Anytime the dollar starts to rebound the price of gold and precious metals start to fall. The problem is the dollar isn’t on the rebound right now. That means there are plenty of reasons to buy gold right now in 2022. Here are just 4.
Reason #1 – The Dollar Is No Longer On The Rebound.
At one point the dollar was on the rebound for 12 straight months. But oh how things change very quickly. In the last few years the dollar has lost at least 18% of its value. The result has been a rise in inflation and fuel prices. That means gold is America’s sweetheart again and it’s time to buy it. The rebound is just getting started so make sure you get in now.
Reason #2 – Low Supply
The cost of mining outfits has been on the rise for a while now. This is because of two things. Labor expenses and capital. The five major gold producers are currently paying around $1,400 to produce an ounce of gold. That cost is expected to rise to $1,900 an ounce over the next few years. In the next 5 years it is suspected the production of new metal will start to decline. When ever there is low supply the demand shoots up. That’s what makes gold a great investment right now.
Reason #3 – Too Much Paper Money Is Being Printed.
For a variety of different reasons the Federal government is still printing new money on a regular basis. This is never good for the economy. The more money in circulation the more value the dollar loses. That’s why it seems like everything is costing more and more these days. The base money supply used to be $800 billion. Now it is close to $3 trillion. Gold is looked at as a global alternative to paper money such as the dollar. Anytime the central bank prints more money the value of gold goes up.
Reason #4 – Inflation
Been to the gas station lately? Even though prices have dropped a bit they are still very high. Anytime you see less food and higher fuel prices that’s a sign of structural changes going on in the economy. Just think about it. Even rent is on the rise. To make all of this make sense let me put it like this. Currently the core inflation rate is what it was pre-recession. However, the problem is there are still at least 2 million few workers. Does that sound right to you? That’s because its not.
Its not supposed to work that way. Anytime there is more money poured into the economy it creates a short term frenzy on Wall Street. They drive up the bid on certain assets which ultimately causes the cost of living to go up and wages to go down. And the only ones who suffer are those on main street. In other words the little guy. One of the best ways to protect yourself from this type of inflation is to buy gold now!