Will United Kingdom cost of living crisis and inflation affect Gold investors?
Savvy investors are fully aware that markets simply go up or down, very rarely does a particular market, bond, commodity or security forever go up in a straight positive line correlation or stabilise for many years.
Gold has historically been a good hedge against inflation and after the 2008 recession gold rallied strongly for years afterwards.
In this blog, we’re not giving financial or investing advice but giving a slight insight into the total global economical viewpoint.
Inflation is expected to be around for a few years so identifying what is next as a culture is difficult however thinking about historical trends is important for consumers, corporations or investors to gain clarity within confusing times.
The 2008 property crash resulted in a heavy global recession, as a result of excessive greed & many financially burnt dot com investors realised there was safety in mortgage investments in 2000-2008 until the global property bubble burst.
Many investors within the property market or stock market are referring to the 2022 inflation rises to hurt both renters & consumers so as an investor who has liquidity it may make better sense to hedge against inflation & steer clear of being fully invested in stocks that may have peaked in recent years.
Let’s flesh this out a bit, this next potential 18 month United Kingdom recession is looming later 2022 due to excessive money printing, overloaded public purses whilst on furlough & free monies handed out like free sweets to children. The UK government are keenly & firmly wanting their pound of flesh back in their idea of raising taxes, stealth taxation whilst allowing inflation to soar hurting consumers.
Rumours from favourable global economists average between 12-18% inflation with a feeling of 1970s recession extremes taking back many United Kingdom citizens many decades in financial losses.
So why consider investing in gold during difficult times?
Many investors choose to spread their financial portfolio subject to their risk appetite. Owning physical gold means at some point you can exchange the precious metal very quickly for your chosen currency at any given time. Physical saleable asset ownership is very often part of any wise investors portfolio.
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Please note this article is not intended to be used as financial or investment advice.