Gold has proven itself as a great investment amidst economic uncertainty. Currently, the United States is experiencing the highest rate of inflation since 1981 at 9.1%. Inflation is greatly affecting the spending power of the dollar, and consumer prices are on the rise. Worldwide, other countries aren’t experiencing this level of depreciation. Compared to the Mexican peso, in 2021, the U.S. dollar depreciated 16%. Additionally, the U.S. dollar depreciated 9% compared to the euro. Inflation is not expected to slow in the near future, so it’s important to find ways to protect your bottom line.
Gold is so valuable because it has stronger demand during economic strife, has exponentially increased in value, even during recessions, and is relatively low risk investment. Compared to a traditional savings account, gold has a higher yield. Additionally, in 2020, the stock market investment return rate averaged 18.4%, and gold had a return rate that was over 6 percentage points higher, at 24.6%. By 2030, an ounce of gold is expected to be worth $8,900, which is almost a 43,000% increase from the value of gold in 1920. In comparison, the average cost of college tuition has grown a little over 25,000% since 1920. These metrics show that investing in gold is a great way to protect your wealth.
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