Recession fears and the hawkish Federal Reserve triggered bouts of volatility this year – the S&P 500 had its worst half of the year since 1970, while Bitcoin saw its largest quarterly drop in more than a decade. For gold, however, it has been steady sailing, with the precious metal down just 1% since the start of the year. From KITCO News. 

The track record of the Federal Reserve is worse than any top notch weatherman predicting the next Cane. With technology the way it is, one would think they could get their act together. But the facts are on the wall, a recession is a possibility. However, hiking interest rates will not bring down inflation.

Supply chain channels have collapsed; salaries are sky rocketing. The war is still in the thick of it.  We are in the midst of wage-push inflation with no end in site. Job openings are prevalent with as many of ten million jobs needed to be filled.

The question on investors minds comes down to one thing, what do people with money do in this environment? A look back at history offers a clue. Gold has performed well in an inflationary environment.

However, with a 5% plus interest rate on savings, money will exit gold and be deposited in CD’s. We see this happening in the not too distant future. Remember that the yearly change in Social Security is predicated on the third quarter COLA. As of today, the predictions are for between 8-10% increase.

Every time you fill-up don’t forget why you are paying $5 or more at the pump.