Rising inflation and declining gross domestic product are the recipe for stagflation, said Nick Barisheff of BMG Group — and gold historically does well during these periods.
Nick Barisheff: Stagflation Looming, Holding Gold "More Important Than Ever"youtu.be
US inflation data released last week shows the Consumer Price Index jumped 7 percent in 2021, marking the biggest 12 month increase since 1982. But do official statistics tell the whole story?
According to Nick Barisheff, CEO of BMG Group, the answer is "no." Speaking to the Investing News Network, he pointed out that if inflation was calculated the way it was in 1980, it would be at 15 percent.
He also noted that inflation is happening at a time when gross domestic product is declining. "(With) the two of them combined we get stagflation," said Barisheff, adding, "That's the worst possible combination."
In his opinion, that makes it more important than ever to hold gold. "When we look at historically how investments did during stagflation, the only conclusion you can come to is that you need to be holding gold, because gold has done very well typically where almost everything else hasn't," he explained during the interview.
As Barisheff has previously outlined, he's concerned about an upcoming stock market correction, and believes it could be severe — when asked if a soft landing is possible, he said he doesn't think so.
"Like many of the experts, I believe that this will be the biggest market crash in history," he said.
His advice for investors is to exit the market before that happens and stay in cash — or better yet, gold. Those who get the timing right should then be able to re-enter at a discount.
"You're better (off) sitting this one out, keeping your cash dry — you'll have tremendous opportunities to buy back in," said Barisheff, adding that waiting to buy at the bottom could be "the opportunity of a lifetime."
Watch the interview above for more from Barisheff on gold as well as silver, including why he thinks the current circumstances have created the perfect storm for prices, and how high he thinks they can go in 2022.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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