There have been some mixed headlines surrounding inflation this week…
Inflation is at its highest level since 1990, but author E.B. Tucker says it’s not going to stop there.
Tucker told Kitco News that he believes inflation is going to kill the American Dream.
He said, “6% is only the beginning. It’s going to go much higher, it’s not transient.” He also said, “[Wages] are going to keep going up, but never enough. You’re never going to catch up. You’re running and running and there’s a carrot and you’re never going to catch the carrot.”
Chief Economist of Moody’s Analytics, Mark Zandi, believes high inflation won’t be coming down within the next few months, but he does expect it to die down by the end of 2022.
In a CNN opinion piece, he said, “…this uncomfortably high inflation isn’t here to stay. It won’t be lower a month or even three months from now, as quelling the chaos created by the pandemic will take time. But a year from now, as the pandemic recedes, inflation will be low enough that we won’t be talking about it.”
On the other hand, Carl Weinberg, a Chief Economist at High Frequency Economics, told CNBC’s “Squawk Box Europe” that with industrial output and GDP back to pre-pandemic levels, the U.S. economy has essentially recovered.
He argued that the labor market lagging is “typical for economic recessions,” with unemployment following the 2008 global financial crisis taking around a decade to fully recover.
He urged, “Let’s not be influenced by hysterical people like Larry Summers, who are telling us that inflation is taking off. Let’s listen to what the people who actually are making policy are telling us,” Weinberg said.
While consumer prices are rising at the fastest rate in three decades, they are causing a much-needed boost to gold.
While gold’s hot streak may still be in its early innings, experts predict good things are coming for the precious metal.
They say the upcoming demand for gold jewelry and ongoing inflation are helping with price jumps.
State Street’s George Milling-Stanley told CNBC, “We have real inflationary pressures that, the longer they persist, the more of a problem that causes, and the more people will look for inflation hedges.”
And of course, he’s talking about inflation hedges like gold.
Give us a call at (855) 905-5317 to see how precious metals can help protect your retirement and future.