Invest In Gold To Protect Against Inflation

Gold investing offers safety during times of economical and political uncertainty. Gold offers protection from monetary inflation and unsound political policies. The price of gold is determined by inflation, fluctuations in currencies, interest rates, political and economic conditions, supply and demand.
There are three primary reasons why investors buy gold:

1. Hedge against inflation:
Gold is a hedge against inflation and it offers protection against an depreciating currency.
Recent research from the World Gold Council shows that gold has held its value over the long term when compared with other commodities. The relative price of gold has remained almost constant over the past 50 years. However, with inflation, the value of your savings, in real terms, would decline. Gold may not make you rich but it will keep your wealth intact.

2. Hedge against deflation:
Gold offers protection both during inflation and deflation (rising prices vs. falling prices). In a deflationary environment where banks, companies, states goes bankrupt and prices of financial assets fall, gold still maintains its purchasing power relative to other assets. It may even appreciate against other assets. Gold is preferred because it does not run the risk of default.

3. Safe haven
Gold is considered a safe-haven asset as throughout history it has been viewed as a store house of value. It is essentially a currency that cannot be manipulated by the interest rate policies of any one government.