DeutscheBank: Helicopter money will be ‘disastrous’ and will lead to hyperinflation, ‘buy gold’

ZeroHedge/Tyler Durden

“Perhaps scarred by their experience, or perhaps due to the distressing human tragedy that is currently unfolding, they (i.e., analysts concerned about inflation) have been notably quiet this time around. That is unfortunate because, as the saying goes, policymakers always solve for the last crisis. We are worried that the real pain trade for markets – and the economy – is the long awaited return of inflation. A good hedge would be to buy gold, as well as inflation linked bonds in the US and Euro Area, which are currently trading at all time lows.” – Oliver Harvey, DeutscheBank

USAGOLD note:  Gold would have to trade at more than $2200 per ounce to match the early 1980s high when adjusted for inflation.  That figure does not take into account any future inflation. We should keep in mind too that fewer analysts worry about inflation these days than disinflation or deflation.  The beauty of gold as a portfolio item is that history has shown it to protect against either or both no matter in which order they arrive.

Gold Price
Adjusted for Inflation (1970- present)

Line chart showing the inflation adjusted price of gold since 19

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