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5 Things You Can Do Now to Prepare for Rising Inflation
Gold: No matter what, it's worth something
By John Waggoner, USA TODAY
Gold: No matter what, it’s worth something
Paper money may lose its value, but gold is always worth something. The problem: The price of gold isn’t tied terribly tightly to inflation.
For example, the price of gold has barely budged since its 1981 high of $850 an ounce. On the other hand, gold has doubled the past five years, a period of tame inflation. “Gold has been a terrible proxy for inflation since 1981,” says Ray Ferrara, a financial planner in Clearwater, Fla.
One reason: Gold prices move opposite the value of the U.S. dollar, rather than tracking inflation. But if inflation does roar, the value of the dollar will fall, too. After all, if a dollar buys less at home, it will be worth less abroad.
Tips:
•Buy gold bullion coins, such as the American Eagle or Canadian Maple Leaf. Take possession of the coins. Scammers love to pretend to store them for you.
•Consider a gold bullion exchange traded fund, such as the SPDR Gold Shares ETF (GLD). Each share equals one-tenth of an ounce of gold, minus the fund’s expenses.
