Inflation has been building for many months, said Thorsten Polleit, chief economist at Degussa.
In November, Polleit spoke to Kitco at the Deutsche Goldmesse show in Frankfurt, Germany.
Last week the the U.S. Labor Department said headline inflation rose 6.2%, adding that this was the largest yearly increase in headline inflation since November 1990.
The Biden administration and Fed officials have stated that inflationary pressures are transitory based on pent-up demand, supply chain bottlenecks and labor shortages.
“It’s still to be seen if this is the end of spiking inflation. I’m less optimistic,” said Polleit, who noted that the U.S. Federal Reserve has increased the money stock M2 by about 36% since 2020.
“This is a huge monetary overhang. I’m quite confident that gold will shield people against the inflationary policies.Gold is going to remain a solid inflation hedge.”
0:17 Inflation pressures are building
2:19 How are investors protecting themselves against inflation.
6:53 Gold price headed above $2,000 ounce
Kitco News is the world’s #1 source of metals market information. Our videos feature interviews with prominent industry figures to bring you market-affecting insights, with the goal of helping people make informed investment decisions.
Subscribe to our channel to stay up to date on the latest insights moving the metals markets.
For more breaking news, visit http://www.kitco.com/
Follow us on social media:
Facebook – https://www.facebook.com/KitcoNews/?ref=br_rs
Twitter – https://twitter.com/kitconewsnow
StockTwits – https://stocktwits.com/kitconews
Live gold price and charts: http://www.kitco.com/gold-price-today-usa/
Live silver price and charts: http://www.kitco.com/silver-price-today-usa/
Don’t forget to sign up for Kitco News’ Weekly Roundup – comes out every Friday to recap the hottest stories & videos of the week: https://connect.kitco.com/subscription/newsletter.html
Join the conversation @ The Kitco Forums and be part of the premier online community for precious metals investors: https://gold-forum.kitco.com/
Disclaimer: Videos are not trading advice and the views expressed may not reflect those of Kitco Metals Inc.