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Is Purchasing Gold a Wise Decision in Times of High Inflation? | Will the Stock Markets Witness a Downturn in High Inflation? | Harsh Goela's Analysis

Inflation is the rate at which the general price level of goods and services is rising, meaning that the purchasing power of money decreases. This is a very important concept that must be understood. People often think that inflation is the same as the money supply, but this is not true. The money supply is the amount of money in circulation, but inflation is the increase in the price of goods and services. This is a fundamental concept that you should know. Inflation is one of the most important economic concepts to learn about. And it has a lot of important implications for the way that you manage your personal finances. In this video, you will find everything about Gold, Crash, Inflation, and more. 1:09 What Is the Biggest Misconception Around Gold? 4:14 What is Reason For Low Gold Demand From the West? 6:53 What is the Relation Between Gold and Inflation? 10:35 Can High Inflation Rates in USA Help Rupee To Regain Value? 15:01 Why Should I Invest in Gold? 18:08 What is Pr...

How Good is Gold as an Inflation Hedge Asset ?

Hedging is a risk management strategy that is aimed at protecting investments. The technique is used to mitigate various risks and to avoid the potential negative impacts. The practice doesn’t prevent the investments from suffering losses. It only offsets the risk of losses from other assets.  The rise in the cost of goods and services over a period of time defines inflation, which is the expansion in the money supply in an economy. As a result of inflation, a higher amount of money competes for the same amount of goods and services, thus cranking up the prices. Gold is widely used as a hedge against inflation. During economic crises, gold acts as a hedging asset capable of absorbing shocks in the bond, oil, and equity markets. The yellow metal is considered as a safe haven investment for preserving wealth over generations. Investment in gold in the form of exchange-traded funds (ETFs), which hold the metal and issue shares that speculators can trade, is another factor dri...