Inflation: Try to remain calm

PriceValuePartners/Tim Price/January 2020

graphic image of investor holding gold bar with three bears in the background
“3) Own portfolio insurance offering the uncorrelated potential for strong absolute returns (in our world, this means owning some of the best systematic trend-following funds). 4) Own real assets offering some degree of inflation protection or at least damage limitation. On this last point, two further questions naturally arise. 1) Got gold? 2) If you do ‘got gold’, do you really have enough ?”

USAGOLD note 1:  This well-considered analysis is something of an anomaly in the current environment when so many think deflation is the wolf at the door – not inflation.  Price quotes fund manager Harris Kupperman:  “No one is ready for inflation, but I believe it’s coming. Maybe not today or next week, but there is a powder keg of monetary supply just waiting to be unleashed by governments who think that inflation can never happen again. At first, markets will cheer a bit of inflation—then they’ll panic. The markets often do whatever the fewest people are positioned for. Who’s positioned for inflation?”

USAGOLD note 2: One of the rock-solid tenets of gold ownership is that it cares not which villain appears on the financial stage, i.e., inflation, deflation, stagflation, disinflation, hyperinflation.  It protects against any and all and cares not in which order they appear.

Image courtesy of VisualCapitalist

Repost from 1-27-2020

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