As the United States’ inflation soars to record highs, economic experts and analysts believe it is time for people to invest in inflation hedges that can keep their assets from depreciating. In this regard, the best investments people can make right now are precious metals like gold and silver.
According to the latest consumer price index, the cost of goods rose by seven percent year-on-year last month. This is slightly above the previous record of a 6.8 percent year-on-year increase registered in November, and the largest year-on-year price increase since June 1982.
“Core” inflation, which does not take into consideration volatile goods like food and energy, accelerated by an even larger margin compared to the previous reading. According to the Bureau of Labor Statistics, core inflation rose by 5.5 percent, nearly a full percent above the 4.9 percent annual pace.
This marks the sixth time in the last nine months that core inflation rose by more than 0.5 percent compared to the previous month.
“There is nothing in the details of the data that suggest inflation is fading in any meaningful way,” said Eric Winograd, senior economist for finance company AllianceBernstein.
The data suggests that inflation is going to pick up in the next few months, dragging down more sectors of the economy with it.
Investing in precious metals can safeguard assets
Max Porterfield, president, CEO and director of Canadian mining company Callinex Mines, believes one of the best ways people can hedge their assets against massive inflation is to invest in precious metals like gold and silver, especially since the American government is about to order the Federal Reserve to print more money, falsely believing this to be the solution to inflation. (Related: Flash mob robberies set to explode across America as mass money printing drives poor into desperation.)
“At the end of the day, I think we know it’s inevitable, and it’s more printing, because that’s been the case since the 1970s, when inflation really kicked off before, when they took the U.S. dollar off the gold standard,” said Porterfield during an interview with World Alternative Media host Josh Sigurdson. “So, inflation is back, it’s really reminiscent of that time. A lot of the same drivers are there. Obviously, this pandemic situation is a little bit more robust than the one that occurred in the early 1970s. But ultimately, it’s gonna lead to higher prices.”
Porterfield said many people are looking to invest in assets that can act as inflation hedges. He believes fewer people now trust cryptocurrencies and more people are turning to precious metals like gold and silver.
“When people are looking for a safe haven, they’re going to the precious metals, and they will continue to do that. You’re not going to have the same volatility in the precious metal space. So I do like most precious metals going forward like gold and silver,” said Porterfield.
He warned people who want to invest in precious metals to do so quickly, as gold and silver prices are being pressured by the wider economic situation, supply constraints and declining ore grades.
For those who are not interested in owning the metals physically, Porterfield and Sigurdson suggest investing in mining companies.
According to Porterfield, mining companies have an advantage during times when precious metal prices are skyrocketing.
“And when you have an increase in whatever your underlying commodity is, you’re gonna see margins expand with those increased prices,” he explained.
But Potterfield points out that the truly best way for people to properly secure their assets during times when inflation is surging is to invest in both physical precious metals and the companies that extract them.
As of Tuesday, Jan. 25, the price of spot gold – gold that is purchased immediately or “on the spot” – fell by 0.4 percent to $1,836.06 per ounce. U.S. gold futures also fell by 0.3 percent to $1,836.2. Spot silver, meanwhile, fell by 1.1 percent to $23.7 an ounce.
While this represents a small dip compared to last week’s two-month high, their prices are expected to stay high for the near future as investors remain worried about the state of the economy, as well as concerned about possible U.S. involvement in a potential conflict between Russia and Ukraine.
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Watch Josh Sigurdson’s full interview with Max Porterfield as they discuss America’s runaway inflation and the benefits of investing in precious metals.
Learn more about America’s economic situation by reading the latest articles at MarketCrash.news.