EDITOR'S NOTE: The important line in the video below is this comment by the State Street analyst: “Monetary policy steps only become evident in the next year or two.” He’s talking specifically about the impact of central bank interest rate decisions. And he likens it to “trying to steer a car where the bend is a mile away.” The big concern is the dilemma that central banks, particularly the Federal Reserve, face with regard to taming inflation without crashing the economy. Central banks can’t be too aggressive but instead must slow their respective economies in a gradual manner. The problem, of course, is that it takes at least a year to see the impact of their policies. With central banks erring on the side of caution, inflation is given plenty of space to rise further until it’s eventually choked off. This means it will likely continue in its upward trajectory, and purchasing gold as a hedge is one way to secure your portfolio before the drain on its dollar-based values finally tapers off.
Source: CNBC International TV
Originally published on YouTube via CNBC International TV.