14 Aug Does Inflation Impact the Value of My Gold?
Owning gold has always been considered a wise investment due to its status as a valuable commodity. The ownership of gold can also serve as a hedge against economic inflation or deflation.
During times of economic uncertainty, owning gold has been seen as a financial safety net — but can economic inflation actually impact gold’s value? Here, we will see if its value is affected.
What Exactly is Inflation?
According to the International Monetary Fund, inflation measures how much more expensive a set of goods and services has become over a particular length of time, usually a year. In the simplest terms, inflation means a rise in prices and it can send countries into periods of instability.
Inflation is usually measured in a broad sense, but it can also be narrowly measured for a certain good or service.
Additionally, “long-lasting episodes of high inflation are often the result of lax monetary policy. If the money supply grows too big relative to the size of an economy, the unit value of the currency diminishes; in other words, its purchasing power falls and prices rise,” states the IMF.
Currently, the US is dealing with an inflation rate of about 9 percent, which is considered one of the country’s top issues.
How Inflation Can Affect The Value of Gold
When the inflation rate gets high the value of gold tends to rise in tandem. Gold has the ability to hold its value in times of economic uncertainty or recession, making it a very wise investment.
Other reasons for owning gold include:
- Gold is a tangible asset
- Gold has no counterparty risk
- Gold can be private and confidential
- Gold is liquid and portable
- Gold hedges your stock market investments
If you want to protect your finances during times of economic uncertainty while making a wise investment, gold ownership may be the answer.
Be Wise and Buy Gold With Hemming Jewelers Today
Here at Hemming Jewelers, we offer services for you to easily buy and sell gold. As Jacksonville’s number one independent custom jeweler, we take pride in helping the community with all of their gold investment needs, providing financial security, and supporting both wise and valuable economic decisions.
If you’re ready to take the next step in investing in your future through the value of gold, contact Hemming Jewelers today at 904-354-5959 or come visit us at 231 N Hogan St!