Stagflation is a 'perfect storm' for gold to reach new heights

6.27.22 - Stagflation is 'Perfect Storm' for Gold

Gold last traded at $1,823 an ounce. Silver at $21.13 an ounce.

NEWS SUMMARY: Precious metal prices rose Monday on bargain-hunting and a weaker dollar. U.S. stocks struggled to make a comeback from Bear market territory.

Marrone/Kitco--"We are on the 'cusp of a recession with certain stagflation, breeding a perfect storm for gold's price to rise,' said Peter Marrone, Executive Chairman and Founder of Yamana Gold Inc.

'It's difficult for me to predict gold's price in terms of precision and certainly timeframe,' he said, 'but I go back to first principles. I do not believe that we have seen the all-time high gold price.'....

'[In 1980], we were in a recessionary period, in the middle of an inflationary period,' he explained. 'We were in the middle of a war, the invasion of Afghanistan by the Russians. The Americans were calling the Russians, 'the evil empire.' So there's a lot of similarity happening in the world today to what happened then.'

Marrone went on to suggest that recent events, with high inflation, a looming recession, and war in Ukraine, are like what happened in 1980.

'In the context of [what was happening in 1980], gold's price went to around $840 per ounce.In terms of adjusted dollars, what does $840 mean today? That number is roughly $2,700-$2,800. And I certainly think that there is an excellent opportunity for gold's price to go up to those levels again.'"