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How are Gold and Silver a Hedge Against Inflation?

For generations, investors have done everything possible to protect the growth rate of their assets and financial holdings. Between purchasing valuable artwork to owning multiple-unit rental properties, the urge to save your hard-earned money is only going to grow as inflation threatens to increase.

Even though there are positive notes that the economy is slowly repairing itself, the fact that annual inflation was as high as 7.5% in January does not bode well for the future. That is the biggest gain in rates since February of 1982. Odds are the Federal Reserve, or an over-ambitious senator will react and cause some kind of disruption to the market.

That is why many investors have been turning to gold and silver as a hedge against future inflation. Balancing your current portfolio by purchasing some gold bullion or silver coins is a great way to ensure the value of your financial assets remains constant or, in many cases, grows.

Why is Inflation a Problem?

Before we discuss where to buy gold or silver online, it helps to understand a bit more about why the inflation rate is expected to grow. All international economies are recovering from production and cash flow loss during the global pandemic. For more than three decades, investors in the U.S. have been treated to relatively low inflation levels, but as the recovery builds up speed, there is more demand than supply. This is likely to drive up prices.

Consumers have had to deal with this increase in pricing from retail businesses. Over the past year, prices rose 41% for used cars, 40% for gas, 18% for bacon, and the list goes on and on. The fed viewed this increase as a transitory problem and underestimated the rise in inflation. The next logical step is for these rates to continue rising until the demand and supply are more balanced out. That could take years because global economies are also dealing with their own issues and the supply chain is still under duress from shipping and trucking logistics.

How Does this Effect Investing?

There are many opportunities to get quick buys at a low price in the short term because businesses are trying to adapt to the new economic reality. In the long term, there are likely millions of investors just like you looking for where to buy gold and silver so they can better protect their assets as the economy drags its feet to recover.

That is why investing in gold and silver is such a good idea. These rare metals tend to rise when the cost of living increases. That means the more inflation passed from businesses to the individual consumer, the more value being put into gold and silver.

How to Buy Gold & Silver Online

All of this investor uncertainly tends to bleed into purchase decisions. Instead of spending a few hours trying to find a quality supplier of gold and silver, why not use the experts at Ploutos? We are a family-owned and operated bullion dealer with current information directly on our site about the best prices for gold and silver online. We believe in open transparency to make your buying decision much more rewarding.

At Ploutos Gold and Silver, we offer products from different countries, bullion, rounds, bars, and more. Stop wasting your time watching the NYSE doing backflips over daily global crises and invest in one of the most secure products available. Protect your financial recourses for generations to come and pick up gold and silver today.

Disclaimer:*this is not financial advise, but only our opinion*

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