Gold Is the Ultimate Contrarian Investment Right Now

Person holding a single piece of solid gold
Graph illustrating flucuating value of gold relative to stocks

Record Money-Printing Favors Gold

Over the past 18 months, central banks have taken unprecedented measures to prop up their economies. That includes printing money at a record pace, which has the direct effect of diluting the purchasing power of the local currency.

Graph of gold prices increasing from the 1980s to present day

Inflation to Remain Elevated

The second factor is something I’ve been writing a lot about lately — inflation. May’s consumer price index (CPI) rose 5% over the same month last year. That’s the highest rate we’ve seen since August 2008.

Graph demonstrating the increase in home prices, largest in 30 years

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Frank Holmes

Frank Holmes

Frank Holmes is the CEO and chief investment officer of U.S. Global Investors, an innovative investment manager with vast experience in global markets.