The US Fed is printing massive amounts of money and shows no signs of stopping. In fact, for 30 years up to 2008, the entire money supply grew at an annual rate of 3%.<\/p>\n
However, since 2008, the supply of money has grown at an annual rate of 10% \u2013 that’s more than triple the annual rate prior.<\/p>\n
2008 was supposed to be an anomaly \u2013 the first-ever trillion-dollar deficit \u2013 as a result of the financial crisis, but in 2020 the USD ran its first-ever multi-trillion dollar deficit.<\/em><\/p>\n The dollar has lost 96% of its real value, where the equivalent purchasing power of $1.00 in 1940 is just $0.04 in 2020.<\/span><\/p>\n That\u2019s a major decrease, and it will only continue to fall as the increasing money supply gives rise to inflation \u2013 which is being jump-started by the response to the COVID 19 crisis so far, even without a \u201csecond wave.\u201d <\/span><\/p>\n The rand has also depreciated by roughly 40% to the dollar over the last 10-years, so as a South African holding rands, you can now understand why you feel so poor relative to the Americans and Europeans.<\/span><\/p>\n While the buying power of the dollar and rand falls, the price of an ounce of gold has risen from $240 in 1970, to a new high of $1,815 in 2020 – a 650% increase.\u00a0<\/span><\/p>\n Gold is scarce, and less than 2% of gold\u2019s total value is extracted from the earth every year. So when more paper money is printed relative to how much gold is mined, each ounce of gold becomes more valuable in USD or ZAR terms.<\/span><\/p>\n This is why gold broke an all-time high of $1,815\/ounce\u00a0on Wednesday.\u00a0<\/span><\/p>\n Worries over surging COVID-19 cases and the increased likelihood of stimulus cash injection measures from the world\u2019s central banks – known as quantitative easing – have lifted demand for the safe-haven metal.<\/span><\/p>\n Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.<\/p>\n Analysts are predicting that gold will break its $1,921 all-time high reached in September 2011 and believe it will rally well into 2021.<\/span><\/p>\n Analysts at Citi Bank are expecting gold\u2019s price to surpass $2,000 in 2021, while Goldman Sachs\u2019 projections suggest the precious metal will reach $2,000 an ounce even sooner.<\/p>\n So, if you are planning to hedge your bets against the dollar or rand, physical gold is a great place to start.<\/span><\/p>\n Revix<\/b><\/a>, the investment platform backed by JSE-listed Sabvest, offers a simple and cost-effective way to invest in gold.<\/p>\n Through Paxos Gold – a regulated and insured tokenised commodity – you can invest in gold with as little as R500 and not have to worry about the custody and insurance burdens of physical ownership. <\/span><\/p>\n One PAX Gold token is backed by one fine troy ounce of the highest quality gold stored in high-security, fully insured vaults and you can sell your gold investment whenever you choose – whether that\u2019s in a couple of hours or many years\u2019 time.<\/span><\/p>\nWhat does this mean?<\/b><\/h3>\n
It\u2019s time to invest in gold<\/b><\/h3>\n
Why?<\/b><\/h3>\n
Gold is set to break its all-time high<\/b><\/h3>\n
\n
\n