We Study Billionaires - The Investor’s Podcast Network TIP387: Precious Metals Masterclass w/ Tavi Costa
Oct 15, 2021
Tavi Costa, a partner and portfolio manager at Crescat Capital specializing in precious metals, joins the discussion to share his insights on the current macroeconomic climate. He explains the four pillars of inflation and how they impact wealth distribution. Tavi highlights lucrative opportunities in gold, silver, and palladium, emphasizing their potential as hedges against inflation. He also delves into the risks of deglobalization, particularly concerning China, and guides listeners on navigating investment strategies in the precious metals market.
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Four Pillars of Inflation
- Tavi Costa outlines four pillars of inflation: wealth transfer, supply constraints, monetary policy, and deglobalization.
- These pillars interact to create lasting inflationary pressures, unlike the transitory inflation many expect.
Inflationary Feedback Loop
- Inflation begets more inflation as rising costs lead to higher wage demands.
- Companies then raise prices to cover increased wages, creating a feedback loop.
CPI Discrepancies
- The Consumer Price Index (CPI) may not accurately reflect real inflation.
- The inclusion of Lyft and Uber in the CPI calculation is a prime example of this discrepancy.