Keith Weiner: The Moonshot That The Metals Have Been Waiting For

Tom welcomes back, Keith Weiner, the president of the Gold Standard Institute USA, CEO of Monetary Metals, and a PhD economist. In their discussion, they examined the fundamental price of gold and silver which, according to Monetary Metals model, is currently above market rate. This dynamic price reflects the tension between physical markets and futures markets, with speculators in the latter holding significant leverage that can impact short-term prices. While the accuracy of this model is debated, its indication of prices being significantly above market price suggests a potential upward trend for both gold and silver.

Keith also touched on the philosophical concept of anti-concepts, drawing from Ayn Rand's ideas about proper concept formation. He used the term 'money' as an example of an anti-concept, arguing that defining money as anything other than gold or a promise to pay has led to misunderstandings and mismanagement of monetary systems.

Keith further explored the consequences of long-term trends in debt and falling interest rates. He explained how these trends lead to capital consumption through various means, including negative interest rates in countries like Germany, Netherlands, UK, and Japan, where enterprises that destroy investor capital are incentivized. In the United States, falling interest rates have led to an illusion of returns on investment as one party's wealth is converted into another's income. This 'prodigal economy' fuels consumption of capital, with Bitcoin and real estate being prime examples.

Additionally, Keith discussed differences between capital consumption, inflation, deflation, and stagflation. He argued that monetary increases can have different causes, leading to varying effects, and defined inflation as the counterfeiting or fraudulent issuance of debt or credit, resulting in inevitable deflation through losses or cram-downs. Lastly Keith explains Monetary Metals approach to making metals useful again to provide returns for companies.

Time Stamp References:
0:00 - Introduction
0:39 - Price Fundamentals
4:55 - Model Inputs & Analysis
11:23 - Profiting Vs. Stealing
16:18 - Anti-Concepts of Money
24:48 - Capital Consumption
32:28 - Inflation & Economists
36:32 - Defining Stagflation
40:01 - Drunk Monetary Policy
45:55 - Incentives & Solutions
49:56 - Incentivising Capital
54:34 - Providing Capital & Yields
57:27 - Counterparty Risk?
1:00:18 - Making Metals Useful
1:03:27 - Wrap Up

Talking Points From This Episode
- Gold and silver prices may be undervalued according to Monetary Metals model, indicating an upward trend.
- Money defined as gold or promise to pay is crucial to avoid misunderstandings in monetary systems.
- Long-term debt and falling interest rates lead to capital consumption with unintended consequences.

Guest Links:
Twitter: https://twitter.com/kweiner01
Website: https://monetary-metals.com
Website: https://goldstandardinstitute.net
Facebook: https://www.facebook.com/keith.weiner.5

Keith Weiner is the founder and CEO of Monetary Metals, an investment firm that is unlocking the productivity of gold. Most people regard gold as a dry asset, to lock away in a vault, incurring storage fees. Many are waiting for it to rise in price.

Keith and Monetary Metals are on a mission to change this.

Gold should once again serve to finance productive enterprises and extinguish debts. The dollar performs one of these functions, but not the other. Bitcoin cannot finance anything, as no business can borrow a currency that’s expected to go up a hundred times. Gold is the one thing that fills both roles, par excellence.

Keith writes and speaks extensively, based on his unique views of gold, the dollar, credit, the bond market, and interest rates. When he is not working on the business, he is developing his theory of monetary science, and an arbitrage theory of economics.

Keith also serves as founder and President of the Gold Standard Institute USA. His work was instrumental in the passing of gold legal tender laws in the state of Arizona in 2017. He has met with central bankers, legislators, and government officials around the world.