Let’s be real — inflation is not the most glamorous topic. But if you’ve seen your grocery bill increasing or gas costs swinging like a pendulum, then you’ve experienced it for yourself.

Now, here’s where it gets really interesting: Inflation doesn’t only affect day-to-day costs — it also has quite an impact on the price of gold as well as silver. If you’re planning on investing in precious metals (or already have), knowing this can serve you incredibly well in making better decisions.

We’re at AU Bullion, committed to making things simple and ensuring our clients are one step ahead. Let’s keep it real in terms that make sense.

First Things First: What Is Inflation, Anyway

Inflation is essentially what happens when your money doesn’t do as much as it used to. That $5 coffee that cost $3 a few years ago? Prices creep up over time, and unless your income increases with it, your money doesn’t go as far as it used to.

A bit of inflation is inevitable. However, once it begins growing rapidly, individuals — and especially investors — seek means of safeguarding their hard-saved funds.

So, why do individuals purchase gold and silver during times of increasing inflation?

Because gold and silver have real, lasting value.

While money loses value in times of high inflation, precious metals remain firm — sometimes even increasing in value. That’s why they are referred to as an “inflation hedge”. It is impossible to print additional gold or silver like you can with money, so they are regarded as safer in times of uncertainty.

That is how it typically goes:

Gold enjoys turmoil. If inflation increases, rates fall, or currencies stall, gold tends to rise in price. It is invested in because it is regarded as having safe value storage capabilities.

Silver runs along with it — but it is prone to mood swings. It does as well in inflation, but it can be moody about it. It is not only a precious metal, but it is utilized for electronics, solar panels, and other applications as well. Therefore, its price can be influenced in multiple ways.

Recent Inflation Spikes: What Went Down

Remember 2020–2022? There was a global pandemic, everybody had stimulus checks, and rates were at historic lows. Inflation came on the heels of that, and what did gold do? It skyrocketed, breaking higher above $2,000 USD per ounce.

Silver did some significant things as well. It is exactly what precious metals do as inflation begins rising.

Why it is important to you

Inflation is not just something you read in the news – it hits your wallet. If you are saving, inflation gradually devours it. Investing in silver and gold, however? That is one step in front of the game.

Even having just an allocation of your investment portfolio in precious metals can serve as your safety net. It’s not about making it grow, it’s about keeping your wealth intact.

AU Bullion Makes It Simple

We’re here for you whether you’re just starting out as an investor or are an experienced stacker. At AU Bullion, you can buy a vast array of gold bullion as well as silver bullion – ranging from coins and bars to Monster Boxes – at some of the most competitive rates in Canada as well as the U.S.

We are also pleased to answer your questions, guide you through your choices, and ensure that you are receiving the maximum value for your investment. No high-pressure sales tactics, just sound advice and high-quality metals.

Concluding Remarks 

Inflation is the one you can’t manage – but you can manage your response to it. Valuable metals such as gold and silver have weathered the passage of time and remain an optimal choice for preserving wealth in times of uncertainty. So, if you are experiencing the squeeze and are seeking protection for your future, perhaps this is the right moment for you to consider investing in gold and silver. Begin stacking with conviction – visit AU Bullion today.