Ive heard that gold is a good inflation hedge. What does this mean?
Unlike paper currenciessuch as the U.S. dollargold and other precious metals are superior long-term stores of wealth because of their inherent scarcity and utility as commodities. During periods of heavy inflation, many investors grow alarmed by the currency debasement and move their wealth out of paper currencies and into tangible assets, particularly gold. This trend, which can be self-reinforcing, is the reason gold prices often rise faster than the prices of other goods during inflationary times, hence providing an effective hedge.