economics, Johns Hopkins University 15:42

US stock market bubble will deflate.

Hanke says the US stock market is in a bubble: very pricey, overhyped, and likely to eventually fall to more reasonable valuations. A slight money-supply loosening may not prick the bubble, and he does not know exactly when or how it will deflate.

Steve Hanke Professor of Applied Economics, Johns Hopkins University 37:50

Dollar to weaken, EUR/USD to rise.

Hanke expects the US dollar to keep weakening. He focuses on the dollar-euro rate, saying fair value is 1.20-1.40; with EUR/USD around 1.175, the dollar is on the strong end, so he expects it to weaken to 1.20 and further into that range.

This The David Lin Report video, published September 21, 2025, features Steve Hanke discussing GLD, mortgage-backed securities, SPY, EUR/USD. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Steve Hanke · Tickers: GLD, mortgage-backed securities, SPY, EUR/USD

Economist: Gold To $6,000 As Economy Implodes, Fed Loses Independence | Steve Hanke

Summary

Ideas

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