Individuals who are wondering if precious metal hedges are effective for preserving wealth throughout prolonged inflationary cycles, should research gold spot prices throughout the 1970s. While inflation eroded the dollar’s purchasing power by more than sixty percent, certain types of gold investments increased by nearly 1000% during the 1970s. Bullion prices hover just above the current gold spot price, but rare gold coin investments are subject to much more dramatic appreciation during inflationary cycles, as investors gravitate to commodities like gold and silver, and dollar-based assets generally lose their value.
Most analysts believe that our economy will most likely become worse before it gets better, as our Federal Reserve continues to drag it’s collective feet on committing to any sort of feasible recovery plan. Anxious U.S. consumers eagerly await word of inevitable interest rate hikes, and the subsequent inflation that typically follows, and more and more investors are coming to terms with the fact that the economy is a critical state of disrepair. Precious metal hedges make a great deal of sense to multitudes of pragmatic investors, because they can be held for both long-term financial protection, as well as for short-term liquidations that may be needed in the event of a cash flow crisis.
Investors who have completed their research are encouraged to contact one of our friendly specialists, who can answer your precious metal investment questions, as well as offer you institutional discounts on gold and silver bullion, and certified rare gold coin.
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