Bitcoin is rocketing, commodities are surging and stock indexes are setting records almost every day. But gold has been dead in the water for months. Has it become passé in this age of cryptocurrencies? Many observers think so.
This segment of What’s Ahead shows how the skeptics are wrong and explains why gold has been the best hedge against monetary bad behavior by governments for thousands of years—and why it remains so today.
It then lays out what lies ahead: a big surge.
The yellow metal shot up 50% between the summers of 2019 and 2020. It then paused, as banks and consumers maintained large cash balances.
But the Biden administration is hot to spend the $1 trillion that’s unspent from previous pandemic relief measures and is pushing another $1.9 trillion package. It wants to follow that with a $3 trillion infrastructure bill.
A cascade of cash is about to flood the economy.
Oblivious to the inflation risk, the Federal Reserve seems eager to print the money to finance it all.
So watch out for the latter part of 2021—and buy gold before then.
Read more:Where Gold Prices Are Headed In 2021