After the Bank of Japan left its interest rates close to zero earlier this week, financial analysts have been expecting monetary easing across major economies, including the United States.
This has sent the value of the dollar down and prompted the National Inflation Association (NIA) to announce that it may be forced to change its warning of hyperinflation onset from 2014-2015 to as soon as 2012.
"Inflation never creates wealth, but instead misallocates resources that would have [gone] towards productive purposes if the free market was allowed to operate," the organization said in a statement.
Recently, media reports have quoted Federal Reserve officials as saying that the central bank may be willing to start buying U.S. government debt, a move that the Fed believes would lower interest rates and spur economic growth. However, it would also drive the currency lower and boost price inflation.
Given these circumstances, NIA and many financial analysts have been recommending investments in gold as a way to protect assets and wealth from depreciation. In recent months, gold prices have been at their record high levels.