Sam Boughedda

Updated: June 9, 2022 at 4:30 pm EDT

David Einhorn, manager of Greenlight Capital’s hedge fund, stated that gold is likely to rise at the Sohn Investment Conference.

Einhorn stated this claim on Thursday. He made it after declaring that Fed’s aggressive rate rises actually worsen the problem. He said the Fed’s program to fight inflation is like “clearing off your snowed in driveway with an ice cream scooper”.

He added that the Fed is “bluffing” regarding its capability of taming inflation.

Einhorn referred to gold as the ultimate reserve asset and stated that there was not enough gold in the world to support currency reserves. Answer: The price of gold will rise.

Wait until the Treasury is forced into an inflationary surge to sustain it. It’s worth having some gold at that time. Einhorn said, “That’s what my grandpa Ben taught us.”

Einhorn’s fund has been performing well this year. Bloomberg reports that Einhorn’s fund saw a 10.6% increase in April.