How Inflation is Affecting The Popularity of Gold

Inflation has been increasing steadily  since the onset of the pandemic. In 2020, inflation rose over 9%, the fastest pace the United States has experienced since 1981 when inflation was at its highest. This high increase of prices is known as runaway inflation and it is having an effect on the value of the dollar.

With inflation at such a high rate, the US dollar has depreciated drastically compared to other global currency. If trends continue, it is estimated that the dollar will depreciate even further and $1 in 2020 will only equal about $.65 in the next ten years. Along with that it is expected that the price of nearly everything will continue to increase significantly.

The most recent time we experienced inflation at this rate was the 2008-2012 recession.
During this time investors put more money into gold which holds a higher return on investment than any other investment. Gold also has more tangible ownership since it is a naturally occurring material, and it even has more security than the stock market! When investors put their money into gold, it raised the value significantly, and investors are looking to repeat this trend now.

 Choosing investments that are strong and secure is one of the best ways to fight against runaway inflation. Gold has proven in the past that it can stand the test of time, and more people are looking to invest. To learn more about how gold has held its value over times of recession, read the infographic below:

In An Era Of Inflation, Gold Still Reigns Supreme
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