The number one Hedge against dollar inflation is the silver and gold. To hedge against inflation means that purchasing a product whose value will be stored or either goes up while the value of your currency is decreasing. Such assets are like land, oil, gold and silver. In the whole world, Gold is measured as a safe and a premier monetary it’s pricing is comparative to geopolitical tensions, war, and financial chaos. The weakening dollar is forming a lot of tension to people internationally especially in China, India, and the Middle East
When you consider the current market, you will realize that gold and silver and other commodities that you can touch tend to raise their value together they differ from paper financial assets. Whenever paper financial assets have a lot of stock the prices of gold remains constant but when the stock is flat the rate of other commodities rises very much. People usually have a trend they leave the other financial assets until their relationship is fair. People say that they would rather protect than speculate.
For the last six years, the value of gold has risen roughly about 158%, and also that of silver has increased a bit stronger about 246%, on the other hand, the value of the dollar has fallen by 32%. If you compare the value of a dollar today and a couple of years ago it worth’s only 1cent. When you compare in the years of 1919, it worth 2 cents. There are many drops in the value of the dollar this drop has been for a long time.
In the US they are now running a total yearly budget and trade debts exceeding $1.5trillion, the Federal Reserve are making in year 1-2 trillion Dollar liquidity all these out of thin air.
Due to the latest decline of dollar Large Dollar holders have started exiting it and in the past the dollar was very powerful everything was related to it. All international trade was being conducted with the use of a dollar. But since it started to fall some countries begun to diversify it off from their holders. Now that the value of the dollar has risen and that of gold and silver increased they the latter two moves in an opposite direction with the dollar, and they seem like they are not attached at all. For the last 36 years the value of dollar has dropped by 80%, while that of gold has risen by 1900%.finally we came this brief explanatory that gold is a perfect hedge for the depreciating dollar.