Inflation is often closely linked to a political, economic or health crisis, such as the one we are currently experiencing.

It is therefore important to know that when inflation occurs, currencies lose value rapidly.

The real return on your investments during inflation

In fact, the real return on an investment is calculated from the difference between the nominal return and the inflation during that period. So, when you calculate the return on your various investments and savings, you should always use the real return. For example, if a savings account pays 1% per year and inflation is 0.5%, its real return will be 0.5%.

This is why many investors have already turned to gold. Although your gold bars and coins will not earn you any return during the time they are held, their value is considered to be permanent when they are resold, depending on the price of gold, which fluctuates but has an upward trend. To support this, this graph showing the price of gold over the last 20 years:

Gold, a refuge against inflation

Gold, unlike banknotes and due to its quality as a raw material, cannot be reproduced ad infinitum at the request of a king or a national bank. Its stock is limited even if it is not yet fully exploited.

In fact, almost 190,000 tonnes of gold have been extracted since the beginning of humanity and it is estimated that there are still 50,000 tonnes left in the ground. That is about 25 years of production based on current yields.

The safe-haven quality of gold is therefore no longer in question. And all the more so when a political or economic crisis is looming!