(Kitco News) This will be a “decade of shortage” defined by high inflation and a failed attempt to raise rates – the perfect combo to trigger a massive rally in gold, said Goehring & Rozencwajg Associates managing partner Leigh Goehring. Next year, inflation could already be pushing 9%, and it could get a lot worse, Goehring told Kitco News in an interview.
“We’re getting closer to the explosion of gold prices to the upside. I’m a big believer that inflation is not going away. It’s going to continue to be a problem. We could be looking at a black swan event in inflation. It could be an oil shock, natural gas shock or agricultural shock,” Goehring said.
Federal Reserve Chair Jerome Powell already shocked the markets this week by dropping the phrase that “inflation is transitory” and stating that the U.S. central bank will be discussing accelerating the pace of tapering at the upcoming December meeting.
An inflationary black swan event could kick-start that inflationary psychology, which has been missing despite annual U.S. inflation running hot at 6.2%. “It is going to force the Fed to raise rates.