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Inflation is rising again: Why you should invest in gold now
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Over the last few months, a prolonged period of cooling inflation helped to ease consumer goods price growth, reducing some of the financial pressure on Americans. However, new inflation data is sparking renewed concerns among investors and consumers alike. According to the latest Consumer Price Index (CPI) data, inflation rose 2.7% on an annual basis in November, marking the second consecutive month of increases.
While this figure remains significantly below the recent peak of 9.1% recorded in June 2022, the upward trend in inflation has raised eyebrows among economic analysts and financial experts alike. After all, this reversal in the disinflation trend suggests that the battle against rising prices may not be over. As a result, it could potentially impact everything from grocery bills to investment portfolios in the months ahead, making it harder for Americans to stay afloat financially.
And, it could also have an impact on investors. Periods of high inflation can negatively impact the value of your investments, which is why investors will often turn to gold to protect their wealth during these periods. The precious metal offers numerous unique characteristics that make it particularly attractive during periods of prolonged inflation — so if you’re looking for ways to protect the value of your investment portfolio, adding gold to the mix could be a smart move right now.
Start protecting your wealth by adding gold to your portfolio.
Why you should invest in gold now that inflation is rising
Here’s why gold investing could be a boon to the value of your portfolio as inflation continues to rise:
It offers unique wealth preservation benefits
The relationship between gold and inflation has been well-documented throughout history. As traditional currencies lose purchasing power during inflationary periods, gold typically maintains its value, making it an attractive option for wealth preservation. This historical pattern is particularly relevant in today’s economic climate, where uncertainty about inflation’s trajectory is growing.
The precious metal’s enduring appeal during inflationary periods stems from its unique characteristics as a tangible asset. Unlike paper currencies, which can be devalued through monetary policy decisions, gold’s inherent scarcity and physical nature make it resistant to the erosive effects of inflation. This quality becomes especially valuable when inflation begins to rise, as we’re witnessing now.
Find out more about how gold investing can benefit you now.
It can be used for strategic portfolio diversification
Another one of gold’s compelling attributes in the current environment is its effectiveness as a portfolio diversification tool. Traditional investment portfolios heavy in stocks and bonds can be vulnerable to inflation’s negative impacts, but gold’s historically low correlation with these conventional assets makes it an excellent hedge, potentially helping to stabilize portfolio returns during periods of market volatility.
Modern portfolio theory emphasizes the importance of diversification and gold’s unique market behavior provides precisely that. As inflation rises, the value of traditional fixed-income investments often declines, while gold frequently moves in the opposite direction, helping to offset potential losses.
It acts as a safe-haven asset
Inflation isn’t the only looming issue right now. The current global economic landscape is characterized by various uncertainties, from geopolitical tensions to monetary policy challenges. In such environments, gold’s reputation as a safe-haven asset becomes particularly valuable. The precious metal has historically performed well during periods of economic stress, serving as a reliable store of value when other assets experience volatility.
The supply and demand dynamics could pay off
The fundamental supply and demand characteristics of gold add another layer to its investment appeal during inflationary periods. Unlike fiat currencies, gold’s supply is naturally limited, and new production is relatively constant. When inflation rises, increased demand for gold as a hedge can lead to price appreciation, potentially benefiting early investors. That’s likely part of why we’re seeing gold’s price recover right now after dipping for a few weeks. More investors are adding it to their portfolios to combat inflation, so the price is increasing in tandem.
Other considerations for investors
While gold presents compelling opportunities in the current economic environment, potential investors should consider a few other factors as well before making their decision. First, unlike stocks or bonds, gold doesn’t generate regular income through dividends or interest payments. Its value appreciation primarily comes from price increases driven by market demand.
Gold prices can also show significant volatility in the short term, influenced by factors such as changes in interest rates, currency fluctuations and geopolitical events. This volatility means investors should view gold as a long-term strategic holding rather than a short-term trading vehicle.
The bottom line
By adding gold to your portfolio, you can not only safeguard your wealth against rising inflation but also bolster your financial resilience in an unpredictable economic landscape. As inflation ticks upward again, now may be the ideal time to consider this time-tested investment.
Ultimately, though, the decision to invest in gold depends on your financial goals, risk appetite and portfolio strategy. Gold’s ability to hedge against inflation, provide diversification and maintain value during economic uncertainties makes it a strong contender for inclusion in many investment plans. However, it’s essential to approach gold investing with a clear understanding of its benefits and limitations.
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Credit card debt has become a critical issue for millions of Americans over the last few years. With credit card interest rates recently hitting a record high of over 23%, carrying a balance has never been more expensive. This issue is being compounded by rising credit card delinquencies and an increasing number of maxed-out accounts, which showcase the financial stress many people are under in today’s economic environment.
That financial burden is growing, too. Right now, cardholders owe a staggering total of $1.17 trillion on their credit cards, up from $1.14 trillion in the second quarter of 2024. That equates to the average cardholder being burdened by $8,000 in outstanding credit card debt — with many owing much more than that on their outstanding balances. These figures highlight the urgent need for cardholders to find effective strategies to tackle their debt.
Debt relief can provide a path forward, but success requires preparation, strategic choices and commitment. Whether you’re exploring debt consolidation, debt settlement or other options, the steps you take now can set the stage for lasting financial freedom.
Find out how the right debt relief experts could help you now.
How to succeed with debt relief
Navigating debt relief takes thoughtful planning and a clear understanding of your options. Here’s how to set yourself up for success during the process:
Understand your debt situation
Before pursuing any debt relief option, take a comprehensive inventory of your financial situation. Calculate your total debt across all accounts, track your monthly income and expenses and determine how much you can realistically afford to pay toward debt each month — as nearly any debt relief option you consider will require you to put at least some money toward what you owe on a monthly basis. This assessment will help you identify which debt relief options are most suitable for your circumstances.
Compare your top debt relief options online here.
Do your homework on your options
Debt relief isn’t a one-size-fits-all solution. Different methods work better depending on your financial situation, so it’s important to fully assess what’s available to you. Here are some of the more common debt relief program options to consider:
Debt consolidation
When consolidating your debt, the goal is to combine multiple high-rate debts into one loan with a lower interest rate, making your payments more manageable. Debt consolidation is typically ideal for those with good credit who can qualify for favorable loan terms on their loans.
Debt management
Offered by credit counseling agencies, a debt management plan involves negotiating lower interest rates and fees while creating a structured repayment plan. This option requires discipline, as it often takes three to five years to complete, but can result in lower payments and a streamlined payoff strategy.
Debt settlement
Debt settlement involves negotiating with your creditors to accept a settlement amount that’s lower than the total amount you owe. In many cases, these kinds of debt relief programs can result in lowering your balance by 30% to 50%, but while it significantly lowers your debt, it may hurt your credit score and come with tax implications. As a result, this option is typically most suitable for those with serious financial hardship (such as divorce, loss of income, medical emergency or a major unexpected expense) who can’t afford full payments.
Bankruptcy
As a last resort, bankruptcy can discharge most unsecured debts, including your credit card debt, wiping the slate clean. However, bankruptcy also has long-term consequences on your credit and finances, so it’s typically best for cardholders who have exhausted all of their other options.
Work with a reputable debt relief professional
If you plan to work with a debt relief company to settle or consolidate your debt, make sure to do thorough research on the companies you’re considering, as the quality of the services can vary — and it’s not uncommon for less reputable debt relief agencies to make unrealistic promises about outcomes.
During this process, it can help to look for companies accredited by the American Association for Debt Resolution (AADR) or the International Association of Professional Debt Arbitrators (IAPDA). You should also check reviews from multiple sources, including the Better Business Bureau and TrustPilot. And be wary of companies that:
- Promise specific debt reduction amounts
- Charge upfront fees before providing services, as it’s illegal to charge fees upfront except for in limited circumstances
- Pressure you to make quick decisions
- Guarantee they can stop all creditor calls or lawsuits
Stay committed to the process
Debt relief is not an overnight solution; it requires time, patience and discipline to achieve. To stay on track, celebrate milestones along the way. Acknowledge even the small victories, such as paying off one account, as these can motivate you to keep going. It’s equally important to avoid accumulating new debt by committing to living within your means and resisting the temptation to use credit cards. Surrounding yourself with a support system, whether it’s friends, family or financial counselors, can also provide encouragement and accountability to help you stay focused on your goals.
Educate yourself for the future
Achieving debt relief is just the beginning; maintaining financial stability requires building healthy habits. Start by improving your financial literacy — learn about budgeting, investing and managing credit effectively. Use credit sparingly and pay off balances in full each month to build a strong credit history. Make sure to also plan for long-term goals, such as retirement, homeownership or other significant milestones, to ensure that you are not only debt-free but also financially secure for the future.
The bottom line
Achieving debt relief is possible, even in today’s challenging economic environment, but you’ll need to put in some work to keep things on track. By understanding your debt, exploring your options and committing to a plan, you can take control of your financial future. Partnering with a reputable debt relief company, creating a realistic budget, and staying disciplined are also key steps toward success.
Most importantly, though, debt relief isn’t just about eliminating debt — it’s about creating a foundation for long-term financial stability. With the right approach, you can turn today’s challenges into tomorrow’s opportunities while regaining peace of mind.
The next members of the California Hall of Fame have been announced – and this time, all of the inductees are women.
California Gov. Gavin Newsom and First Partner Jennifer Siebel Newsom announced the 18th class inductees on Thursday.
TV cooking legend Julia Child, California’s first poet laureate Ina Donna Coolbrith, Olympian Vicki Manalo Draves, civil rights pioneer Mitsuye Endo, civil rights activist Alice Piper, gorilla conservationist Dian Fossey, and singer Tina Turner will be honored.
Introducing the 18th class of the California Hall of Fame!
Since 2006, @CAMuseum has honored 166 Californians for their achievement in the arts, business and labor, food, literature, music, public service, science, and sports. pic.twitter.com/EJqTuZFKbH
— Governor Newsom (@CAgovernor) December 12, 2024
“These trailblazing women have shattered barriers, challenged societal norms, and driven progress that has transformed California and the world,” Siebel Newsom said in a statement.
Unlike in previous years, all of the inductees have since passed.
“This all-female cohort consists of powerful women who remain beloved cultural icons and civil rights luminaries today, truly embodying the California spirit,” Gov. Newsom said in a statement.
Last year’s inductees included former San Francisco Mayor Willie Brown, former Secretary of Defense Leon Panetta, Judge Thelton Henderson, Chef Helene An, basketball star Cheryll Miller, choreographer Brenda Way, father of the internet Vint Cerf, and director Ava Duvernay.
The 2024 induction ceremony is scheduled for Dec. 19 at 6 p.m.
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