Viewpoints
Opinion

Gold Does Not Reflect Monetary Destruction, Yet

For investors, the worst decision in this environment of monetary destruction is to invest in sovereign bonds and keep cash.
Gold Does Not Reflect Monetary Destruction, Yet
peterschreiber.media/Shutterstock
|Updated:
0:00
Commentary

The money supply is rising again, and persistent inflation is not a surprise. Inflation occurs when the amount of currency increases significantly above private sector demand. For investors, the worst decision in this environment of monetary destruction is to invest in sovereign bonds and keep cash. The government’s destruction of the purchasing power of the currency is a policy, not a coincidence.