In October, inflation expectations among US consumers for the next 5 to 10 years reached 7.1%, the highest level in more than 40 years.
This figure is has duplicated in a few months, reflecting the University of Michigan Consumer Survey. Historically, inflation expectations have hovered around 3% over the past three years, marking a significant contrast to the current situation.
Rising commodity prices have eroded consumer confidence. Core consumer price index (CPI) inflation has remained above 3% for 41 months, the longest running series since the early 1990s.
This phenomenon not only reflects an increase in living costs, but also a growing concern among citizens about their ability to maintain their purchasing power.
Inflation remains a major concern for Americans, affecting consumption and savings decisions, says The Kobeissi Letter, a newsletter specializing in financial analysis.
In this context, investors have sought traditional havens such as gold and silver, historically considered protection against inflation.
Gold, for example, has set several all-time highs so far in 2024 as can be seen in the following chart. TradingView:
However, an emerging alternative is bitcoin (BTC), which has recently increased its strength as a competitor against gold as a store of value, as reported by CriptoNoticias.
Bitcoin, while not yet widely recognized as a haven of value but generally perceived more as a “risk” asset, has gained ground. Their decentralization and the limitation on their total amount they emit are characteristics that some investors see advantages over goldespecially in a market where inflation constantly erodes the value of fiat currencies.
Interest in BTC as a store of value has intensified, suggesting a possible redefinition of safe assets in the collective imagination.
Consumer confidence, severely affected by inflation, reflects an economy under pressure. The expectation that prices will continue to rise not only alters spending behavior, but also drives individuals and institutions toward assets that protect against the loss of the value of money.
This rise in inflationary expectations and the search for alternatives to traditional safe havens such as gold, and more modern ones, such as bitcoin, underscore an era of economic uncertainty. Inflation, a specter that has haunted economies throughout history, appears to be challenging the United States againand with this, redefines investment and capital protection strategies.
This article was created using artificial intelligence and edited by a human Editor.
