Nasdaq: Will Inflation Buoy Gold Prices While the Federal Reserve is on Hold?
Article by David Becker in Nasdaq
Are you considering an investment in gold? Gold has always been viewed as an asset that you can use to diversify your portfolio. When stock prices tumbled during the beginning of the great recession, gold prices rallied. Did you know that when the S&P 500 dropped 50% between December of 2007 and April of 2009, gold prices rallied 10%?
The question is whether we are currently at an inflection point where it is prudent to purchase gold.
Gold is viewed as both a commodity and a currency. It is defined as a precious metal, along with silver, platinum, and palladium. Some view gold as a hard asset that increases in value as inflation rises. Others view gold as a currency, that is quoted versus the US dollar. The reality is that gold is both. As a currency, it is viewed as a safe haven especially when other currencies become less attractive.
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