Part 9/15:
Inflation Hedge and Precious Metals: Stocks vs. Gold
Wilson’s view on inflation hedging was provocative: stocks, particularly high-quality equities, might serve as a better hedge against inflation than gold. He argued that the recent rise in gold prices has been driven more by central bank buying and fiat currency concerns rather than pure inflation fears. While bullish on gold overall, he emphasized that equities’ inflation-resistant qualities, combined with their growth potential, make them more compelling over the long term.
He pointed out that inflation expectations are likely to remain higher than the 2% target, making inflation resilience central to his bullish thesis.