Skip to content

Additional resources for earning interest in gold

1 response to “Inflation and Gold: What Gives?”

  1. “If rising consumer prices cause the price of gold to rise, and consumer prices rose but the gold price did not, then the theory’s prediction has not come true. So there is no reason to expect it to become true in the future.” Sorry, but bad logic. If investors think the higher inflation is transitory & will decline next year they are less apt to buy gold as an inflation hedge. Gold is just one asset that competes with other assets & Bitcoin clearly is seen as a better inflation hedge by a large number of investors. Bill Gates bought farm land. Many bought rental property. If inflation is not seen as a long term threat, people will not buy gold. But if inflation continues to increase significantly, the price of gold will increase.

    Most investors don’t see the value of gold as a hedge against bad major economic events. But look what happened to gold after COVID hit. 60/40 investing will rule until we have another major market correction, or inflation spikes significantly.

Leave a Reply

Want to join the discussion?

Feel free to contribute!

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Gold Outlook Report 2025