Why you should buy Gold during Inflationary Periods

"Gold is the money of kings, silver is the money of gentlemen"

Gold has long been seen as a safe haven asset, and for good reason. During times of economic uncertainty, such as recessions and high inflation, investing in gold can be a smart financial decision.

Here are a few reasons why you might want to consider buying gold during these times:

Reason #1 - Gold is an amazing hedge against inflation

Inflation is when the general price level of goods and services increases over time. This can erode the value of your money and lead to a decrease in purchasing power.

Gold, on the other hand, has traditionally been seen as a good hedge against inflation because it tends to maintain its value over time.

Reason #2 - Gold is a safe haven asset

During times of economic turmoil, investors often flock to safe haven assets like gold as a way to protect their wealth. This is because gold is seen as a relatively stable and reliable asset that is not as prone to the fluctuations of the stock market.

"Historically, gold has always been a safe haven against inflation and a safe haven in times of political instability"– John Paulson

Reason #3 - Gold has a low correlation with other assets

Gold prices tend to have a low correlation with other assets, such as stocks and bonds. This means that when the prices of other assets are falling, gold may still hold its value or even increase in price. This diversification can help to protect your portfolio from market volatility.

Reason #4 - Gold can be a good long term investment

While the price of gold may fluctuate in the short term, it has a history of increasing in value over the long term. This makes it a good choice for investors who are looking to hold onto their assets for the long haul.

Overall, investing in gold can be a smart financial decision during times of economic uncertainty, such as recessions and high inflation. While it is not a guarantee of success, the low correlation, stability, and long-term potential of gold make it a valuable addition to any investment portfolio.

Visit Kris Jewellers in Burlington, Ontario

Come by our store at 2201 Brant Street in Burlington, Ontario if you have any questions. We buy your new, old, and used gold or can recommend gold that makes a great investment.