Gold as an inflation hedge - Australian Resources & Investment

Are you considering investing to buy gold using SMSF and are wondering if it is the right time? With the gold steadily declining, falling by 1.92% in the week to AUD 2,537.09, an ounce of gold could see an increase over the next few months resulting from inflation.

So, what does this mean for you? It means that gold remains a winner in economic chaos. Why? First, the Fed has agreed to slow the rate hike pace. Yet, it remains to have a holistic impact on the inflation data, with interest rates raised by 75 basis points. Hence, they continue to provide insight into their movements to reach a line between containing inflation and not over-tightening monetary policies. 

They will give a clearer picture after holding the Economic Policy Symposium 2022 on 25 to 27 August. In Australia, the unemployment rate has been at a low since 1974. However, there remains considerable financial pressure for most with the persistent inflation and rising cost of living. 

Employment Minister Tony Burke still finds leaks in the IR system providing a sufficient wage increase even with the low employment. Even the Australian Bureau of Statistics reported that the wage growth keeps falling compared to the inflation rate increases. 

For this reason, Australians’ earnings are not matching the rising inflation. Therefore, it is crucial to consider other investment options to hedge existing wealth against the economic climates that are so volatile. 

According to Finder’s Savings, ordinary people save 702 dollars a month. Therefore, the current interest rates can vary between 1.8% to 3.25%, which is low. But, when you compare it to gold, your average return for 15 years will be 14.4, outweighing the current interest rate by 10%. 

Therefore, if you have a Self-Managed Super Fun, now is the time to slowly start buying gold to accumulate it in your funds. The fact is that the returns on gold saver programs are much more than saving money in your bank. 

Hence, you can discuss this with a gold dealer in Melbourne to buy gold bullion from them and have it kept safely in their vault. Then invest in some insurance on your gold to provide it to your SMSF. The important thing is to ensure that the invoice is made to your Self-Managed Super Fun, including the storage and insurance fees. 

But there are other solutions if you want to slowly dedicate money from your super fund instead of using substantial portions of your wealth. We recommend discussing this with a local gold dealer to assist you with an easy process to achieve the best results.  

So, why not contact a dealer today. The gold dealer can assist you with the best information on buying and investing gold in a super fund. The best part is that while the spot gold price is low, it is the best time to invest in gold before it hits a high price for buying. 

As you can see, with the gaps in data in the unemployment sector and interest rate hikes, the cost of living is increasing. Therefore, you need to start saving now, and it is a worthy consideration to save money in your bank and buy gold using SMSF as a safe at the same time. 

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