Inflation is taking a massive toll on the dollar, and it isn’t expected to slow down anytime soon. Worldwide, other countries are not facing this massive depreciation. In 2021, the U.S. dollar depreciated 16% compared to the Mexican peso, 12% compared to the Canadian dollar, and 9% compared to the euro, British pound, and Chinese yuan. Over the past 100 years, there have been massive increases in the cost of living. Recently, COVID-19 shut down the economy, causing an unconventional recession. Fortunately, investing in gold can help protect your wealth.
Since the early 1930s, the dollar has lost 99% of its value compared to gold. Harry Browne, American writer, politician, and investment advisor, states “When paper money systems begin to crack at the seams, the run to gold could be explosive.” Over the past 100 years, gold has seen a 42,956% increase in pricing of an ounce of gold. To put this in perspective, the yearly college tuition only had a 25,602% increase since the 1920s. Unlike other investments, there is a 0% counterparty risk. Additionally, gold has a higher yield than a traditional savings account. Namely, gold had a 24.6% investment return rate in 2020, but the stock market return rate in 2020 averaged just 18.4%. Investing in gold is one of the best ways to maintain stability in economic uncertainty.
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