| Dear Reader, Since the start of the COVID-19 pandemic, the government has granted itself license to print money in never-before-seen amounts. Nearly a quarter of all US dollars ever created were created in 2020 alone. That does not even account for this year’s money printing, which has been even more excessive. We’re getting mixed numbers from the Consumer Price Index (CPI), but I tend to agree with my friend Peter Boockvar’s CPI analysis. He believes that “sticky and persistent inflation will continue” and though wages are moving higher, “unfortunately, inflation is running faster for many.” For a severe economic downturn to happen, we don’t even have to get to 1970s inflation levels... or even have inflation at the current, elevated levels. In this world of negative and zero interest rates, tight credit spreads, high stock valuations, and huge amounts of global debt, even a moderate 3–4% inflation trend could have catastrophic long-term effects. Luckily, there is one—and only one—asset that makes for a perfect inflation hedge: gold. Gold preserves its value in good times and bad. I’ve seen price swings in the precious metal, yes. But I’ve never seen the gold price fall off a cliff overnight. And its value will never go to zero... a statement I can’t make about any of the fiat currencies. Most of them are just numbers on a screen while a gold coin is value you can hold in your hand. The difference is unmistakable. I suggest you read our latest special report, 5 Reasons Why Portfolios Perform Better with Gold. We’ve saved you a free copy—all you have to do is sign up here and grab it. Your always looking for true value analyst, John Mauldin
Co-founder
Mauldin Economics | 