Value of gold as potential monetary hedge has reemerged, says First Eagle's McLennan
December 17, 2025 • 3m 25s
? (Anchor)
00:00.350
so
who
do
the
markets
want
in
the
fed
chair
position
what's
really
at
stake
in
that
race
and
how
much
risk
is
there
in
the
AI
trade
right
now
let's
bring
in
peter
book
var
he's
the
chief
investment
officer
at
one
point
BFG
and
a
CNBC
contributor
and
matthew
mclennan
is
CO
head
? (Anchor)
00:14.030
of
the
global
value
team
at
first
eagle
by
the
way
lead
manager
five
star
rated
morning
far
fund
global
first
seagull
global
fund
up
nineteen
percent
this
year
outperforming
the
S
and
P
so
you
get
a
little
pat
on
the
back
and
you
can
go
first
matt
i
mean
who
would
you
like
to
? (Anchor)
00:27.150
see
in
the
fed
chair
position
and
are
you
worried
about
bubble
Matthew McLennan (Co-Head of Global Value)
00:31.750
we
don't
have
a
strong
preference
on
on
who
occupies
the
the
chair
i
think
one
of
the
broader
discussions
here
though
is
the
fed
independence
is
almost
a
second
order
reality
when
you
have
an
outsized
fiscal
situation
and
so
what
we're
quite
focused
on
here
is
the
long
term
Matthew McLennan (Co-Head of Global Value)
00:50.470
fiscal
credibility
of
the
united
states
because
i
think
that
is
the
condition
precedent
for
having
an
independent
fed
and
for
having
a
rational
chair
the
other
thing
i
would
say
is
that
the
path
of
rates
over
last
year
has
really
largely
tracked
wage
inflation
moderating
and
so
Matthew McLennan (Co-Head of Global Value)
01:03.750
really
what's
going
to
matter
going
forward
is
a
function
of
whether
job
openings
which
have
inflected
higher
recently
whether
they
follow
corporate
earnings
? (Anchor)
01:12.030
higher
i
like
what
you're
saying
there
what
do
you
think
is
going
on
with
the
behavior
of
gold
the
weaker
dollar
is
that
all
part
of
the
fiscal
story
or
no
Matthew McLennan (Co-Head of Global Value)
01:20.790
i
think
what
we're
seeing
in
terms
of
the
fiscal
challenges
in
the
united
states
are
being
mirrored
elsewhere
in
the
world
it's
not
just
the
united
states
we
have
outsized
fiscal
deficits
in
the
UK
in
europe
increasingly
japan
china
et
cetera
and
so
what
what
i
think
has
Matthew McLennan (Co-Head of Global Value)
01:34.990
happened
here
is
that
with
these
large
primary
deficits
globally
the
monetary
value
of
gold
has
arguably
re
emerged
and
the
value
of
gold
as
a
monetary
potential
hedge
has
re
emerged
and
so
even
though
gold
has
had
a
big
run
here
it's
pretty
close
to
its
fifty
year
averages
Matthew McLennan (Co-Head of Global Value)
01:53.630
versus
the
level
of
the
S
and
P
five
hundred
and
its
fifty
year
average
relative
to
the
level
of
US
government
debt
outstanding
so
arguably
gold
went
from
being
depressed
relative
to
the
nominal
assets
that
you
would
want
to
use
it
as
a
potential
hedge
against
to
more
rationally
Matthew McLennan (Co-Head of Global Value)
02:07.870
valued
and
i
think
the
other
precious
metals
complexes
followed
at
higher
with
? (Anchor)
02:11.070
some
leverage
gold
's
up
sixty
five
percent
this
year
peter
silver
's
up
what
was
that
a
hundred
and
twenty
seven
percent
these
are
wild
moves
do
you
think
that
these
gains
should
be
pocketed
now
it's
kind
of
turned
the
or
or
are
they
going
to
continue
and
what's
driving
them
Peter Boockvar (CIO)
02:27.570
i
i
think
it
does
continue
and
there's
no
doubt
that
a
lot
of
the
gains
that
have
taken
place
have
pulled
forward
some
of
the
future
gains
but
i
think
that
the
bull
market
is
still
intact
i
mean
i
think
the
the
the
noteworthy
thing
this
week
was
what
we
heard
over
the
weekend
Peter Boockvar (CIO)
02:41.310
when
the
EU
officially
indefinitely
froze
two
hundred
and
ten
billion
euros
of
russian
central
bank
assets
when
they
first
started
doing
that
along
with
the
US
post
twenty
twenty
two
's
invasion
the
vote
had
to
come
up
every
six
months
on
re
sort
of
initiating
the
freeze
now
on
Peter Boockvar (CIO)
03:00.950
at
least
a
portion
of
its
indefinite
so
it's
just
another
message
to
all
these
central
banks
around
the
world
that
owning
gold
on
your
own
territory
that
can't
be
confiscated
is
a
really
attractive
choice
particularly
when
your
other
reserves
are
in
sovereign
bonds
that
are
Peter Boockvar (CIO)
03:17.470
domiciled
in
places
around
the
world
it's
just
highlights
the
importance
of
owning
? (Anchor)
03:22.110
gold
that
you
can
domicile
yourself
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