'Inflation is not over-it's getting worse' - Degussa economist

Inflation has been building for many months, said Thorsten Polleit, chief economist at Degussa.

In November Polleit spoke to Kitco at the Deutsche Goldmesse show in Frankfurt, Germany.

Last week the the U.S. Labor Department said headline inflation rose 6.2%, the largest yearly increase in headline inflation since November 1990.

The Biden administration and Fed officials have stated that inflationary pressures are transitory based on pent-up demand, supply chain bottlenecks and labor shortages.

"It's still to be seen if this is the end of spiking inflation. I'm less optimistic," said Polleit, who noted that the U.S. Federal Reserve has increased the money stock M2 by about 36% since 2020.

"This is a huge monetary overhang. I'm quite confident that gold will shield people against the inflationary policies. [Gold is] going to remain a solid inflation hedge."

By Michael McCrae

For Kitco News

Follow michaelmccraemmccrae@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Another 'Bubble Check' for the gold sector

Gold stocks continue to hit new highs

Some mining stocks exposed to Burkina Faso take major hit

Gold stocks again hit new highs

Gold stocks reach new highs on metal price gain