(Kitco News) – As inflation continues to soar to its highest level in 40 years, investors are looking for hedges against rising consumer prices.
“Commodities are my priority. Stocks are a good hedge against moderate inflation, but we’re past that point. I like gold because it’s stable,” said Briton Hill, president of Weber Global Management. . “Gold is easy to get and withdraw, and you can buy it anywhere. Silver is also a good investment.”
Hill discussed investment hedges in this inflationary environment with Kitco News anchor David Lin.
“There are also some good broad commodity ETFs that cover the whole spectrum. I like DBC, which is an Invesco ETF. It covers gold, wheat, oil and all sorts of things. It’s a good ETF that investors can hold in their portfolios,” Hill continued.
Hill said gold could trade between $2,500 and $3,000 an ounce and silver could hit $50 an ounce over the next two years. “Right now I need to be in something that preserves my wealth, and that’s why gold is a big part of my portfolio. It has been for two years,” Hill revealed. “But times like these create huge opportunities. There are offers screaming, but it’s about weighing the economics with valuations and then deciding when is the right time to buy.”
“Gold is a favorite of mine, along with silver. But silver is a wild animal, which means it has massive swings and shoots everywhere,” Hill added.
Comparing the performance of gold and cryptocurrencies during this period of inflation, Hill noted, “The argument for crypto last year was that it would replace gold as the new hedge against inflation, which was going to be rampant during this period. But in this environment, gold has significantly outperformed Bitcoin.”
Hill explained why he is so bullish on the commodities sector. “Commodity stocks such as mining and energy companies will do very well as people will continue to use their products. Commodity prices are skyrocketing and tend to do very well during inflationary cycles,” Hill pointed out.
Hill expects food and agriculture businesses to also do well in this time of inflation. “We’re going to see a lot of things brought in locally rather than importing food and other goods. We’re going to bring in manufacturing locally. New factories will be built in the United States to address supply chain issues,” did he declare. “It got to the point where things got so expensive. Now it’s profitable to build in America again.”
Discussing his outlook on inflation, Hill predicts that it will continue to rise. “The last Consumer Price Index report was 7.9% for February. I think we’re going to see next month’s numbers even higher, as that doesn’t take into account the rise in oil prices. gasoline, food and other prices at all levels we’ve seen since the outbreak of the Russian-Ukrainian war,” Hill pointed out. “I wouldn’t be surprised if we see double-digit inflation in the next month’s numbers.”
To learn more about hedging investments in this inflationary environment, please see the full video above.
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