Zero Hedge/Simon White/5-18-2023

“[T]he current lull in inflation offers the perfect opportunity to take advantage of cheap inflation hedges before price growth starts to accelerate again.” He goes on to say that “the stage is thus set for a renewal in inflation’s upward trend. This will shake confidence that inflation is a ‘one-shot’ problem and instead is likely to be with us for some time. This is likely to prompt a root-and-branch rethink about how to invest in an environment of persistent and entrenched inflation. Inflation hedges that look cheap today thus won’t be cheap for very long.”

USAGOLD note: Simon White is a Bloomberg macro strategist. He likens the current inflation situation to the 1970s in which we had periods of decelerating inflation that were calms before the inflationary storms to come. Inflation, as we have said many times, is a process rather than an event.

Gold and headline inflation
(1970-1979, log scale)

Chart courtesy of TradingView.com • • • Click to enlarge