The real reason inflation is transitory

Headline CPI inflation surged to 6.2% in October, the highest level since 1990. However, prices are unlikely to stay elevated forever, as technological innovations will create a more cost-efficient economy, said Tim Ghriskey, senior portfolio strategist at Ingalls and Snyder.

“We’re in this technological revolution. I think it’s greater than the industrial revolution from over a century ago. The innovation continues, and we’re going to just continue to see costs come out of companies, and companies being run more efficiently,” Ghriskey told David Lin, anchor for Kitco News. “I think that technological deflationary factor is huge and going to continue.”

On gold, Ghriskey calls it the “anti-investment.”

“It’s a fear investment. When you think everything is going to fall apart is when you put money into gold. There are people that hold it forever. I have a hard time believing that that’s really a good thing, because if we’re in Armageddon and you take your hunk of gold out to a farm and I’d like to give you this for a bunch of your crops, I’m not sure farmers would make that trade,” he said.

For more information on which stocks to look at for a strategic investment during a deflationary global economy, watch the video above.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.


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