Concept
Inflation Hedge
Gold Investment | Investing in Gold Bullion | Guide from BullionVault / Why choose gold investing?
"Because gold is naturally rare, people often invest in bullion bars, coins or gold ETFs when consumer prices rise sharply, hitting the purchasing power of cash savings. Gold's role as an 'inflation hedge' has worked best when interest rates lag behind the pace of inflation. Gold investing prices rose 20-fold in the 1970s but fell again in the 1980s when interest rates were then hiked above inflation."
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