Inflation is a word that’s been coming up quite a bit recently. It’s a term that seems almost inconsequential, especially with the annual rates almost always being in the single digits. But inflation can have far-reaching consequences for both the average person and the economy as a whole. The inflation rate serves as a gauge of financial stability and economic well-being.
Quite a few market-watchers seem worried about our current inflation rate. But is their worry justified? US Money Reserve has taken a close look at the historical data and our current economy, and they’ve given an explanation of how inflation can affect the average person, and what they can do to outpace it.
All the recent talk of inflation has many people wondering what inflation is, and how it affects them. Inflation, at its core, is simply a measure of how the prices of goods and services around the nation increase over time as the dollar’s purchasing power decreases. If inflation is more than zero percent, which it almost always is, then that means the average price of goods is going up, and you’ll be spending more to get the same things over time. While you’re not likely to see the effects of inflation over months or even a year or two, it can wreak havoc on long-term investments or careers. If, after working somewhere for ten years, your pay hasn’t increased, but inflation has continued to raise the price of goods, then you’ll find it harder to maintain your lifestyle as the years go on. Retirement funds, loans, and savings accounts are all affected by inflation, as well as almost any other investment which is tied to the value of the dollar. If your savings don’t gain interest faster than inflation devalues your money, then you’ll be losing purchasing power over the years. This can be especially disastrous for retirement.
But how can you keep your purchasing power, and stave off the profound effects of inflation on your financial well-being? The key is diversification of your assets. Investing in assets that aren’t tied completely to the value of the dollar will help your money retain its value, or even increase it. Adding assets such as shares in companies with offshore operations or industries with high international stability can help you retain purchasing power even if the dollar loses value. However, one of the best investments for maintaining purchasing power is physical gold. Gold has historically risen in value faster than inflation has dropped the value of the dollar, and has consistently managed to retain its immense value across the world.
US Money Reserve
The leading distributor of government-issue gold, silver, and platinum is US Money Reserve. They’ve helped hundreds of thousands of individuals to outpace inflation by giving them the information and advice they need, as well as providing them with investment opportunities in precious metals, and helping them to protect their money from devaluation. US Money Reserve has a reputation for excellence, and that’s a reputation that they’ve upheld rigorously over their many years in operation.