Inflation is coming, preserve your wealth with gold

Gold last traded at $1,869 an ounce. Silver at $23.32 an ounce.

NEWS SUMMARY: Precious metal prices traded mixed Thursday as upbeat GDP data boosted the dollar. U.S. stocks attempted to recover from a massive sell-off ahead of major tech quarterly earnings reports.

Polleit/Kitco---"Consumer prices may be showing muted inflation pressures as the world continues to feels the effects of the COVID-19 pandemic but a major inflation threat is looming on the horizon according to one chief economist. In a telephone interview with Kitco News, Thorsten Polleit, chief economist at Degussa, said that instead of focusing on consumer inflation, investors need to pay more attention to the growing money supply as this is what is going to general higher inflation for years to come. Polleit's comments come as governments and central banks around the world continue to flood capital into financial markets to support the beleaguer global economy....'People continue to ask: 'Where is the inflation,' he said. 'But you just have to look at equity markets, real estate and bond prices. At the moment inflation is impacting asset markets. But the increase in the quantity of money that has been printed in the U.S. as well in the Euro area inflation will sooner or later also push up consumer prices.'....Polleit said that there are two major issues the global economy has to deal with when it comes to all the money that has been printed by governments and central bank. The first issues is currency debasement and the loss of purchasing power....The second significant issues being created is the growing disparity between the rich and the poor. Investors with diverse portfolios are seeing their wealth grow as inflation drives financial markets higher; meanwhile consumers who don't have investment accounts see more hardships as their dollars by fewer and fewer goods. 'Inflation benefits some at the expense of others,' he said. 'As the quantity of money rises, it has various effects, but eventually it will make the great majority of people poorer.'....Polleit added that when it comes to creating a currency that preserve's its purchasing power, gold is the best asset. He noted that it has a 1000 years of history as a store of value."