$3,000 gold, $50 silver price is next; Double-digit inflation next month ‘won’t surprise me’ – Brite Hill

(Kitco News) – As inflation continues to climb to its highest level in 40 years, investors are looking for hedges against rising consumer prices.

“Commodities are my go-to place. Equities are a good hedge against moderate inflation, but we’ve put that behind us. I like gold because it’s stable,” said Briton Hill, President of Weber Global Management. “Gold is easy to deposit and withdraw, and you can buy it anywhere. Silver is also a good investment.”

Hill spoke to David Lin, anchor at Kitco News, about investing in hedging in this inflationary environment.

“There are also some good broad commodity ETFs that cover the whole spectrum. I like DBC, an Invesco ETF. He covers gold, wheat, oil and all sorts of things. This is a good ETF for investors to keep in their portfolios,” Hill continued.

Hill said gold could trade between $2,500 and $3,000 an ounce over the next two years and silver could go to $50 an ounce. “Right now I need to be in something that will preserve my wealth and that’s why gold is an important part of my portfolio. It’s been for the past few years,” Hill announced. “But times like these create tremendous opportunities. There are some screaming deals out there, but it’s all about weighing the economics against the valuations and then deciding when is a good time to buy.”

“Gold is my favorite along with silver. But silver is a wild beast, which means it has massive swings and is darting all over the place,” added Hill.

Comparing how gold and cryptocurrencies are performing during this inflationary streak, Hill noted, “The argument for crypto over the past year has been that it would replace gold as the new inflation hedge, which would perform strongly during this period. But in this environment, gold has outperformed bitcoin by quite a bit.”

Hill explained why he is so bullish on the commodities sector. “Commodity stocks like mining and energy companies will do great because people will keep using their products.

Hill thinks food and agriculture companies will also do well during this inflationary time. “We will see a lot of things being brought locally instead of importing food and other goods. We will bring production locally. New plants are being built in the US to help with supply chain issues,” he said. “It’s gotten to the point where things have gotten so expensive. Now it’s profitable to build in America again.”

Regarding his inflation outlook, Hill predicts it will continue to rise. “The latest CPI report for February was 7.9%. I think we’ll see the numbers even higher for next month because he didn’t take into account the rising gas, food and other prices across the board that we’ve seen since the outbreak of the Russia-Ukraine war,” he said Hill: “I wouldn’t be surprised if we see double-digit inflation in next month’s numbers.”

For more information on investment hedging in this inflationary environment, see full video above.

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