By Anna Gorelick
So, you are worried about inflation? You are not alone. Inflation is hitting all of us, increasing the cost of everything from gasoline to housing, and it seems like there is no end in sight. If only there were a glimmer of hope that exists in this predicament.
There is! Gold and silver prices have historically hedged against inflation, making precious metals a wise investment as traditional currencies erode, and the current market is no exception. In 2018, the price of gold was around $1,268 per ounce, but in 2022 it had risen to an average price of about $1,800 per ounce. In 2018 the average price of silver was $15.71 per ounce and by 2022 it had risen to $21.76 per ounce. This marks a significant return on investment for both gold and silver.
What makes gold and silver different from traditional investments? Precious metals have unique properties that make them inherently valuable. Unlike other currencies, gold and silver are physical assets that exist in limited quantities. Unlike other metals, gold is resistant to corrosion and oxidation, which means it does not rust or tarnish. These qualities make gold a particularly effective material for making tangible items of worth such as coins and jewelry that retain and even increase in value.
Silver also plays a notable role in the investment landscape. Compared to gold, silver is more affordable, allowing investors with smaller budgets to participate in precious metal investments. It is also more readily available, with a larger supply in the market. Silver is a beautiful metal, and extremely durable, making it ideal for creating large intricate pieces of jewelry.
Gold and silver are timeless commodities. Precious metals have always been associated with wealth and luxury, and this is not going to change anytime soon. Consider that throughout history, gold and silver have been worldwide currency. Now more than ever, there is a global market for gold and silver not tied to any one country’s currency or regulatory policy.
What does all this mean for you? Amid an ever-changing economic climate, gold and silver’s unique properties and cultural significance make it a savvy choice for anyone looking to diversify their investment portfolios. So, if you have had your eye on that stunning gold chain or elegant squash blossom, now really is the best time to invest.