It’s no secret that inflation levels have been running well below the Fed’s desired target of two percent. Despite stubbornly low inflation levels, the central bank stands ready to hike rates further in 2018, perhaps as many as three times.
Does the central bank know something the rest of us don’t?
While the conspiracy theorists may be disappointed, the answer is probably not. Inflation has remained below desired levels, and it seems to be a thorn in the Fed’s side. Although inflation reports and other data have shown some mild upticks in inflationary pressures, price pressures remain quite subdued.
Or do they…
If you were to take a close look at your monthly expenses, we think you would come to a different conclusion. Are you paying less for gas than you were a year ago? How about groceries-have you noticed a cost savings there? What about health care? How about natural gas or electricity?
If you were to really examine these expenses, which are paid by hundreds of millions of Americans, we suspect that you will not find any substantial reductions. In fact, you may very well find that these costs have climbed over the past year or so.
Guess what: Rising costs of everyday expenditures like those discussed above are a symptom of rising inflation, regardless of what any report says to the contrary. Making ends meet and providing for everyday living costs may very well be more challenging than it was a year ago. As the cost of these expenditures goes up, disposable income and savings may go down.
What about crude oil? Oil has seen a significant rise over the last year, climbing from less than $45 per barrel to over $62 per barrel. Could rising crude oil costs be indicative of inflationary pressures to come? The answer is quite possibly, yes.
Given the amount of quantitative easing seen all over the globe over the last decade combined with the ongoing ultra-low interest rate policies of numerous central banks, inflation could potentially rear its ugly head in the months and years ahead. The question is: will your portfolio be ready?
Now is the time to consider diversifying with asset classes that can potentially provide a hedge against rampant inflation, and physical gold should be at the top of your list.
Gold has been considered a reliable store of wealth and value for centuries, and is often sought out as a means of hedging against rising price pressures and weaker currency values. Gold may potentially hold its value, or even increase in value during periods of inflation.
Adding this key asset class to your portfolio has never been easier than it is today. Speak with an Advantage Gold account executive about the potential benefits of gold ownership today. Our associates are here to answer any questions you may have, and can even show you how to incorporate physical gold into your investment strategy using your IRA account.
Don’t wait for rising inflation to take a big bite out of your purchasing power and returns. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, central bank, gold, inflation, interest rate hike, standard of living