As we continue to roll into the new year and the market volatility appears only to be strengthening by the day, you may be wondering if gold is worth investing in during these turbulent times.
Well, the real question maybe is why are the markets so turbulent today? There are a few reasons, of course, but the big reason is because of the coming higher interest rates and deleveraging of the Federal Reserves balance sheet. But, the why behind the higher interest rates is what's very appealing to some gold investors today; high inflation.
Gold has forever been the hedge against high inflation. The thinking is that the dollar losses value as inflation goes higher, but it will continue to keep up with inflation, and historically it has pretty well. So, the Fed is currently talking about raising interest rates in the coming month in an attempt to slow inflation but not derail the economic recovery due to the negative effects caused by the Covid-19 pandemic.
So, we know that gold is good when there is high inflation, but do we know if it's good when interest rates are rising? Continue reading "Gold, Should You Own It In 2022"