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5 reasons to invest in gold amid rising inflation
While inflation is down from its peak of 9.1% in June 2022, it appears that the inflationary issues we’ve been facing since the pandemic aren’t over just yet. According to the latest inflation report, released on Wednesday, the inflation rate was 3.5% in March, up by about 0.3% compared to the month prior. That means inflation is still well above the Fed’s 2% target rate — and the effects are still having a detrimental impact on many people’s finances.
But inflationary issues don’t just impact the cost of consumer goods and services. Inflation can also negatively affect the value of your investments, which is why many investors are wondering what steps to take right now to protect their hard-earned wealth. And, the good news is that adding certain investments to your portfolio can help shield you from the corrosive effects of inflation.
For example, one asset that has historically performed well during periods of high inflation is gold. There are a few compelling reasons why you should consider adding gold to your investment mix to help safeguard your money right now.
Explore your top gold investing options online today.
5 reasons to invest in gold amid rising inflation
Here are five reasons you may want to invest in gold now that inflation is headed back up:
Gold is a proven hedge against inflation
Throughout history, gold has consistently demonstrated its ability to hold its value and even increase in price during times of high inflation. This is because gold is a tangible, physical asset that is not subject to the same erosion in purchasing power as paper currencies.
As the prices of goods and services rise due to inflation, the real value of cash holdings tends to decline. But gold, which cannot be printed or diluted like paper money, retains its intrinsic worth. This makes it an attractive option for investors looking to preserve the purchasing power of their wealth.
Find out more about how gold investing could be the right move for your portfolio.
Gold provides portfolio diversification
Diversification is a key principle of sound investing, as it helps to reduce risk and smooth out volatility in your portfolio. And, gold is an asset that has a low correlation to many traditional asset classes, such as stocks and bonds. This means that when other investments are facing a downturn, gold can act as a stabilizing force and help offset losses.
By allocating a portion of your portfolio to gold, you can create a more well-rounded and resilient investment mix that is better equipped to weather various economic conditions, including periods of high inflation. And, by investing in gold now, you can reap these benefits at a time when inflation is ticking back up.
Gold is a safe-haven asset
In times of economic uncertainty and market turbulence, investors often flock to safe-haven assets like gold. This is because gold is widely perceived as a reliable store of value, a characteristic that becomes increasingly valuable when other assets are experiencing volatility or downturns.
And, while we aren’t experiencing much market turbulence at the moment, gold can still come in handy. After all, there’s a lot of uncertainty about the future of the interest rate environment, and during periods of high inflation like the one we’re facing now, gold’s status as a safe-haven asset still makes it a sought-after investment. This increased demand can drive up the price of gold, as we’ve seen in recent weeks, providing investors with the potential for capital appreciation.
Gold is a finite resource
Unlike fiat currencies, which can be endlessly printed by central banks, the supply of gold is limited. This scarcity factor is another reason why gold can hold its value during periods of high inflation. As the demand for gold rises, its price is more likely to increase, as the physical supply cannot be easily expanded to meet the growing demand. This finite nature of gold also makes it a more reliable and tangible asset compared to paper money.
Gold offers physical ownership
Another unique advantage of investing in gold is the ability to take physical possession of the asset. Unlike stocks, bonds or many other financial instruments, gold can be held in the form of gold coins and bars or gold collectibles and jewelry. This physical ownership can provide a sense of security and control for investors. And, by having gold in your possession, you have a tangible asset that is not subject to the same risks as many other investments.
The bottom line
As inflation continues to erode the purchasing power of cash and other traditional assets, investing in gold can be a prudent strategy to protect your wealth. Between its proven track record as a hedge against inflation, the diversification benefits it offers, its safe-haven status and the finite supply, gold can be a smart addition to a well-diversified investment portfolio. But, as with any financial decision you make, be sure to consider all of the factors and make sure investing in gold while inflation is high is the right move for you.
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New documentary explores the private life of “Superman” icon Christopher Reeve
Long before comic book characters dominated movie screens, actor Christopher Reeve made the world believes in superheroes with the 1978 classic “Superman.”
Reeve died in 2004, nearly a decade after an accident re-shaped his life. “Super/Man: The Christopher Reeve Story” is using interviews with family and friends and never-before-seen home videos to explore his real-life heroism.
Reeve started his career on the stage, studying at the prestigious Juilliard School and living with comedian Robin Williams. The pair had a friendship that was “more like a brotherhood,” said Reeve’s son Matthew. Reeve was in awe of Williams’ energy and versatility, Matthew Reeve said, but audiences quickly clued into Reeve’s own star power when he took on the role of the Man of Steel.
To his children, though, he “was just dad,” Matthew Reeve said. The documentary explores how Matthew Reeve and his sister Alexandra Reeve Givens grew up watching their dad take the stage as Superman. “Super/Man” also reveals their heartbreak over their parents’ breakup and the joy they found when Reeve re-married. He tied the knot with Dana Reeve in 1992, and the pair welcomed another child, William Reeve, later that year.
“Dana was sunshine,” Alexandra Reeve Givens recalled. “She just brought joy with her wherever she was and could find it even in the darkest moments.”
Those dark moments came suddenly, when in 1995, a near-fatal horseback riding accident left Reeve paralyzed from the neck down. The documentary allows viewers to see, for the first time, what went on out of the public’s view. Reeve can be heard talking about how he “ruined (his) life and everybody else’s,” but in a touching moment, old friend Robin Williams is seen visiting him in the hospital.
“Robin showed him ‘Hey, you’re still you,'” Alexandra Reeve Givens said. “‘You still have this foundation of friendship and people around you, who adore you. And you’re going to find those fun moments in life again.'”
That support from friends and family re-ignited Reeve’s legacy of activism. He made appearances at the Democratic National Convention and the 68th Academy Awards in 1996, about a year after the accident. Matthew Reeve said watching his father address his industry peers at the Oscars was “one of (his) most proud moments.”
“It was just a production for him to get out of bed every morning, let alone get across the country and go out in public for the first time,” Matthew Reeve said. “It was a big deal. It was a big deal to him, but it was also a big deal to the entire disability community. We stayed up in London till like three in the morning to watch that live. It’s a fond memory.”
Reeve also went on to launch what would become the Christopher and Dana Reeve Foundation, which is dedicated to advancing research into spiral cord injury and help individuals and families impacted by paralysis. It was his dad’s mission to find a cure, Matthew Reeve said, while his stepmother wanted to focus on improving the lives of paralyzed people and their families. The foundation and Reeve’s platform helped bring unprecedented attention and funding to spinal cord injury research.
Reeve even kept acting and realized his lifelong dream of directing with the 1997 HBO movie “In the Gloaming.” Reeve died in 2004 from heart failure at 52.
“There is a huge amount of great actors and actresses out there, where their filmography might be amazing and what they achieve on a cultural level might be amazing, but have they actually achieved anything really as a human that moves the needle for our society?” said filmmaker Ian Bonhote, who made the documentary with Peter Ettedgui. “And Chris has done both things.”
“Super/Man: The Christopher Reeve Story” will open in theaters on Friday, Oct. 11.
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