Speaking to the Investing News Network, Keith Weiner, founder and CEO of Monetary Metals, discussed the factors driving gold and silver prices right now and what could be in store for the precious metals in the future.
Breaking down macroeconomics, monetary policy and supply/demand, he explained why he sees both moving higher.
"I think the fundamentals in terms of the macro are obviously there," he said about the gold market. "Sentiment certainly in the rest of the world is there — not in the US at the moment ... but I see essentially endless demand in the east."
In terms of silver, he said while there's an argument that it's being demonetized as its industrial uses gain steam, he doesn't think that's the case. "I personally think silver retains its monetary characteristics," he said.
Monetary Metals is currently offering a silver bond that will pay participants 12 percent interest on their silver.
While acknowledging that no model is perfect, Weiner said that Monetary Metals has a method of calculating fundamental prices for gold and silver based on the impact of speculators in the highly leveraged futures market.
"Our model can see whether the fundamentals are higher or lower," he said, noting that he last did the calculation during an International Precious Metals Institute event held the weekend of June 8 to 9. "At that time, the fundamental (price) for silver was just over US$36 (per ounce), and for gold was about US$2,700 (per ounce)."
Watch the interview above for more of Weiner's thoughts on gold, silver and the US economy.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.