Investors often look to hedge against inflation when planning their portfolio and many turn to gold as a safe asset in times of economic uncertainty.
“Gold is widely accepted as a hedge against inflation because its price is less vulnerable to market fluctuations and can maintain purchasing power during periods of soaring prices,” says Mina Tadrus, CEO of Tadrus Capital. “The metal holds up well against currency depreciation, as it tends to become more valuable due to rising demand relative to supply at higher inflation levels.”
As Tadrus explains, “Gold is sought after because of its durability, scarcity, beauty, liquidity and historic status as a store of wealth. Many turn to it as a safe asset in times of economic uncertainty.”
Source: CBS News
Author: Aly Yale
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