USNews/CarolinaMandl-Reuters/6-9-2022
“The question is whether there’s enough gold to back the currency reserves. The answer is for the price of gold to go higher, perhaps much higher.… Just wait until they’re forced to loosen into an inflationary spike to support the Treasury. At that point, it’s best to have some gold. That’s what grandpa Ben taught me.” – David Einhorn, Greenlight Capital, speaking at the Sohn Investment Conference
USAGOLD note: Einhorn, whose hedge fund is having a banner year, believes that the Fed is bluffing about its ability to contain inflation with quantitative tightening and that it will be forced to “capitulate” sometime next year. He likened the Fed’s current balance sheet reduction effort to “clearing off your snowed-in driveway with an ice cream scooper.” Einhorn’s grandfather taught him at an early age about the baseline value of gold ownership – lessons that have stuck with him throughout his Wall Street career.
