Even in an era of inflation, gold still reigns supreme. The current inflation rate is the highest he’s had in over 40 years. In 2022, inflation will exceed 9%. This is his fastest pace since 1981. Runaway inflation suggests that one dollar in 2020 will be worth just 65 cents in his 2030. In the 12 months to July 2022, the food index faced a rise of almost 11%, while the energy index surged, experiencing a 32.9% rise. This high inflation rate has hit the dollar hard. A mere 6 cents in 1922 has the same purchasing power as a dollar today. Let’s take a look at why investing in gold is so worthwhile.
stability of gold
Over the past 100 years, the dollar has depreciated rapidly, unlike gold. A brief history of spending over the last 100 years clearly shows how the dollar has changed. After the Great Depression, after the end of World War II, the economy started to stabilize, but the cost of everything nearly doubled. In the 1970s, the economy tried to smooth out, but following the 80s, inflation hit an all-time high of 14.5% and average consumer prices began to surge. The dollar continued to depreciate in the 2000s, leading to its current economic state. COVID-19 has had a huge impact on supply and demand, bringing the economy to a halt and triggering an unconventional recession.
Through all of this, the dollar has lost 99% of its value to gold since 1933. Unlike other consumer goods, gold is stable. For example, annual college tuition has increased significantly over the past 100 years. Since the 1920s, the price of schooling has risen by almost 26,000%. Gold, by comparison, faces a significant appreciation in value. Since 1920, the price of gold has risen nearly 43,000% per ounce. History does not repeat itself, but it often rhymes. In the face of a recession, investing in gold can help protect your earnings and stabilize your business.
Gold is a worthwhile investment for many reasons. Low risk, tangible ownership, steadily increasing in value, gold yields higher than traditional savings accounts and is in stronger demand during times of economic turmoil. Gold has zero counterparty risk. One of the few % investments. This means that the probability of the counterparty defaulting is zero. In addition, precious metals cannot be devalued by mass printing, as there is a constant amount of approximately 244,000 tons on earth.
Historically, the value of gold has risen even during recessions. During the 2008-2012 recession, his interest in gold surged 101.1%. This meant that more investors turned their money into gold, increasing its value. Gold also yields higher yields. The stock market returned an average of 18.4% in 2020, while gold averaged 24.6%. Finally, the demand for gold is often high during times of economic instability. At the height of the pandemic, global gold investment demand jumped to 80% of his. Gold is an excellent safe investment option when it comes to protecting your business and wealth from economic instability.
provided by usgoldbureau.com
Brian Wallace is a columnist for Grit Daily. He is an entrepreneur, writer, and podcast host. He is the founder and president of his NowSourcing and has been featured in Forbes, TIME and The New York Times. Brian previously contributed to Mashable and now he contributes to Hacker Noon, CMSWire, Business 2 Community and more. On his Next Action podcast, he features entrepreneurs looking to reach the next level. Brian also hosts #LinkedInLocal events around the country to promote the use of his LinkedIn among professionals looking to advance their careers.