2 min read
The inflation rate for the U.S. is still abnormally low, but that doesn't mean we shouldn’t be worried about inflation—in fact, Americans should be more concerned than ever before. Low inflation can lure people into thinking it's not a problem at all; however, this could easily change in an instant if inflation continues to rise. Eventually, there will be a correction!
Gold has proven to be a good hedge against inflation, which is why the yellow metal should be on every investor's radar screen right now. This includes both individual investors and institutions as well; in fact, some financial advisors are recommending that people put at least 20% of their assets into gold these days. The price of gold doesn't change, regardless of inflation's rate.
One simple way for people to own gold is through a straightforward exchange-traded fund. This can be done in an IRA or 401k account and doesn't require any investment knowledge whatsoever; it couldn’t be easier.
Inflation is going to be a huge concern for years to come, and gold is the answer.
Americans worry about inflation because it can cause inflation-adjusted wages to drop over time, which in turn means people need more money just to afford necessities like food and healthcare. This has been true for decades now; however, there's reason to believe inflation may be on the rise very soon.
In fact, as the U.S. economy continues to recover from the pandemic, prices have also been rising — on everything from groceries to used cars to airline tickets. In July, the Labor Department said that consumer prices saw the largest one-month increase since 2008.
Gold has historically been seen as an alternative currency for countries with unstable economies (e.g., Zimbabwe) however as the U.S. Dollar continues to slip, it may prove to be a good idea to invest in alternative currency.
The consequences for not being prepared are pretty significant as inflation could wipe out a lot of people's savings; if inflation goes up too high or stays at very low rates until retirement age when its easier to live off fixed income - that means more money has been lost due to inflation because it would have had more purchasing power years ago than now which makes figuring out what amount today would be worth in the future more difficult.
Another consequence of inflation is that with rising inflation it becomes harder to keep up with the cost of goods - e.g., car insurance, healthcare, etc.; this can be especially hard for people who are nearing retirement age when their income may decrease or become fixed such as Social Security.
In order to combat these problems caused by inflation, one should save now while inflation rates are low, and make inflation-proof investments so that inflation will have less of an impact on your life.
Gold can be a good hedge against inflation because it has historically been an effective store of value and its price tends to rise when the dollar weakens. It’s also considered one of the safest investments in times of economic uncertainty, as gold prices are not dependent on any single country or region.
There are many ways to invest and inflation will still be there regardless of what you choose - so the best thing you could do is take a look at all the various options for yourself then decide which one would work best for you.
Investing in gold is a smart decision for your future! If you want to learn more about how investing in gold could help secure your financial future, browse our top recommendations!
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