gold and inflation

Protecting Your Finances With Gold

In an era of inflation, gold still reigns supreme.  To put things in perspective, in 1922, just 6¢ had the same buying power as $1 in 2022.  Inflation is taking a massive toll on the dollar.  In this past year alone, inflation rose to 9.1%; this is the fastest pace since 1981, and inflation isn’t expected to slow down.  The depreciation of the dollar has impacted all industries.  Consumer prices are on the rise.  The food index has faced a 10.9% increase, and the energy index has faced almost a 33% increase.  Since 1933, the dollar has lost 99% of its value against gold.  Runaway inflation rates suggest that $1 in 2020 will equal $0.65 in 2030. 

Why is gold so valuable?  Gold is one of the few investments with 0% counterparty risk.  Additionally, precious metals cannot be reduced in value by mass printing; a set amount of 244,000 metric tons exists on Earth.  During the 2008-2012 recession, gold saw over a 100% surge in interest, meaning more investors poured their money into gold, increasing its value.  Finally, gold has a higher yield than a traditional savings account.  History doesn’t repeat itself but it often rhymes; protect your wealth, and invest in gold. 

In An Era Of Inflation, Gold Still Reigns Supreme
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