Gold as a Hedge Against Stagflation

Whenever inflation has been sustained at a high level, then gold generally tends to do very, very well. If we have a stagnant economy or even an economy that is actually in recession, I think gold will do even better. In the 50 years I've been looking at gold, annual average price appreciation over those seven recessions has been better than 20%. That's in periods when equities have been in negative territory because we're in recession and when bonds haven't been helping out much either. Even just periods of slower growth, gold has tended to outperform other assets.