Will Gold Hold Up Against Inflation?

The value of the dollar has increased tremendously in the last 100 years, as inflation rose nearly 10% in 2022 alone. Several important industries have suffered because of this, as food, energy, and miscellaneous item indexes have seen anywhere between a 6% and 33% increase. On top of it all, inflation is not expected to decrease, and has caused the US dollar to depreciate in comparison to other currencies like the British pound and the Chinese Yuan. Despite this, the one material that has continued to remain valuable through time is gold.

 

During the pandemic especially, prices increased, and many essential items and services like food or insurance saw their costs skyrocket. The depreciating value of the dollar did nothing to help these plights, which is why many investors, finance experts, and money-savvy citizens foud that resorting to gold was their best option. Gold has 0% counterparty risk, allows for tangible ownership, is not reduced in value by mass printing, and has held 99% of its value in comparison to the dollar. A set amount for ownership exists on earth, therefore, while many see their financial stability wavering, some have begun to focus more on this reliable precious metal.

The future of gold ownership is one that is unknown and highly dependent on the world’s financial status. However, one thing is for sure: consumers are already starting to go for gold.

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