Runaway Inflation: How To Prepare For Rising Prices
The United States has experienced a higher rate of inflation in the past few years than it has in decades. While inflation has always affected the country, in 2022 alone inflation rose 9.1%, the fastest pace since 1981. Consumer prices are on the rise, with food index increasing 11%, energy index increasing 33%, and all other items increasing 6%.
On top of prices rising across all products, the US dollar is also depreciating which is contributing to the rate of inflation as well. In 2021, the US dollar depreciated 16% compared to the Mexican peso and 12% compared to the Canadian dollar. Mass printing is also leading to currency losing its value, and added to runaway inflation this means $1 in ten years could only equal $.65.
To avoid the depreciation of paper money, many investors are turning to gold. Unlike paper money, gold has a set amount which means it cannot be mass produced and lose its value. In fact, as more investors pour their money into gold, the value actually increases. Many investors turned to gold during the 2008-2012 recession, and it seems like history may repeat itself during this recession as well.
To learn more about the benefits of gold and how it has held its value for so long, take a look at the infographic below:
Brought to you by: usgoldbureau.com