Beware Of These Faulty “Inflation Protected” Investments

For these reasons, gold and its junior partner silver are indispensable long-term hedges against inflation and political/financial turmoil.

Over a period of decades and even centuries, the purchasing power of gold and silver tends to remain relatively constant.

The catch is that precious metals markets don’t always track inflation well in the near term.

They can suffer large cyclical declines over periods when other asset classes may be gaining.

Of course, they can also post huge gains when conventional markets are falling – that’s what makes them essential for proper portfolio diversification.

According to the World Gold Council, in years when the inflation rate has exceeded 3%, the price of gold has increased 15% on average.

Silver has the potential to do even better in an environment of rising inflation – delivering holders huge gains in real purchasing power.

When the purchasing power of the U.S. Federal Reserve note takes a dive, hard money will ultimately shine.

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