Month: May 2021

Chief Investment Officer/Larry Light/5-10-2021

“Talk of inflation is in the air. But academic Jeremy Siegel, best known as a storied bull on stocks, tops all the inflation palaver. He thinks it will blow through the conventional expectations of 3% or so annually, up from the 1.6% inflation figure recently. In fact, Siegel believes inflation will surge a bracing 20% over the next three or four years.”

USAGOLD note: Siegel thinks stocks will do well in the runaway inflation he forecasts. “Where else are [investors] going to go?” he asks. The good professor must have forgotten how stocks fared during the inflationary 1970s. The Dow Jones Industrial Average started the 1970s at essentially 800 and finished the decade at 800 – a big loser as double-digit inflation raged. Gold, on the other hand, went from $35 to nearly $875 by the end of the decade. Apparently, a good many found another place to go.

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Reuters/Howard Schneider and Ann Saphir/5-12-2021

“It will be ‘some time’ before the U.S. economy is healed enough for the Federal Reserve to consider pulling back its crisis levels of support, Fed Vice Chair Richard Clarida said on Wednesday …”

USAGOLD note:  Clarida is vice-chairman of the Fed so one would think his stance on inflation is pretty much in line with other luminaries at the Fed, including Chairman Powell. Yields, for now, remain the be-all, end-all to which all paper gold trading remains resolutely attached. As long as that is the case, gold’s secular bull market is likely to continue but the increases will come without a whole lot of melodrama (and/or volatility) – a market where long-term accumulators anchoring their portfolios with coins and bullion can take advantage of restrained pricing to build positions.

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