When looking at consistent and safe investments, there are few that rank as highly as gold. Inflation has been a consistent economic force in American history since its conception, the rising prices and rates can range anywhere from a mild annoyance to a life-altering force in an American consumer’s life.
Gold is one of the few economic investments that benefits from rises in inflation. As the economy worsens and markets destabilize, gold only thrives. Since 2000, gold has been rising at historic rates, and it looks like the 2020’s are going to raise gold to prices that were never even expected.
Looking at a few of the more logistic factors of gold, there’s a reason it operates at such low risk. Gold has zero counterparty risk, or in other words, there’s no chance the other party can default on their obligations. This ties right into the fact that gold is tangible material, or in other words, there’s a set amount of it. Gold cannot be printed or inflated in any artificial way.
This in combination with its popularity during economic strife creates a higher yield than one would see in any average saving account. Gold had a 24.6% investment return rate in 2020, in comparison the stock market saw an investment return rate of 18.4% in the same year. As inflation rises every year, gold is moving from a safe and low return investment to a similarly safe but much higher return investment.
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