Bloomberg/John Authers/5-26-2022
“Times like these call for commodities. That’s what common sense dictates, and it’s one of those rare occasions when experience and theory agree; in times of inflation, commodities are a better bet than either stocks or bonds. The latter stand to be damaged by inflation, while the former actively contribute to it. And indeed, commodities have had a great time of it since the inflation scare began to take hold early last year.”
USAGOLD note: We see gold as a members of the commodities complex, but having a wider profile. Inflation is not the only apocalyptic horseman it challenges. It also has a history of protecting against stagflation, deflation, and hyperinflation. So, though Authers is correct that commodities require more attention than stocks or bonds, we still see gold’s primary role as a longer-term armchair investment – portfolio insurance rather than a speculation. If, however, one chooses to treat it as speculative, Authers advice, as delivered at the link, applies.
