Gold Versus the Dollar in High-Inflation Times

In the era of inflation, gold proves to be an economically sound investment.  In 1922, six cents had the same buying power as one dollar.  Inflation rates are expected to increase as consumer prices are on the rise and the US dollar depreciates faster than many other foreign currencies.  Since 1933, the dollar has lost nearly all of its value.  

The economic history of the US reflects the dollar’s fluctuating inflation rates.  With the COVID-19 pandemic shutting down the upward economic trends of the 2010s, the runaway inflation rates suggest that one dollar in 2020 will equal 65 cents in 2030.  Gold, on the other hand, will undergo a 42,956 percent increase in value from the 1920s to the 2030s.  This is almost double the inflated costs of a new car or yearly college tuition over the same period.

Harry Browne, an American writer, politician, and investment advisor, states, “When paper money systems begin to crack at the seams, the run to gold could be explosive.”  The lower risks associated with investing in gold explain this prediction. Moreover, gold provides tangible ownership, nearly guaranteed increasing value, high yield return than a traditional savings account, and a strong demand even in economic strife.

In An Era Of Inflation, Gold Still Reigns Supreme
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