Cash vs. Gold vs. Inflation: Would You Prefer $2,000 or $4,900,000?

$100,000 kept in cash when the US went off the gold standard in 1933 is now worth an inflation-adjusted $2,000.

The same $100,000 kept in gold? Now worth $4.9M.

Inflation = Game, Set, Match: Gold.

Fears of rising inflation will push the gold price higher. Gold has plenty of room to run up to the top end of its range, near $1,360. If it breaks above that ceiling and heads higher, it won’t take much to test $1,400.

Last week, gold saw a bit of a rally early, likely inspired by renewed dollar weakness, but flattened out as the week went on. That kept gold well within its $1,300 and $1,360 trading range. But I don’t expect that to last too much longer.

Gold prices in 2018 will be heading considerably higher.

The common thread I see through this unfolding saga is the risk for intensifying inflation. And Friday’s jobs gains number, at 313,000 – solidly ahead of the forecast 200,000 – is pointing squarely in that direction.

ORIGINAL SOURCE: How Rising Inflation Will Drive Gold Prices Higher by Peter Krauth at The Wall Street Examiner on 3/12/18