Did you know that in 2021 alone, the US dollar depreciated 16% compared to the Mexican peso, 12% compared to the Canadian dollar, and 9% compared to the Euro? This is caused in part by the mass printing of paper money which causes it to lose its value as well as the high rates of inflation that the country has experienced the past few years.
Inflation is not expected to slow down in coming years, and so the US dollar is expected to only continue depreciating over time. In fact, runaway inflation rates suggest $1 in 2020 will only equal about $.65 in 2030. While paper money loses its value, investors tend to turn to gold because it does not lose its value due to inflation or over printing. Since 1933, the dollar has lost 99% of its value against gold.
The reason why gold has continued to hold its value while the dollar depreciates, is due to its lower risk than other investments and the fact that it has a set value on the earth. Gold can not lose value to overprinting, and so as more investors turn to it, it only increases in value over time. In the 2008-2012 recession gold saw an over 100% surge in interest. To learn more about how gold is withstanding inflation rates, take a look at the infographic below:
Brought to you by: usgoldbureau.com