“Gold is a special case commodity. Historically, it has done well when fear of inflation is high, specifically inflation driven by monetary expansion, having a high sensitivity to inflation when inflation is on a runaway trajectory.… That gold often comes into its own in higher inflation scenarios is related to its close relationship to currency debasement.”
USAGOLD note: MarshMcClennan is a professional firm that advises wealth managers, private banks and family offices and that is the audience to whom this detailed analysis is addressed. It says that money managers in the past were geared to a disinflationary climate suited to stock and bond ownership. Now, a sea change has occurred in which investors will be forced to deal with rising inflation “when inflation is already high.” As such, “for the first time in a generation,” a different approach is required – one that includes commodities and gold.