Inflation is an issue that hits a lot closer to home than you might think. It can affect almost every facet of your life. However, many people don’t realize the effect that it can have, as unless it approaches runaway levels, inflation is a slow process. Many people who watch the market have expressed a tinge of worry about the current inflation rate of 2.1 percent. Is their trepidation legitimate? US Money Reserve has taken this as an opportunity to look deeper into inflation, its causes, and the economy as a whole. In addition, they’ve explained how inflation can affect the average person, and what they can do in order to minimize that effect.
The first question that many people have would be “what exactly is inflation, and how does it affect my day-to-day life?” The first part of that question can be answered quite easily. Inflation is a measure of how quickly the economy is shifting, and how quickly goods and services are increasing in value, or, in most cases, how quickly the dollar is decreasing in value. When people talk about the rate of inflation, they’re usually referring to its annual increase in percentage, which represents the average increase of costs for basic goods and services over one year. As long as inflation is above zero percent, then prices are slowly increasing.
How exactly inflation affects you is a more nuanced subject. Inflation can affect you in a number of ways. The most obvious being that, over the years, you’ll be steadily paying more and more for almost all goods and services. This can have quite an effect if you’re working at the same place for many years and if your pay remains the same over a long period. But where inflations really begin to cause problems is with investments. Investments which are tied to the US dollar often decrease in value at the same rate as the dollar and don’t actually protect your value. The same is true of interest. Even if you have a savings account, if your interest isn’t higher than inflation, you’re still losing purchasing power.
So, how can you keep the value of your money, and keep the effects of inflation from de-valuing it? The answer is investment in more diverse assets. Foreign asset classes, and internationally stable assets are strong choices, and can often keep inflation at bay. However, one of the best assets for staving off or even reversing the effects of inflation is physical gold. The value of gold has nearly always increased faster than the rate of inflation, maintaining the value of your money, and allowing you to keep your purchasing power safe.
US Money Reserve
US Money Reserve is an American company, and one of the leading distributors of government-issue precious metal coins. Their mission is to help individuals maintain the value of their wealth by providing the information they need to make informed decisions about precious metal investments. Their reputation for exceptional customer service is unparalleled, and over the years, they’ve helped hundreds of thousands of Americans to make the leap into gold, silver, and even platinum.