The David Lin Report Economist: Gold To $6,000 As Economy Implodes, Fed Loses Independence | Steve Hanke
Sep 22, 2025
Joining the discussion is Steve Hanke, a Professor of Applied Economics at Johns Hopkins University and a prominent expert on currency and monetary policy. He delves into the recent central bank actions, emphasizing their impact on inflation and market behavior. Hanke argues that gold could surge to $6,000 as the economic landscape shifts. He also critiques the Fed's loss of independence and explores the monetary strategies of major banks like the BoC and ECB. Expect insights on dollar depreciation and the potential success of a secular bull market in gold.
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Treat Crypto As Speculation
- Treat crypto as a highly speculative asset and size positions accordingly.
- Avoid treating rate cuts as a signal to take outsized risks without clear risk management.
Gold Could Peak Around $6,000/Oz
- Hanke believes current gold bull market will peak near $6,000/oz by cycle end, based on disposable income dynamics.
- He distinguishes his endogenous income-based method from shock-based scenarios that drive price spikes.
Different Paths To High Gold Prices
- Major banks (e.g., Goldman) model $5,000 gold under assumptions about Fed independence loss and capital flows.
- Hanke's higher $6,000 view uses different, income-based assumptions and expects a secular bull continuation.
