With inflation growing steady across the globe, gold and other precious metals, in any form, are a necessity to carry in your portfolio. From the dawn of time, gold has held its intrinsic value and has been a store of wealth for people of all eras. 2022, believe it or not, is no different; when things get bad, the first thing people turn to are assets that have intrinsic, real-world value. Gold and other precious metals such as silver and palladium will always be valuable because there is just that finite supply – no matter how hard people around the world might try, you can only gain more of these metals by mining for them. No law on earth can change this fact, thus making precious metals a stand against time and power.
With increasing interest rates, rising inflation, global tension, and a currency giving “fiat” a new definition, we need a savior; gold is here to be a store of real value. Not to mention a large player in the geopolitical field has already turned back to the gold standard, leaving other countries with a currency that offers less value for its traders. So what exactly will gold do for your portfolio? Keep reading to learn more.
In the last year, inflation has hit a 40 year high in the United States. This means that each dollar you have now holds less purchasing power. Inflation is through the roof and hedging against this is a great way to contain the wealth you’ve created and save it for when you’re ready to retire.
Many of America’s retirees leave their retirement accounts invested in two things: stock and bonds. These are both tied directly to the US dollar, so if it goes down, it’s taking down retirement accounts along with it. Diversifying your portfolio with commodities and gold will allow you to have the best of both worlds.
War & Turmoil
In times of war and turmoil, gold prices increase as the stock market falls. The good thing about this is, that if you diversify your portfolio with gold, you’ll be doing well financially when there’s war, economic collapse, or other atrocities that most associate with a total loss of wealth. Making the right move of holding assets that go up when the stock market goes down is a great way to save your money, especially considering the global standing and what we’ve all endured the past two years.
In conclusion, precious metals such as gold, silver, platinum, and palladium work in harmony with the rise and fall of war, fiat currency, and other atrocities many of us don’t see coming.
Whether you’re a retiree or a 30-year-old, it makes the utmost sense to diversify your portfolio and hedge against inflation. It doesn’t make sense to blindly trust someone else with your entire wealth like a financial advisor when you personally don’t know the ins and outs of what’s going on.
We all need to stay educated and continue to seek information as the investing world is changing by the day. Gold has many real-world uses and will continue to be in demand as the decades continue.