Black swan inflationary event to trigger gold-buying panic in next 2-3 years – Goehring & Rozencwajg Associates – by Anna Golubova (Kitco News – July 8, 2021)

(Kitco News) Inflation is already here, but prices could rise significantly higher in the next several years, creating a gold-buying panic, according to Rozencwajg Associates managing partner Leigh Goehring.

“We already have 5% inflation. And it’s safe to say this 5% inflation will stick for the next six to 12 months. And then we could have a black swan event, and prices go significantly higher. Just like what happened back in the 1970s,” Goehring told Kitco News.

Governments around the world can’t continue to print massive amounts of money with no consequences. And these harmful negative effects will start to come into view as soon as next year, Goehring pointed out.

One very important element that is currently missing from the risk of rising prices is inflationary psychology.

“In the 1970s, you had both inflation and severe inflationary psychology. What really tipped off that inflationary psychology was the 1973 Arab oil embargo, which saw oil prices surge,” Goehring noted. Right now, there is just inflation but no inflation psychology. However, this could change in 2022.

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