Can Gold Protect Against Inflation and Market Volatility?

Can Gold Protect Against Inflation and Market Volatility?

People are turning to gold as inflation is on the rise and the market is stuck in the aftermath of a massive market correction that created an international stir. But is gold really a safe bet?

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Gold has long been known as a stable investment option when the market falls and when inflation rises, and by the looks of it, the precious metal is crawling back into the spotlight.

A combination of worries created from the price correction we just experienced to the rising inflation in the United States has sparked a newfound interest in gold. People are simply looking for stable alternatives to place their money in to protect from future turmoil.

In addition, the middle class in Asia is gaining more spending money, and according to Chris Gaffney at EverBank World Markets they are looking to buy gold. “We are seeing a burgeoning middle class and more disposable income in India and China, which should lead to more physical demand,” he told CNBC.

Gaffney also added, “we think it’s a good time to own the precious metals.”

Should you invest in gold?

As the Federal Reserve is planning several rate increases for 2018 and inflation is said to increase it might very well be a good time to buy some gold. In the past, gold has been able to flourish during high inflation.

In fact, even if you don’t live in the United States, chances are that you can be affected by the country’s inflation.

Also, during this past market correction that brought the Dow Jones and S&P 500 down to record lows, gold was surging and it has kept performing well since, proving that gold and other metals often aren’t affected by the regular market turmoil.

Whether or not you should invest in gold is up to you but if you plan to do so we suggest you look into the following options:

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