In times of mass inflation much like the United States is experiencing today, it becomes clear that gold continues to reign supreme over other forms of currency. While runaway inflation has depreciated the value of the US dollar, gold cannot depreciate in the same way that paper money can. It is estimated that $1 today will only equal about $.65 in ten years, but if trends continue gold will only increase in value, but why?
One of the main reasons gold has held its value throughout the years is because it cannot be affected by mass printing the way that paper money can. Gold has a set amount of 240,000 metric tons on the earth, whereas paper money can continuously be printed and lose its value as time passes.
While gold can hold its value due to the amount of it on earth, it also has the ability to increase in value as investors turn to it during recessions. Gold saw an over 100% surge in interest during the 2008-2012 recession, meaning more investors poured their money into gold which increased its value. While other forms of currency are suffering due to inflation or mass production, investors continue to turn to gold which will see an increase just as it was in the past.
Read more about how gold has stayed valuable throughout the years in the infographic below:
Brought to you by: usgoldbureau.com