Evaluating Gold as an Investment

Contrary to popular belief, gold may not be an effective hedge against inflation, as historical data reveals that gold prices often rise in anticipation of inflation but do not deliver satisfactory real returns when inflation occurs. The volatility of gold, which fluctuates significantly compared to relatively stable inflation rates, further undermines its reliability as a secure investment. Moreover, turning to gold as a barrier against currency collapse highlights the challenges, since there is currently no viable substitute for the U.S. dollar as a global reserve currency. Rather than investing in gold out of fear, it is essential for investors to focus on a well-thought-out financial strategy that aligns with their long-term goals and considers the potential opportunity costs associated with holding non-yielding assets.