The world of finance is abuzz with speculation about who will next helm the world’s most powerful central bank, the U.S. Federal Reserve. While the official decision is yet to be made, the prediction markets are offering intriguing odds on the potential candidates. According to Polymarket, as of mid-June 2025, the race for the next Fed Chair is tight, with Kevin Warsh leading at 21%, followed by Judy Shelton at 16%, Scott Bessent at 13% and Kevin Hassett at 9%.
While each candidate brings a distinct economic philosophy to the table, it is the potential appointment of Judy Shelton that has gold investors sitting up and taking notice. Her long-held, and often controversial, views on monetary policy and the role of gold could signal a seismic shift in the way the U.S. manages its currency, with potentially explosive consequences for the price of the yellow metal.
The Contenders: A Quick Look
Before we delve into the “Shelton effect,” let’s briefly touch on the other frontrunners.
- Kevin Hassett: A former Chairman of the Council of Economic Advisers under the Trump administration, Hassett is generally seen as a more mainstream conservative economist. His focus has often been on tax policy and economic growth, and while not an outspoken advocate for a return to the gold standard, he is considered to be more politically aligned with the President’s desire for lower interest rates.
- Kevin Warsh: A former Federal Reserve Governor, Warsh has been critical of the Fed’s quantitative easing policies and has expressed concerns about the central bank’s expanding role in the economy. He is viewed as a candidate who would likely favor a more rules-based and less discretionary approach to monetary policy, which could be seen as a positive for currency stability.
- Scott Bessent: Currently serving as Secretary of the Treasury, Bessent is also a former hedge-fund manager and economic advisor. He brings a market-based perspective and has advocated for policies aimed at boosting economic growth and has also been involved in discussions around fiscal consolidation. His stance on monetary policy is less publicly defined than that of the other candidates, but his background suggests a keen awareness of market dynamics.
While these candidates would each bring their own unique approach to the Federal Reserve, none have the deep-rooted and publicly championed connection to gold that defines Judy Shelton’s economic philosophy.
Judy Shelton: A Champion of Sound Money and Gold
Judy Shelton is an economist and author who has for decades been a vocal critic of the current fiat currency system and a staunch advocate for a return to a gold-backed monetary system. Her views are not those of a mainstream economist; they are rooted in the classical school of thought that values currency stability and sees gold as the ultimate anchor of that stability.
Her latest book, Good as Gold: How to Unleash the Power of Sound Money (2024), expands on these themes with a blueprint for integrating gold into a modern monetary framework.
Her influential books, including “Money Meltdown” and “Fixing the Dollar Now,” lay out a clear and consistent argument: the post-Bretton Woods era of floating exchange rates and discretionary central banking has led to currency debasement, excessive government debt, and financial instability. Her latest book, Good as Gold: How to Unleash the Power of Sound Money (2024), expands on these themes with a blueprint for integrating gold into a modern monetary framework. For Shelton, the solution lies in re-establishing a tangible link between the U.S. dollar and gold.
Shelton’s Vision: A Return to a Gold-Influenced System
Shelton’s proposals are not necessarily a call for a return to the rigid gold standard of the 19th century. Instead, she has advocated for a more modern, flexible approach that would reintroduce gold into the monetary system as a stabilizing force.
Shelton has in the past called for a new international monetary conference, similar to the original Bretton Woods agreement, where the world’s major economic powers would agree on a system of fixed exchange rates, with gold as a common reference point. This, she argues, would curb currency manipulation and promote global economic stability.
A more recent and concrete proposal from Shelton involves the issuance of U.S. Treasury bonds that are convertible into a specific weight of gold at maturity. This would, in her view, create a powerful incentive for the government to maintain the value of the dollar, as a failure to do so would result in a drain on the nation’s gold reserves.
At the heart of Shelton’s philosophy is the concept of “sound money” – a currency that maintains its purchasing power over time. She believes that the Federal Reserve’s dual mandate of maximizing employment and maintaining price stability has been a failure, leading to a persistent and corrosive inflation that harms savers and wage earners. A gold-backed or gold-referenced currency, she argues, would force a greater degree of discipline on both the government and the central bank.
The Potential Impact on the Gold Price: A Perfect Storm?
For gold investors, the prospect of a Judy Shelton-led Fed is tantalizing. Here’s why her appointment could be a significant catalyst for a major bull run in the gold market:
- A fundamental revaluation of gold: If the U.S. were to even hint at re-linking the dollar to gold, it would trigger a fundamental reassessment of gold’s role in the global financial system. No longer just a safe-haven asset or an inflation hedge, gold would once again be at the very center of monetary policy. This would almost certainly lead to a significant repricing of gold to a much higher level.
- Increased demand from central banks and investors: A move by the U.S. to embrace gold would likely be followed by other countries. Central banks around the world, which have already been a major source of gold demand in recent years, would likely accelerate their purchases. Individual and institutional investors would also flock to gold as a store of value in a new monetary landscape.
- A challenge to the dollar’s dominance: While Shelton’s proposals are aimed at strengthening the dollar, the initial uncertainty and the potential for a shift in the global monetary order could lead to a period of dollar weakness. This, in turn, is typically bullish for gold, which is priced in dollars.
- A psychological shift: Perhaps most importantly, the appointment of a known gold advocate to the most powerful position in central banking would send a powerful message to the markets. It would signal a loss of faith in the current fiat system and a return to the time-tested principles of sound money. This psychological shift alone could be enough to ignite a major rally in the price of gold.
A Word of Caution
Of course, it is important to remember that Judy Shelton’s appointment is far from a certainty. Her views are highly unorthodox and have faced significant opposition from mainstream economists and politicians in the past. Even if she became chair, any formal link between the dollar and gold would still require legislation from Congress and cooperation from the Treasury Department. Furthermore, the implementation of her ideas would be a complex and challenging undertaking. A return to a gold-backed system would have far-reaching and unpredictable consequences for the global economy.
Seize the Golden Opportunity Before It’s Gone
The prospect of a Judy Shelton-led Fed isn’t just an interesting economic theory; it’s a potential trigger for a historic, once-in-a-generation repricing of gold. The most astute investors understand that you don’t wait for news to be confirmed on television; by then, the market has already moved. The moment a pro-gold advocate is officially nominated, the upward price shock could be instantaneous and dramatic. This is no longer just about protecting your wealth, but about positioning it for a monumental shift in global finance. Don’t be left on the sidelines. The time to act is now, before the crowd rushes in. Secure your position and prepare for the potential surge by exploring our premium selection of physical gold bullion today at Gold Silver Mart Canada. Also consider buying silver for it has the added benefit of being priced historically low compared to gold. Check out When Gold Walks Silver Runs to learn why silver might be a better investment than gold, check out blog to learn more about gold investing.
Leave a Reply