Gold and inflation: when gold shines

Gold is often called an inflation hedge. The reality is more nuanced: over very long periods gold roughly holds purchasing power, but over years it can lag inflation badly – or race ahead for reasons unrelated to it.

Follow the live price: gold (and silver, platinum).

What gold does and doesn’t do

• Does: offer a store of value uncorrelated with stocks in some crises.
• Doesn’t: pay any dividend or interest – it just sits there.
• Test what inflation does to cash over time in the inflation calculator.

A small allocation can steady a portfolio; treated as a get-rich bet, gold usually disappoints.

Information only, not investment advice.