We already know that when inflation spikes, so too do gold prices. Many analysts and financial institutions are already calling for record gold highs on the back of runaway inflation – something which seems all the more likely after Federal Reserve chairman Jerome Powell admitted earlier this week that inflation no longer seems transitory and could in fact rise further.
Leigh Goehring, the managing partner of Goehring & Rozencwajg Associates says that this now sets the scene for a price-busting gold rally, with expected inflation highs of at least 9%. He said, “We’re getting closer to the explosion of gold prices to the upside. I’m a big believer that inflation is not going away. It’s going to continue to be a problem. We could be looking at a black swan event in inflation. It could be an oil shock, natural gas shock or agricultural shock.
“It is going to force the Fed to raise rates. The central bank will start, but that will create such havoc that the Fed will have to stop. In response, gold will first pull back. But that will be the final retreat before the massive gold bull market. Once the precious metal bottoms from the Fed’s tightening action, it will begin its massive bull market.”
Don’t delay. Buy gold now to make the most of this opportunity.