gold and inflation

Gold’s Investment Supremacy

Gold has served as an American standard of investment for the entirety of its history. Although the value of this investment has fluctuated throughout the decades. Typically it has served as a low risk, low reward investment, something akin to a savings account, although lately that has started to shift.


This shift has been primarily motivated by the dramatic increase of inflation in the American economy within the past few years. Following the COVID-19 pandemic, America entered one of its weakest economic states in years. In 2020, the investment return of the stock market rested at 18.4%. This isn’t terrible but gold held the notably higher return rate of 24.6%


A disparity like that is generally unheard of when considering the safety that gold holds over the stock market. Gold is a physical, tangible material, meaning it requires no bank that can default or any secondary agent. As long as there is a market to value gold, gold will have value. This makes gold one of the safest investments available today.


The tradeoff, historically, was the low return rate. Although looking at the next decade, it seems that may be less of a factor. By 2030 the U.S dollar is predicted to be equivalent to $0.65 of the dollar in 2020. And the price of gold is only predicted to rise right alongside this dramatic inflation. 

Overall it’s hard to say exactly where gold will be in ten years time. What can be said though is that inflation is hitting historic highs and doesn’t seem to be stopping. If the nation will do something to stop it or give its citizens the means to deal with it is yet to be seen, but what’s certain is that gold will be a strong investment the entire way.

In An Era Of Inflation, Gold Still Reigns Supreme
Brought to you by: