Loading ...6-11—By Chris Macintosh
As far as markets go, the “irony” of the prevailing belief that any inflation will be temporary is that the weighting to sectors which are the best inflation hedges (commodities) is the lowest in about 100 years. In other words, we are at the point in history in which investors are the least prepared for inflation.
? THE NEXT LEG UP IN GOLD
These days, the average investor is too enamored chasing the next Dogecoin, hot SPAC deal, or hype-up growth stock to even bother paying attention to gold, even though the shiny metal is hovering near all-time highs. But, as Resource Insider’s Jamie Keech explains in his new article, the price of gold is destined to soar even higher, thanks to two powerful tailwinds:
“Today, at $1,900/oz Au, we’re still in the nascent stages of a buyer’s market, though few have woken up to this fact.
You don’t need a Ph.D. in economics to understand what’s driving this trade. You just need to understand two simple concepts:
- Real Rates; and
- The U.S. Fiscal Deficit.”