Savers are increasingly looking to gold as a way to address rising inflation and for a good reason. The Federal Reserve's policies in 2020 have massively expanded the supply of money. And more money could lead to higher prices down the road. In anticipation of this concern, some investors are considering gold investments to hedge, or protect against, higher inflation. But a key question for many investors is whether gold is an appropriate way to protect against rising prices.
Our work suggests that relying on gold to protect your savings against inflation may not be optimal. In fact, a survey of historical financial and economic data suggests that assets like stocks and bonds could be better suited to mitigate inflation. More importantly, a diversified portfolio of stocks and bonds provides the benefits of inflation hedging while reducing overall risk to your savings compared to investing in gold alone.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
