A top chief economist has warned that investors should move quickly to buy gold in order to preserve their wealth ahead of an inevitable rise in inflation.
Degussa’s Thorsten Polleit says that the large amounts of economic stimulus being funnelled into economies around the globe will inevitably lead to inflation when the COVID-19 pandemic passes, meaning consumer prices will begin to rise. A net result is that currencies such as the US dollar and Euro will lose value, eroding wealth and giving investors an urgent need to take steps to protect their wealth by buying gold now.
He said, “At the moment inflation is impacting asset markets. But the increase in the quantity of money that has been printed in the U.S. as well in the Euro area inflation will sooner or later also push up consumer prices. Money is just a means of exchange. The wealth of a nation comes from the products it produces, the apples it grows and the homes that it builds. More money doesn’t make a nation wealthier.
“Inflation benefits some at the expense of others. As the quantity of money rises, it has various effects, but eventually it will make the great majority of people poorer. Holding gold is the best way of getting a risk reduction and return enhancement in your portfolio. Holding gold, especially at current prices, is a wise thing to do.”