The return of inflation

Capital & Conflict/Boaz Shoshan

cartoon showing bad money drives out good as Gresham pointed out“With inflation on the up and rates trudging new lows, gold looks to be a safe bet for investors wanting to park their money. As a general rule, gold likes cheap money. It’s a safe port in a storm, so can rally sharply when central banks are pumping out free money and inflation is rising. A full analysis of gold’s investment properties – its role as money through history and its supply and demand dynamics today – is beyond the scope of this report. For now, just know that when it comes to financial repression – low interest rates and high inflation – gold is exactly what you want to own”

USAGOLD note: The shifting dynamics of global economic policy evolving are something to consider in this context. Please see the full run of posts on this page early Monday – October 19th.

Repost from 10-20-2020

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