How Inflation affect the Price of Gold and Silver

in LeoFinance5 months ago (edited)

Inflation is a term which refers to a general increase in prices and fall in the purchasing power of money. The price of gold moves up and down with inflation rates. Inflation can benefit gold owners if it leads to higher prices for the metal, but it can also hurt them if it leads to lower prices.

It is usually measured by a country's consumer price index. Inflation has a negative effect on the value of gold and silver coins because it reduces their buying power. However, there are some advantages to investing in gold or silver coins during inflation periods. For example, they can be used as an investment vehicle to hedge against inflation risks or as a store of value when paper currency becomes unstable.

Some disadvantages of investing in gold or silver coin include lack of liquidity, difficulty in transporting them, and high premiums over spot price for bullion coins. Inflation is a measure of how much the price level of goods and services is rising or falling over time.

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Inflation is a major concern for investors because it erodes the purchasing power of investments over time. Investors need to be aware of how inflation will affect their investment portfolio in order to make sound financial decisions. It is an economic measure of how quickly the general level of prices for goods and services rises in an economy.

The price of gold and silver coins have been on a steady rise since 2008. The price has gone up by more than 100% since 2008. This is because inflation has been increasing, which means that people need more money to buy the same amount of stuff as before. Inflation is an economic term that describes the general rise in prices of goods and services over time. It is calculated as the percentage change in a price index from one year to the next.

The two most popular precious metals are gold and silver, which are used in coin bars, coins, and jewelry. The price of these precious metals fluctuate with many factors such as inflation, market demand, and investor sentiment. The value of gold and silver can be influenced by inflation because they are typically considered a hedge against inflation-related losses. Inflation is a rise in the general level of prices, or equivalently, a fall in the purchasing power of money. A related concept is deflation, which is a decrease in the general level of prices.

Inflation also means that your money will not be worth as much. This can be seen by looking at how much gold and silver coins are being sold for on the market. If you go to eBay and search for gold coins, you'll find that they are selling for anywhere from $10-$300 per coin depending on what type you want to buy. However if you go to eBay and search for silver coins, they are selling for anywhere from $3-$10 per coin depending on what type you want to buy.

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Nobody who has a working brain would buy gold or silver on eBay, its a perfect way of being scammed.
Also, the prices you quote have nothing to do with reality. There is no such measure as "depending what coin you want". Coins are measured by weight, with the standard size usually being 1 oz fine metal (.999 minimum).
A 1 oz silver coin currently sells for 25-30$ US (higher prices are for coins with collector value, which is irrelevant in this context), and 1 oz gold coins for about 1750$ US.
Those prices are based on the COMEX exchange prices, plus manufacuring of the coin and profits for the vendor.
It has to be said that the current situation regarding the COMEX prices has no relation to reality, when we look at the inflationary developement in the USA or in Europe, or most other important economies in the world. In many countries inflation is sky rocketing, especially in the energy sector. Increases in fuel prices of 30, 40 or 50% are nothing unusual in many countries. The metal prices however have even lost a few % since the start of the Ukraine war. This is only possible because the COMEX prices are based on speculation with derivative papers - basically pieces of paper saying "gold" on them. Actual physical metal is not needed for such trades. That has already been the case for several decades already, and has heavily distorted metal prices since.

Well some people still fall for it and still buy stuff on eBay so. Well it is luck stuff I presume

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