Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Inflation hedge
1. Inflation Hedge
Gold is true insurance against a crisis- an inflation hedge. Gold maintains its purchasing power when
paper currencies fail. Gold protects those who own it from the sudden, unforeseen consequences of
inflation, when paper currencies fail- it’s an inflation hedge. We've all heard the horror stories of
Germany in the 1920's or Zimbabwe more recently; paper money lost value by the minute and prices
were completely unpredictable. A loaf of bread today might be four times as expensive tomorrow. Gold
maintains its purchasing power throughout time- a.k.a. gold is an inflation hedge! Gold cannot be
printed by governments so its value cannot be watered down like paper currency which can be printed
infinitely. People in Germany burned cash to stay warm because it was cheaper than buying firewood.
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