If you’re worried about inflation eating away at your savings, you’re definitely not alone.
With everything getting more expensive these days, it’s natural to wonder how to keep your hard-earned money from losing its value over time.
Gold is on people’s minds for good reason. Think about it – while the dollar in your savings account buys less and less each year (the dollar has actually lost over 98% of its purchasing power since 1913), gold has generally moved in the opposite direction.
Remember the 1970s’ inflation crisis? While regular savers watched their money lose value, gold prices shot up by over 2,300%. That’s not to say history always repeats itself exactly, but it does tend to rhyme.
What makes gold different? Unlike dollars, euros, or any other currency that central banks can print more of when they want to, nobody can just create more gold out of thin air. There’s only so much of it to go around, and that scarcity is a big part of why it’s held value for literally thousands of years across virtually every civilization.
If you’re thinking about protecting your retirement savings specifically, you might want to look into Gold IRAs. They let you hold actual physical precious metals while still getting the tax advantages of a retirement account.
Just keep in mind that, like with any asset, there are pros and cons to consider. If you’re curious about the full picture beyond just inflation protection, check out our article on the pros and cons of a Gold IRA.