Gold does not necessarily increase in line with inflation on a year by year basis, but in the long term it will maintain it's purchasing power. Besides, if you think inflation is 3% you are mistaken. It is much higher and increasing when you look at essentials such as food, energy and rent. Sure you might be able to purchase discounted consumer goods, but if food, energy and rent are increasing at high rates, soon nobody will be able to afford consumer goods. An article this morning on Zerohedge points out that cars in the UK are not selling. A symptom perhaps?
If you bought gold in the UK 10 years ago, you would be doing just fine now as the pound has collapsed. In the next 10 years I would suggest that you will probably also do fine. Take a step back and look at the bigger picture. Now more than ever you need to protect your wealth.
Gold is money so it's like savings. You need to look at it over longer periods of time. Since 2008 it is up from around $675 and from 2001 from $250 granted it did spike at $1920 in 2011 but if you dollar cost average it is the best way to save.
Gold does not necessarily increase in line with inflation on a year by year basis, but in the long term it will maintain it's purchasing power. Besides, if you think inflation is 3% you are mistaken. It is much higher and increasing when you look at essentials such as food, energy and rent. Sure you might be able to purchase discounted consumer goods, but if food, energy and rent are increasing at high rates, soon nobody will be able to afford consumer goods. An article this morning on Zerohedge points out that cars in the UK are not selling. A symptom perhaps?
If you bought gold in the UK 10 years ago, you would be doing just fine now as the pound has collapsed. In the next 10 years I would suggest that you will probably also do fine. Take a step back and look at the bigger picture. Now more than ever you need to protect your wealth.
Gold is money so it's like savings. You need to look at it over longer periods of time. Since 2008 it is up from around $675 and from 2001 from $250 granted it did spike at $1920 in 2011 but if you dollar cost average it is the best way to save.