The boy who cried wolf. Is an inflationary decade ahead?

Incrementum/Ronald Stoferle and xMark J. Valek/12-1-2020

“Similarly, the global paradigm of recent decades with its repeated warnings of inflation has consistently reinforced disinflation. Now, as trust in public institutions continues to erode, populist policies could serve as the bedrock of a new inflationary paradigm. We suspect the monetary developments of 2020, coupled with the recent paradigm shift, could push inflation rates significantly higher. Policymakers and investors at large are reluctant to acknowledge this possibility. Decades of the deflationary paradigm have rendered them wholly skeptical of a potential wolf attack: spiking inflation.”

USAGOLD note:  So what happens if you buy gold and the forecast inflation never arrives? Not a lot. Gold protects against disinflation (as it did in the 2000s), and stagflation (as it did in the 1970s), hyperinflation (as it is in Venezuela now), and deflation (as it did in the 1930s). It is the investment for all seasons, all the bear market scenarios. Inflation is a lone wolf.  There are others in the pack.

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