"Gold has held its value despite the very strong bear market we've seen this year, with stocks down 10%-20%, depending on which major market you're looking at," he said at the symposium. rule. “Gold has really done its job as a store of value,” Garofalo continued. “But it will most likely rise sharply if inflation accelerates because the reality is that nominal interest rates have very limited room to rise and inflation will continue to accelerate for the foreseeable future, in my opinion.”
According to the expert, gold's fundamentals are stronger than ever, and the performance of the precious metal in the inflationary cycle of the late 1970s and early 1980s perfectly shows how it will perform in the near future. “In the late 1970s and early 1980s, it took several years for gold to gain momentum before it hit its all-time high, which today is around $3,000 an ounce,” Garofalo said.