“We’re in a bubble. Bubbles don’t last. When this bubble breaks, there’s going to be an adjustment. I see upward inflation…costs are going to go up.”— John Karow, Scottsdale Bullion & Coin Senior Precious Metals Advisor
The past few weeks have been frustrating for investors and consumers who were trying to gain a clear understanding of the economy’s health – or lack thereof – despite the Fed’s ambiguous talk. Earlier this month, inflation fears were confirmed when Federal Reserve Chairman Jerome Powell reversed the talk of “transitory” inflation.
Inflation is already setting new records with retail prices getting hit especially hard – just in time to hurt Christmas shoppers. Watch the video above to see what Scottsdale Bullion & Coin Senior Precious Metals Advisors Joe Elkjer and John Karow have to say about the current state of inflation and how it’s going to impact holiday shopping.
How much are the holidays going to cost?
Ever since Jerome Powell stopped describing inflation as “transitory”, the wool has been pulled up from over the eyes of consumers. For over a year, the Fed attempted to placate the country by downplaying the severity of inflation. But now, the numbers are in. And it’s evident that inflation is here to stay.
Wholesale prices have catapulted by a whopping 9.6% in November from the same time last year, blasting through to record-levels. The Labor Department’s Producer Price Index – a tool that predicts the impact of inflation before it hit consumers – jumped 0.8% in November, on top of the 0.6% rise in December.
All these numbers are painting a grinchy picture for holiday spending. In fact, Christmas shoppers can expect to pay 8% higher in retail prices this season. PNC Bank’s annual Christmas Price Index pegs consumer holiday spending at 5.7% higher than in 2019. The seemingly endless money printing by the Fed has failed to stave off inflation entirely, and people are now starting to feel its effects.
Take Advantage of the Inflation-Protections of Gold
With inflationary pressures rapidly decreasing the value of the dollar, forward-thinking investors are already looking for ways to protect their hard-earned money. The assets most at risk during extended periods of inflation are those tied directly to the greenback. As the US dollars’ worth decreases so does the value of those assets.
We’re currently in a bubble, and the bubble is going to pop at some point. Inflation is setting records and shows signs of slowing down. Smart money is flowing into reliable inflation hedges such as gold, silver, and other precious metals. These assets have remarkable stability even when the rest of the economy is on the fritz, keeping your money protected come hell or high inflation.
Don’t get caught behind the trend. Buy gold and protect yourself from the volatility of the greenback. Grab our free precious metals investing guide before the bubble bursts.
