Gold as a means of inflation protection?

famous billionaire John Polson, who made a fortune on the 2008 crisis, called for buying gold as a means of inflation protection. Dragmetal tests minimums this week in 2.5 years. Previously, Polson called cryptocurrencies a useless bubble. A billionaire John Polson warned that housing prices in the United States could fall again, but excluded the repetition of a new mortgage crisis. According to him, the current situation in the US housing market is fundamentally different from the one that was observed in the mid-2000s, writes Profinance.

Then many Americans could buy houses without checking creditworthiness or making an initial contribution. At the moment, we do not have mortgages of such poor quality as at that time, Paulson noted. The housing price index in the USA S&P/Case Shiller has grown by more than 40% since the beginning of 2020, while long -term mortgage rates have recently exceeded 6% for the first time since 2008, which began to impede many borrowers with financing of loans.

last year Polson predicted that a long stable Inflation will lead to an increase in bets, which will prompt investors to abandon money and bonds in favor of gold. This year, according to him, the yellow metal served as an asset-refuge, given its lower decrease compared to shares and bonds. The investor suggested that gold prices can jump if Federal -Russian Campaign to increase interest rates will not be able to suppress inflation, which will increase the demand for metal as a means of protection against it.

John Polson – trader and investment manager who received Fame on the wave of a mortgage crisis of 2008. Unlike many financial institutions who suffered crushing losses, he managed to earn billions of dollars to himself and investors. Gold prices have been updated this week from April 2020 about $ 1620 against the background of the aggressive policy for increasing bets.