We’re living in unprecedented times and with a lingering pandemic, many Americans are fighting a physical battle for their health. A common ground for nearly all Americans seems to be a financial battle to protect our savings.
While there never seems to be the perfect solution to anything, gold has historically been the champion in times exactly like the ones we are currently facing. Holding gold has provided numerous benefits for centuries, three of which are exceptionally relevant to today’s times:
The age-old investing saying of “never put all of your eggs in one basket” has remained relevant for a reason. As we are all too familiar with, when times of economic uncertainty arises, the markets plummet along with “most” of everything else.
2020 and 2008 were not the only examples of this. While these unseen forthcoming events struck most Americans hard, some went unscathed due to their portfolio’s diversification into intrinsic and tangible assets like gold.
Take a look at this last year where the stock market fell around 30% in just a few short days. Gold soon went on to break its historic all-time high price and entered into what some may call the beginning stages of a bull market.
A common misconception about gold is that it is too complicated to acquire. In reality, gold can be purchased in multiple forms, including a Gold and Silver IRA.
A Hedge Against the Dollar
When establishments like the Fed choose to run the money printing machine 24/7 in hyper overdrive, it’s no wonder our physical currency continues to lose its value. The DXY (the value of our dollar compared to other foreign currencies) is down roughly 11% since last year, and some analysts believe it will decline even further by 5-10% before the end of 2021.
A Hedge Against Inflation
Any percent alone removed from your savings should be enough to warrant some type of action into taking steps. When the dollar performs this way, it almost always guarantees the rise of inflation.
We’ve all heard the stories of how a loaf of bread used to cost a dime back in the day or how cars were just hundreds of dollars. While the value of the dollar has done nothing but decline, the value of gold has skyrocketed.
It takes more dollars and less gold to purchase the same items as it did just ten years ago. The pandemic and lockdowns are still in effect, and so is the need for real safe havens like gold.