Inflation Crisis Causing Gold to Surge to Five-Month High?


It’s not news at this point that rising inflation is everywhere. Just last month, the inflation rate rose at its fastest pace in three decades.

Consumer prices were up 7.3% in parts of the country, affecting states like Iowa and North Dakota the most.

Inflation is something we’ve been warning our readers about for a while now.

We began to emphasize it from the beginning of the pandemic, and rightfully so, in our opinion.

While some may have thought that gold’s 2020 bull run would be short-term, we, like a handful of others, recognized it as a signal of deeper turbulence to come in the broader financial market and the future state of the economy.

“The worst U.S. inflation in three decades means the worst ever loss of purchasing power for cash savers,” says bullion researcher Adrian Ash to MarketWatch.

And it has resulted in gold receiving much attention recently.

Among many other vital factors, the price of gold has recently been pushed to a five-month high.

Mounting anxiety from investors depicts the Fed’s shortcoming to “keep everything under control” and sent the safe-haven metal to climb up by 3%.

The recent rally shows that the market doesn’t expect the Fed– which earlier this month announced the pace of its bond-buying tapering– to do much on tackling inflation.

In a Wall Street Journal article, Chris Gaffney, president of world markets at TIAA Bank, said:

“We’re really seeing investors say, ‘Well, this inflation could be a little more sticky, so we do need to add precious metals.”

Meanwhile, a gold price of $1,900 or more could be within reach in the coming weeks, according to Citigroup analysts.

Countries like Germany are also reacting to their recent higher inflation rates. There has been a significant increase in buying interest for gold bars from private investors.

Just how bad is the inflation crisis?

NBC recently suggested to its viewers to skip on buying a turkey this Thanksgiving in order to deal with rising costs.

It’s clear (to some) that the Fed indeed is caught in a sticky situation, and unfortunately, the ones who will more than likely suffer from the consequences are us.

Did you benefit from the gains gold experienced in 2020? If not, this may be your chance.

Don’t allow surging prices to chip away at your savings. Call American Hartford Gold today at 800-462-0071; we can help.

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