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“Chart Of The Century” Gives Valuable Insight Into Cost of Living and Inflation

A chart from economist Mark Perry, creator of the Carpe Diem blog, has been making the rounds on Twitter lately and is being hailed as “stunning” and “one of the most important charts about the economy this century”.

The chart examines the change in prices of various US Consumer goods, services, and wages over the past two decades.  Seen below, it shows how the price of consumer goods with strong foreign competition, such as TVs and toys, have plummeted while the cost of domestic services like healthcare and college tuition skyrocketed.

It helps pinpoint the reasons for the recent increase in market volatility, which some have blamed on inflation and rising wages.

The graphic, which has made the rounds at the Federal Reserve, also hints at the effects of the possible reversal of globalization in the world economy, including higher inflation and increased price of goods.  “We would have fewer choices, potentially less quality, less productivity and higher prices if we reverse globalization,” said Timothy Adams, President of the Institute of International Finance, when discussing the chart’s implications.

It remains to be seen what the long term effects of the current trade tariffs will be, as they are designed to break down trade barriers, not create new ones.  Regardless, globalization has generally had a deflationary effect on free economies such as the U.S. and U.K. where competition comes from lower-cost foreign companies.

The Federal Reserve has indicated that they’ll consider a rise in the price of goods as a temporary outcome, and intend to focus more on growth than inflation.

Now is the time to protect yourself from any uncertainty in the markets by investing in Gold.  Take advantage of the sustained growth in the Gold markets while providing a safe haven for your assets.  Don’t miss out on this opportunity. Act now and reap the benefits.

Fill out the form below or click here now to get your free, no-obligation Gold IRA rollover kit from the nation’s most experienced and proven Gold retirement company— the award winning Regal Assets.

The post “Chart Of The Century” Gives Valuable Insight Into Cost of Living and Inflation appeared first on Regal Assets.

Why Is Gold A Good Investment

Investors can invest in gold through exchange-traded funds (ETFs), buying stock in gold miners and related companies, and buying physical product. These investors have as many reasons for investing in the metal as they do methods to make those investments. Some argue that gold is a barbaric relic that holds the past's monetary qualities.

They contend that the only benefit of gold is the fact that it is. On the opposite end of the spectrum are those that assert gold is an asset with different qualities that make it essential and unique for investors to maintain their portfolios.

While gold's history started in 3000 B.C, when the ancient Egyptians began forming jewelry, it wasn't until 560 B.C. that gold began to act as a currency. At that time, merchants wanted to create a standardized and transferable kind of money that would simplify commerce. The creation of a gold coin stamped with a seal seemed to be the answer, as gold jewelry was already widely accepted and recognized throughout various corners of the planet.

Finally, gold represented wealth throughout Europe, Asia, Africa, and the Americas.

How To Buy Gold Investment

Had to be backed by either silver or gold. For instance, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins which were used as money simply represented the gold (or silver) which was presently deposited at the bank. However, this gold standard didn't last forever.

In 1913, the Federal Reserve was created and started issuing promissory notes (the present day version of our paper money) that could be redeemed in gold on demand. The Gold Reserve Act of 1934 gave the U.S. government title to all the gold coins in circulation and put an end to the minting of any new gold coins.

Gold in the Modern Economy Even though gold no longer backs the U.S. dollar (or other worldwide currencies for that matter), it still conveys importance in today's society. It is still important to the global market.

Presently, these organizations are responsible for holding approximately one-fifth of the planet's supply of above-ground gold. Many central banks have added to their gold reserves that were present, reflecting concerns about the global economy. Gold Preserves Wealth The reasons for gold's importance in the modern economy centers on the fact that it has successfully preserved wealth throughout centuries.

How To Sell Gold In Black Desert Online Investment Back

To put things into perspective, consider the following example. They both would buy the things to you, like a brand new business suit or fancy bike.

In summary, you'd have lost a significant amount of your wealth in the event that you decided to hold the $35 compared to the one ounce of gold since the value of gold has increased, while the value of a dollar has been eroded by inflation. Gold as a Hedge Against the Dollar The idea that gold maintains wealth is even more important in an economic environment where investors are facing a declining U.S.

Historically, gold has served as a hedge against both of these scenarios. With inflation, gold typically appreciates. When investors realize that their money is losing value, they will start positioning their investments in a hard asset which has traditionally maintained its worth. The 1970s present a prime example of rising gold prices in the midst of inflation.

There are two reasons for this relationship. First, investors that are looking at purchasing gold (i.e., central banks) must sell their U.S. dollars to make this transaction.

How To Get Into Gold Investment

This leads to greater demand from investors that hold currencies that have appreciated relative to the U.S. dollar. Gold as a Safe Haven Whether it is the tensions in the Middle East, Africa or elsewhere, it's becoming increasingly obvious that political and economic uncertainty is another reality of our contemporary economic environment.

Why is this , history is full of collapsing empires, political coups, and the collapse of currencies. Consequently, whenever there are news events which hint at some kind of economic uncertainty, investors will buy gold as a safe haven.

It is clear that gold has historically served as an investment which can add a diversifying part to your portfolio, regardless of whether you're concerned about inflation, a declining U.S. dollar, or perhaps protecting your wealth. If your focus is diversification, gold is not correlated to stocks, bonds, and real estate.

Gold stocks generally rise and fall with the price of gold, but there are well-managed mining companies that are profitable when the price of gold is down. Increases in the price of gold are magnified in gold stock prices. A relatively small gain in the purchase price of gold may lead to significant gains from the best gold stocks and owners of gold stocks typically acquire a higher return on investment (ROI) than owners of physical gold.

Gold Investment How

Stocks that pay dividends tend to show higher gains once the industry is rising and fare better on average, almost twice as well than non-dividend-paying stocks when the general sector is in a downturn. The Gold Mining Sector The mining sector, which includes companies that extract gold, can experience high volatility.

Factors like the company's history of paying dividends and the sustainability of its dividend payout ratio are two important elements to examine from the company's balance sheet and other financial statements. A company's ability to sustain healthy dividend payouts is greatly enhanced if it has always low debt levels and strong cash flows, and the historical trend of the provider's performance shows steadily improving debt and cash flow figures.

Different methods for Owning Gold One of the main differences between investing in gold several hundred years ago and now is that there are a lot more investment options, such as: Gold Futures Gold Coins Gold Companies Gold ETFs Gold Mutual Funds Gold Bullion Gold Jewelry A Bad Time to Invest in Gold In order to determine the investment merits of gold, let us assess its performance against that of the S&P 500 for the past 10 decades.

Having said that, gold trounced the S&P 500 in the 10-year period from November 2002 to October 2012, with a total price appreciation of 441.5 percent, or 18.4% yearly.

Why Gold Is A Bad Investment

The point here is that gold is not always a great investment. The ideal time to invest in any asset is the asset is cheap, providing substantial potential as it returns to prefer, as indicated previously and when there is opinion. The Bottom Line There are both advantages and disadvantages to each investment.

If you believe gold could be a safe bet against inflation, investing in coins, bullion, or jewelry are avenues that you can take to prosperity. Lastly, if your main interest is in using leverage to gain from rising gold prices, the futures market may be your answer, but note that there is a fair amount of risk associated with any leverage-based holdings.

Investors can invest in gold through exchange-traded funds (ETFs), buying stock in gold miners and related companies, and purchasing physical product. These investors have as many reasons for investing in the metal as they do methods to make those investments. Some argue that gold is a barbaric relic that retains the qualities of the past.

They assert that the only advantage of gold is the fact that it is. On the opposite end of the spectrum are those that assert gold is an asset with various qualities which make it unique and essential for investors to hold in their portfolios.

Gold Investment How

While gold's history began in 3000 B.C, once the ancient Egyptians began forming jewelry, it wasn't until 560 B.C. that gold started to act as a currency. At that moment, merchants wanted to create transferable and a standardized kind of money that would simplify trade. The creation of a coin seemed to be the answer, as gold jewelry has been widely accepted and recognized throughout corners of the earth.

The British pound (symbolizing a pound of sterling silver), shillings and pence were based on the amount of gold (or silver) that it represented. Finally, gold symbolized wealth throughout the Americas, and Europe, Asia, Africa. The U.S. Bimetallic Standard The U.S. government continued with this gold convention by establishing a bimetallic standard in 1792.

Had to be backed by gold or silver. By way of instance, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins which were used as money only represented the gold (or silver) which was presently deposited at the bank. But this standard did not last forever.

In 1913, the Federal Reserve was created and started issuing promissory notes (the current day version of our paper money) that could be redeemed in gold on demand. The Gold Reserve Act of 1934 gave the U.S. government title to all the gold coins in circulation and put a stop to the minting of any new gold coins.

How To Buy Gold As An Investment

The U.S. abandoned the gold standard in 1971 when its currency ceased to be backed by gold. Gold at the Modern Economy Even though gold no longer backs the U.S. dollar (or other worldwide currencies for that matter), it still carries importance in today's society. It is still important to the economy.

Presently, these organizations are responsible for holding roughly one-fifth of the world's supply of gold that is above-ground. In addition, many central banks have added to their gold reserves, reflecting concerns about the economy. Gold Preserves Wealth The reasons for gold's importance in the economy centers on the fact that wealth has been preserved by it .

To put things into perspective, consider the following example. Let's say that at that time, you keeping the $35 or just had a choice of either holding an ounce. You would be both bought the things by them, like a brand new business suit or fancy bicycle.

In summary, you would have lost a significant amount of your wealth if you opted to hold the $35 as opposed to the one ounce of gold since the value of gold has increased, while the value of a dollar has been eroded by inflation. Gold as a Hedge Against the Dollar The idea that gold preserves wealth is much more important in an economic environment where investors are facing a declining U.S.

How To Get Into Gold Investment

Gold has served as a hedge against both of these scenarios. With rising inflation, gold typically appreciates. When investors realize that their money is losing value, they will start positioning their investments. The 1970s present a prime example of gold prices in the midst of inflation.

First, investors who are looking at buying gold (i.e., central banks) must sell their U.S. dollars to make this transaction.

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