Inflation is one of the most steady and unavoidable economic principles in existence. Prices will always increase with time, the U.S for example has moved from a dollar buying a gallon of milk in 1960 to a dollar not even buying a pack of gum today. What makes inflation scary is when it starts to outpace economic growth, when the wages don’t reflect the prices.

This is what politicians are arguing about day after day in the modern era. 2022 saw the greatest rate of inflation since 1981 at 9.1%. This is an intimidating number as it caused increases in consumer prices that many couldn’t handle. For example, between July 2021 and July 22, food prices increased by 10.9% and energy by 32.9%.

Looking at the gas prices of this era, this was hard to miss, and while this was to the chagrin of many American consumers, prices have been increasing more and more every year for decades. Using 1920 as a starting point and 2030 as a project ending point, college tuition has increased by 25,602%, a new car by 23,815%, milk by 825%, and gold by a whopping 42, 956%.

For some products, such as milk, this has been a slightly more varied and direct climb, although for all the others, the same cannot be said. Gold was fairly steady in its price before a skyrocket in recent years. College tuition has been exponentially rising since around 1970, and the same can be said for the price of a new car.

The time period between 2020 and 2030 is looking to have the most dramatic rates of inflation by far. Starting the decade off with a historically unprecedented pandemic, it’s not hard to see exactly how that became the case. Economic shutdowns followed by cash injections kept the country stable at the expense of what seems to be intense inflation in the upcoming decade. Estimates are saying the dollar of 2030 will be equal to $0.65 in 2020.

While questions around if this should have happened and if it could have been avoided are worthwhile, the fact of the matter is that it did. And although this is certainly a global issue, it has been affecting the U.S more than other countries. In 2021, the U.S dollar depreciated 16% in comparison to the Peso, 12% in comparison to the Canadian dollar, and 9% compared to the pound.

So how are people responding to this economic shift? The answer is as unsatisfying as one would expect, it’s complicated. Many are questioning the average wages that Americans earn as it affords them less and less every year. Many are attempting to abuse the lower value of the dollar for future gain. And many are securing their assets in whatever way they can.

One of the primary ways this has happened is with the increasing popularity of gold. Gold, historically, will rise in times of economic uncertainty. There’s an appeal to its stability and physical nature that the dollar does not possess. Gold holds its value as an extremely stable investment, as it has increased in value year after year.

In 2020 gold investment demand increased by 80% year over year. There is a finite amount of gold on the planet, which ensures that even as inflation rates increase, the price of gold will rise right alongside it. This doesn’t mean that gold is the end-all economic investment for all, or even most. It promotes a less productive and diverse market, but in times of uncertainty, it’s no wonder people gravitate towards it.

<a href="https://www.usgoldbureau.com/gold-still-supreme-during-inflation"><img src="https://www.usgoldbureau.com/media/wysiwyg/in-an-era-of-inflation-gold-still-reigns-supreme.jpg" alt="In An Era Of Inflation, Gold Still Reigns Supreme" width="500" border="0" /></a><br />Brought to you by: <a href="https://www.usgoldbureau.com/">usgoldbureau.com</a>

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