For Mr Kelly, gold is the only asset “without counterparty risk” that can protect against currency devaluation and uncontrolled spending by central banks to counter coronavirus.
While inflation did not materialise after the global financial crisis in 2008 as many gold investors had hoped, he believes it will do this time.
Since the US stopped backing its currency with gold in 1971, there was nothing to constrain central banks, he said. “Our founding fathers warned us about the evils of central banking,” he said. “We’ve got to the point now where you can print as much as you want but all you do is create hyperinflation. At some point, that’s very devastating.”
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Gold bugs vindicated by coronavirus rally
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