Want to Protect Your Assets against Inflation? Consider Owning Precious Metals like Gold And Silver
The comments below are an edited and abridged synopsis of an article by Arsenio Toledo
As US inflation soars to record highs, analysts believe it is time to invest in inflation hedges that can keep your assets from depreciating. The best investments to make right now are precious metals like gold and silver.
According to the latest CPI, the cost of goods rose by 7% year-on-year last month. This is slightly above the previous record of a 6.8% year-on-year increase last November, and the largest year-on-year price increase since June 1982.
Core inflation, which does not take into consideration volatile goods like food and energy, accelerated by even more compared to the previous reading. It rose by 5.5%, nearly a full percent above the 4.9% annual pace.
This is the sixth time in the last nine months that core inflation rose by more than 0.5% compared to the previous month, and there is nothing to suggest that it will fade in any meaningful way. Rather, the data suggests that inflation is going to pick up in the next few months, dragging down more sectors of the economy.
One of the best ways to hedge assets against inflation is to invest in gold and silver, especially since the US government is about to order the Fed to print more money, falsely believing this to be the solution to inflation.
Those who want to invest in precious metals should do so quickly, as gold and silver prices are being pressured by the wider economic situation, supply constraints and declining ore grades.
Gold and silver prices are expected to stay high in the near future as investors remain worried about the state of the economy, as well as concerned about possible US involvement in a potential conflict between Russia and Ukraine.