gold layed out showing how a gold ira may protect against inflation
gold layed out showing how a gold ira may protect against inflation

Disclosure: Clicking on links may earn me commission from Joining Augusta Precious Metals, at no additional cost to you. Thanks for reading!

See how Gold IRA may protect against inflation. Find out the history of it's effects and how it consistently has been used for wealth security.

How Gold May Hedge Against Inflation

Disclaimer: This website and its content are for informational purposes only and do not constitute financial advice.

In today's economic climate, inflation is a growing concern.

With the rising cost of goods and services, many Americans worry about the eroding value of their retirement savings. A Gold IRA may be a valuable tool as a hedge against inflation.

Why Inflation Matters

According to the U.S. Bureau of Labor Statistics, inflation in the United States reached a 40-year high of 7.5% in January 2024 https://www.bls.gov/cpi/. This means that the purchasing power of a dollar today is significantly less than it was a year ago. Over time, inflation can eat away at your retirement savings, leaving you with less money to live on in your golden years.

How Does Inflation Impact Retirement Savings

Inflation erodes the purchasing power of your savings over time. For example, if you have $100,000 in savings and inflation is 3% per year, in ten years, you will need $134,392 to have the same buying power. This means your $100,000 will effectively be worth less.

What Causes Inflation?

There are several factors that can contribute to inflation, including:

  • Increased demand: When demand for goods and services exceeds supply, prices tend to rise.

  • Supply chain disruptions: Disruptions to the supply chain, such as those caused by natural disasters or geopolitical events, can lead to shortages and higher prices.

  • Government policies: Certain government policies, such as printing more money, can also contribute to inflation.

Gold: A Historical Hedge

Gold has a long history of its potential as a possible hedge against inflation. Additionally, gold has a finite supply. This inherent scarcity makes gold a potentially valuable commodity that tends to hold its value, or even potentially increase in value, during periods of inflation.

Financial experts at Forbes cite research from the World Gold Council which suggests that gold may be particularly beneficial when inflation outpaces interest rates.

Updated July 28th, 2024

Share this:

Benefits of a Gold IRA

A Gold IRA allows you to hold physical gold, such as coins or bars, within an individual retirement account. This means you may be able to benefit from the potential inflation-resistant qualities of gold.

How Does a Gold IRA Work?

With a Gold IRA, you invest in physical gold that is held in a secure, IRS-approved depository. This gold is held within your IRA, subject to the same rules and regulations as traditional retirement accounts.

Considering a Gold IRA?

If you're interested in learning more about how a Gold IRA may help protect your retirement savings from inflation, consult with a financial advisor who specializes in precious metals IRAs.

They can help you determine if a Gold IRA is right for your investment goals and risk tolerance.

Get Free Gold IRA Kit.

Subscribe to our Newsletter

Get updates on new Gold IRA posts, market news, and more.