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$3k gold, $50 silver price is next; Double-digit inflation next month 'wouldn't surprise me' - Briton Hill

Kitco News

(Kitco News) - As inflation continues to spiral up to the highest level in 40 years, investors are looking for hedges against rising consumer prices.

"Commodities are my go-to. Stocks are a good hedge for moderate inflation, but we are past that. I like gold because it is stable," emphasized Briton Hill, President of Weber Global Management. "Gold is easy to get in and out of, and you can buy it anywhere. Silver is also a good investment."

Hill discussed investment hedges in this inflationary environment with David Lin, Anchor at Kitco News.

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

Hill said that gold could trade between $2,500 to $3,000 an ounce and silver could rise to $50 an ounce in the next two years. "Right now, I need to be in something that is preserving my wealth, and that's why gold is a heavy part of my portfolio. It has been for the last couple of years," Hill disclosed. "But times like these create enormous opportunities. There are some screaming deals out there, but it's a matter of weighing the economic factors with the valuations, and then deciding when it's a good time to buy."

"Gold is a favorite of mine, along with silver. But silver is a wild animal, meaning it has massive swings, and it kind of shoots all over the place," Hill added.

Comparing how gold and cryptocurrencies are performing during this inflationary period, Hill noted, "The argument for crypto last year was it would replace gold as the new inflation hedge, which was going to perform wildly during this period. But in this environment, gold has been outperforming Bitcoin by a lot."

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Hill explained why he is so bullish on the commodity sector. "Commodity stocks like mining and energy companies will do great, because people will continue to use their products. Commodity prices are skyrocketing, and tend to do very well during inflationary cycles," Hill pointed out.

Hill expects food and agriculture companies to also do well in this inflationary time. "We are going to see a lot of things brought local rather than importing food and other goods. We are going to bring manufacturing local. New plants will be built in the U.S. to help with supply chain issues," he said. "It's gotten to the point where things have gotten so expensive. Now it's cost-effective to build in America again."

Discussing his outlook on inflation, Hill predicts it will keep rising. "The latest Consumer Price Index report was at 7.9% for February. I think we are going to see next month's numbers even higher, because it didn't account for rising gas, food and other prices across the board that we have seen since the outbreak of the Russia-Ukraine war," Hill stressed. "I wouldn't be surprised if we see double-digit inflation in next month's numbers."

For more on investment hedges in this inflationary environment, please watch the full video above.

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