Can buying gold fight inflation? Is gold inflation resistant?

There is a saying in the West: 100 years ago, one ounce of ** could buy a decent suit, and more than 100 years later, one ounce** can still buy a similar suit, which shows that ** is very valuable! In fact, from 1990 to the present, **** has only doubled, pork ** has risen 7 times in the same period, and housing prices in Beijing have increased 34 times.

**Can be inflation-resistant. However, if you use physical ** to fight inflation, it requires a large amount of funds, and the procedures are more troublesome.

Another way to combat inflation is to keep earning money. Recommend international spot** investment.

International spot ** investment is relatively simple, that is, through the international market.

On the fluctuations in the price of gold to earn a profit difference. Let's say the **** now.

It's $880 ounces, you have a lot, and when you sell it when it rises to $890 ounces, then your profit is $10 ounces * 100 ounces * HKD dollar exchange rate.

It is fixed at all times), which means that you can get a profit of HK$7,800.

Features of International Spot**:

1.Two-way trading, both slag and short, flexible trading.

2.In the global market, the dealer is not easy to control, and there is no black village phenomenon.

Trading hours, 24 hours trading.

4.There is no limit to the rise and fall, and the profit margin is large.

5.The margin system gives small and medium-sized investors who have the strength and willingness to make a lot of money.

6.Risk control.

We see that those speculators who buy in large quantities and the aunts who are crazy about buying ** in turmoil regard ** as a wealth password. But in fact, behind the skyrocketing**, ** can neither hedge nor really resist inflation. Even many times, investing brings you more risk.

Buy the real ** this is not insurance, remember the Chinese aunt, **** can indeed maintain and increase the value, but buy it at home is not as fast as the spot speculation income.

Buy** can resist inflation, buy in kind**, and the **price after a few years is the market purchase price of the day.

It is currently in the period of inflation, and the current situation is moderate inflation, which will help the market economy to a certain extent. Of course, you can do any of them, but if you have enough money, you can buy a house. But if you can, you can buy gold.

At present, the management is suppressing the method. The situation is uncertain. Gold generally increases with the cost of living.

** Can resist inflation, but can also create inflation It is necessary to maintain a steady growth rate in order for the economy to be stable

Most people think that it can combat the risk of inflation, but historically this has not been the case. It is only when there is short-term hyperinflation that it can be combated against inflation.

In 1980, the price of gold** had fallen to US$850 per ounce, and by near 2000 it had fallen to a trough of US$252 per ounce. However, on the eve of the financial crisis on March 14, 2008, it climbed all the way above $1,000, and fell below the $800 mark again half a year later. Statistics show that comparing the international gold price with the inflation rate of the United States, assuming that investors are held at four points in time and until now, investors have underperformed CPI for most of the period.

The reasons behind this are as follows: ** is no longer the basic anchor of currency issuance, but just a hedging tool. ** It does not generate interest or dividends, there is no compound interest, and it does not bring the expected annualized expected return, and it is only worth when most investors think it is valuable.

When value is most generated, when short-term hyperinflation, when the value of all assets is re-washed and paper money depreciates significantly, it is necessary to preserve the value of the entire asset portfolio, and it becomes the best choice.

**It has always been regarded by investors as the best choice to fight inflation, because the currency depreciation, **** will rise sharply, and at the same time, when there is a risk in the international or domestic economy, buy a little**, you can preserve the value of assets.

The purchasing power of a country's currency is determined based on the price index. When a country's prices are stable, the more stable the purchasing power of its currency becomes. Conversely, the higher the inflation rate, the weaker the purchasing power of the currency, and the less attractive it becomes.

If the price index in the United States and major parts of the world remains stable, the value of cash holdings will not depreciate, and there will be interest income, which will inevitably become the first choice for investors.

Conversely, if inflation is rampant, there is no guarantee of holding cash at all, and the collection of interest cannot keep up with the surge in prices. People will buy and hold because their purchasing power will remain stable for a long time, and demand will rise due to the effect of substitution of paper money, and the theory will be inflationary.

For example, compared to other financial assets, sometimes the anti-inflation effect of ** is not very good.

For example, domestic real estate. The National Commercial Housing 100 Cities ** Index was selected as the target (due to data defects), from 9042** in June 2010 to 12938 in November 2016, an increase of 43%. During the same period, London gold rose from to.

U.S. CPI cumulative gains.

and ** index, represented by the US S&P 500 index, which has risen much more than CPI and ** in some cycles.

1. Is it inflation-resistant?For a long time, ** has been used by investors as the best hedge against inflation. On the whole, if the long-term forest holds, ** can indeed resist inflation to a certain extent; But in the short term, ****.

will be subject to effective interest rates.

impact fluctuates. II. ****(Gold) is a elemental form of the chemical element gold (AU), which is a soft, gold-yellow, corrosion-resistant ***. Gold is one of the rarer, more precious, and most valued metals.

Internationally, it is generally ** in ounces.

As a unit, in ancient China, "two" was used as the first unit, which is a very important metal. It is not only a special currency for reserves and investment, but also an important material for the jewelry industry, electronics industry, modern communications, aerospace industry and other sectors.

As of October 12, 2021, **** $1760 ounces. Third, the factors that affect the ****Before the 70s of the 20th century, **** was basically owned by the banks of various countries.

Decision, the international **** is relatively stable. In the early 70s, **** was no longer directly linked to the US dollar, **** gradually marketized, and the factors affecting **** changes were increasing, specifically, it can be divided into the following aspects:

1. Supply factors.

1) The best stock on the planet.

2) Annual supply and demand.

and 3) the cost of mining a new gold mine.

4) ** Political, military, and economic changes in the producing countries.

5) Central banks. The ** sell-off.

2. Demand factors.

1) ** Changes in actual demand (jewellery, industry, etc.).

2) The need to preserve value.

3) Speculative demand.

3. Other factors.

1) The impact of the US dollar exchange rate.

2) Monetary policy of various countries.

Closely related to international ****.

and 3) the impact of inflation on the price of gold.

4) International, fiscal, and external debt deficits.

Impact on the price of gold.

5) International political turmoil, wars, terrorist incidents, etc.

6) The impact of **** on the price of gold.

7) Oil**.