Gold Prices During Inflation – Get Your Free Gold IRA Kit

The effect inflation has on gold prices rise during inflation is that it causes the price of gold to rise.

The reason for this is that when money is being printed by a government, the purchasing power of that currency falls.

When gold is viewed as a currency (in addition to an investment commodity), it’s supply is fixed and does not change. So when all other currencies are losing their purchasing power due to inflation, gold stays at the same price in comparison with those currencies.

As you can see above, there has been roughly 15x times more gold mined since 1960 than before 1960 – which means the amount of gold has increased 15x since then… but notice how during periods of high levels of inflation over that period, such as 1980-1992 and 1995-2007, gold prices rise substantially during that time period compared to the average.

Q. What makes the price of gold go up? What Happens To Gold Prices During Inflation?
A. Inflation.

The Federal Reserve can print a lot of money, but no one is going to want to use it if they’re worried that its value will drop in the future. So when there’s high levels of inflation – people invest in things like gold because they know that it will be worth more than whatever currency or other assets are losing purchasing power.

What Causes Inflation?
There are two main reasons for inflation . One is a general increase in the prices of goods and services. This could be due to higher demand, or more sellers, or because people are already charging more for their stuff–even in spite of economic downturns.

1.) Increase in Demand

When there’s a spike in inflation – it’s usually not the result of just one thing… but many things that have added up over time. The most common one is an increase in demand . When the global economy increases its level of activity (demand) for products and services – prices will automatically rise to reflect this greater need.

2.) Decrease In Supply

Other times when inflation rises – it’s because there’s a decrease in supply. A decrease in supply drives inflation by raising the prices of goods and services in short supply. Inflation usually occurs when there’s a shortage because of an event like a natural disaster – which might disrupt the growth of many crops or affect an important material used in manufacturing (e.g., oil).

3.) Increase In Money Supply

Another common cause for inflation is a rise in money supply . If more money is available to lend to individuals and businesses during times when everyone wants it at the same time, then interest rates may rise substantially, increasing all borrowing costs. It’s also likely that prices will increase as well. This can happen during times of war or if there’s been a sudden increase in currency reserves held by central banks around the world.

4.) Massive Quantitative Easing

Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. If the money supply increases by too much, then hyperinflation may occur.

A 401k rollover to a gold IRA is one of the best ways for individuals with retirement accounts to protect themselves during a recession. Gold has historically been an excellent safeguard against economic uncertainty, which makes it perfect for these types of situations. Additionally, you avoid paying taxes on your investment when converting from stocks and bonds into precious metals like gold or silver.

The best option is to use a third party company like GoldCo to help you with their white-glove service rollover your 401k or IRA to a Gold IRA and back your precious savings with physical metals like Gold and Silver instead of paper assets backed by Stocks and Bonds.

Click the link in the description FreeGoldKit.org to get their help today and someone will contact you shortly! Again, visit FreeGoldKit.org for your Free Gold Guide to help you rollover your 401k or IRA to Gold!

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Disclaimer: The information contained herein does not constitute any investment, financial, tax or legal advice, and is not a recommendation to buy, sell or hold any financial instrument or physical asset.

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