The relationship between gold and inflation is particularly important. In times of high inflation, in fact, a significant increase in gold prices is usually observed, but this correlation is not always valid and not for all inflation values. In any case, however, gold represents a good defense in inflationary periods, since in the face of a decrease in the purchasing power of money, gold is the perfect way to preserve one’s wealth.
Now, there are 2 ways to buy gold:
– buy companies that mine and trade physical gold
Royal gold does not only deal with that, but with various precious metals.
I purchased in early January and added on Friday with an average price of $ 106.21.
The inflation to the top since 1982, the Ukrainian crisis, a further reversal of the market even at double-digit percentage is not at all impossible, for this reason it is necessary to cover ourselves and if we do not want to do it with leveraged contracts, we must use shares or ETCs that they replicate the trend of the futures (and even there they are hedged for the long term).
My hope is that if there is to be a crash, it will be fast, a nice V-shape as seen around the time of the first wave of COVID-19. We must instead hope that we will not have a 2008, because those are the worst years for the stock market.
For the rest, for those who follow me, I have accumulated in the long-term portfolio, on the S & P500 ETF, AMZN, FB, ABNB and AAPL.
On Meta, I will do a separate study, but obviously, for those who, like me, believe in the company and in the metaverse, this could be a great shopping period!
DISCLAIMER: I am not a financial advisor nor a CPA . These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.