Major Stock Market Plunge Sends Gold on a Bull Run

The stock market is on a roller coaster ride as the Fed tightens monetary policy.

The S&P 500 erased a rally of almost 2% ¹, while the Nasdaq 100 sank to its lowest since last June and the Dow fell 141 points.

The Federal Reserve announced on Wednesday that they will start a series of interest-rate increases in March, sending gold on a bull run. This price spike is being pushed even higher by the geopolitical tensions between Russia and Ukraine.

With all this turmoil, Americans are flocking to safer assets they can trust for inflation protection.

The return of market volatility reminds us why safe haven assets are so vital to protect the value of our money.

The days before inflation are beginning to feel like a distant memory.

Jay Bodenstein, 73, shares his stories of how “back in his day,” a simple hot dog at the movies was just $4.²

Compared to today, when Mr. Bodenstein was finally able to return to the movies, he sorrowfully provides us with an alarming update of how the same hot dog is now nearly 100% higher at $7.

“All the prices were through the roof,” he claimed. “You just say, forget about it.'”

The most shocking part of this story is that from the time Jay had only paid $4 for the hot dog, versus the $3 dollar increase to $7, only two short years have passed.

Traditionally, “back in my day” meant a couple of decades not a couple of years.

This is the perfect example of just how dire the battle with inflation is going.

Gas prices across the nation have seen a 50% increase in those same two years, along with food, rent, cars, and other commodities experiencing their own sharp increases.

Unfortunately, it doesn’t seem like these stories will be improving anytime soon. Last year, we reached a year-over-year inflation growth of 6.8%, the highest we’ve experienced in nearly four decades.

Newly published analysis for December’s inflation numbers reveal that we have broken into the staggering 7% inflation range.

At the beginning of the pandemic, the Fed tried to keep people quiet by claiming the rapidly increasing inflation was “transitory”, in other words – blaming it on Covid.

But now, pandemic woes are fading in the face of collapsing markets, rising interest rates and the chaos surrounding Russia.

The one asset that’s holding up in 2022 and all its turmoil: gold.

Analysts are predicting gold to trade at an average of $1,900.³ Large institutions like Goldman Sachs see prices climbing4 to $2,150.⁴

Gold could be testing new highs very soon and its long-standing value in times of uncertainty demonstrates just how attractive the metal is time and time again.

Call American Hartford Gold at 800-462-0071 to learn how thousands of Americans are protecting their wealth and retirement during this economic crisis.

1. WSJ
2. WSJ
3. WSJ
4. Bloomberg

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