Gold vs Inflation. Why is it profitable to invest in gold?

Gold vs Inflation. Why is it profitable to invest in gold?


Gold is known as "hard currency" because it is one of the fundamental values of mankind. Over the last 50 years it stopped being 100% secured by any currency, but it has not lost its position as an investment but on the contrary has strengthened it.

The main rule: why gold is not afraid of inflation.

The inflation rate of any currency is gradually growing. Anyway, currencies and inflation are affected by many factors ranging from global disasters and military conflicts to the level of oil production or rare minerals.

Unlike other investments which are strictly tied to the money supply, gold and inflation are inversely related: when inflation rises, the price of gold does not go down; on the contrary, it goes up.

To take a simple example: if you compare the price of gold to the price of a bottle of Coca-Cola, in 1970 a bottle of Coca-Cola only cost 5 cents. Today it costs $2.75. In other words, the price has risen 5.5 times because of inflation. Gold in 1970 was $250 an ounce, whereas in 2021 the current value is $1,782. So, its value has gone up 7 times. Significant, isn't it?

Many investment assets suffer from inflation: real estate, oil, even the notorious cryptocurrency, which are all tied to money. And only gold remains a stable asset worth adding to your investment portfolio.

Why is gold considered so safe?

  • Gold is a highly demanded resource. Even if you don't want to keep your savings in the precious metal, it can always be sold. Gold is in demand in dentistry, jewelry, precision engineering, and electronics. And since gold reserves are far from limitless, having it in your pocket is always prospective.
  • Gold is the main guarantee resource for any economy. That is why all central banks prefer to hold gold reserves as insurance for their national economies.
  • Gold is a convenient asset, which can be kept at home or in a bank. It can be made into a profitable way of saving for future generations.
  • Gold pricing has not dropped. It has remained stable with minor fluctuations for several decades. Today gold is going through a "Restoration Era" due to the global crisis and pandemic.

Investing money in gold is not about buying another pair of earrings or necklaces. Such investments are rather doubtful and first of all expensive, because you will have to pay not only for the precious metal by its weight, but also for the work of the designer, jeweler, and seller of jewelry. Instead, it is much more profitable to invest your money in pure metal ingots right away - you can always convert them into currency, transfer them for creating the same jewelry, or open a deposit account in gold at the bank.

Golden Way company will help you start investing in gold on the most beneficial terms. We produce the bullions ourselves, we mine the gold and sell it, which means you will work directly with the manufacturer, and not with dealers with an additional fee for their services. But the most important thing we offer our partners is knowledge. We saved up priceless experience in operations with gold and investing in this asset which we are ready to share with anyone who decides to start cooperation with our company. Absolute support, leadership programs, assistance in starting an investment career and, of course, gold of the highest standard which you can own - all this we offer exclusively to you.