- We have inflation, both imported and local, and we have economic disintegration with the icy relations between the west and the east.
- What comes next is stagflation, when rate hikes won't do all that much to stop inflation which is either based on real constraints or is imported.
- Stagflation is a general economic mess, and while we think it'll only last a year or two while the supply side sorts itself out, gold will be a choice asset.
- But we take the Buffett approach: Don't invest in gold, but the companies that surround it.
- Gold-related equities traded down with equities in the current environment for no reason, and represent increasingly asymmetric risk rewards.
For further details see:
Is Now A Good Time To Invest In Gold? In Short: Yes