{"id":21324,"date":"2017-04-20T09:42:14","date_gmt":"2017-04-20T16:42:14","guid":{"rendered":"https:\/\/goldco.com\/?p=21324"},"modified":"2026-01-04T15:22:11","modified_gmt":"2026-01-04T23:22:11","slug":"inflation-effects-on-your-portfolio","status":"publish","type":"post","link":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/","title":{"rendered":"Inflation and Its Effects on Your Portfolio"},"content":{"rendered":"

Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. Many people don’t understand fully how inflation works, so it\u2019s often ignored. However, when a portfolio doesn’t get sufficient return, it can wind up being worth substantially less than you think in actual terms, making it important to pay attention to pressures like inflation.<\/span><\/p>\n

U.S. Inflation’s 2 Percent Zone<\/strong><\/h3>\n

The Fed usually aims to keep inflation to <\/span>approximately 2 percent<\/span><\/a>. This figure is deemed to be the right amount to encourage spending while also encouraging people to save sufficient amounts to plan ahead. It also doesn\u2019t put too much strain on the national economy, as businesses can afford the associated interest rates.<\/span><\/p>\n

If the inflation rate was higher, the public would not be able to make appropriate long-term economic and financial decisions. On the other hand, an even lower inflation rate could mean that wages and prices start falling, signs of weak economic conditions.<\/span><\/p>\n

Essentially, 2 percent inflation is in the Goldilocks zone \u2014 not too much, not too little.<\/span><\/p>\n

But 2 percent inflation means that for every thousand dollars that you have invested, it\u2019s worth $20 less each year. After 10 years, $1,000 becomes worth only $817 (actual value) if interest is not received.<\/span><\/p>\n

Dramatic Impact of Excessive Inflation<\/strong><\/h3>\n

Over the past decade, <\/span>inflation has varied widely<\/span><\/a> from 3.8 percent to -0.4 percent. Indeed, looking back at the past century, inflation has been as high as 18 percent and as low as -10.5 percent. However, such inflation represents extreme situations caused by intense economic pressures both at home and abroad. In the financial uncertainty surrounding the 80s and early 90s, inflation hit 13.5 percent in 1980 and spent almost every year well above the 2 percent figure.<\/span><\/p>\n

In this case, it\u2019s unlikely that interest rates would be able to keep up, and there will be no point in saving money if it\u2019s only going to lose value \u2014 at 10 percent inflation, a $1,000 cash savings would be worth $349 after 10 years. At that point, it\u2019s difficult for businesses to expand and plan ahead, as nobody can really keep sufficient cash reserves in order to expand or even pay employees.<\/span><\/p>\n

Gold, on the other hand, has intrinsic value, and because it\u2019s universally desirable, it tends to maintain its actual value despite inflation. Its value is essentially a strange amalgamation of multiple currencies and the current desire for gold and its rarity. For example, if inflation is out of control, gold is useful because its value can be measured through another currency, resulting in a sort of stability.<\/span><\/p>\n

Although investors can lose out to inflation, a well-balanced portfolio compensates by hedging against sudden shocks and having a variety of investment vehicles so that all situations are covered. Gold and other precious metals are must-have assets to ensure that coverage.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. Many people don’t understand fully how inflation works, so it\u2019s often ignored. However, when a portfolio doesn’t get sufficient return, it can wind up being worth substantially less than you think in actual terms, making it important to pay attention to pressures like inflation.<\/p>\n","protected":false},"author":13,"featured_media":32456,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[207],"tags":[],"class_list":["post-21324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"yoast_head":"\nInflation and Its Effects on Your Portfolio<\/title>\n<meta name=\"description\" content=\"Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. How can you protect yourself today?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inflation and Its Effects on Your Portfolio – Goldco\" \/>\n<meta property=\"og:description\" content=\"Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. How can you protect yourself today?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/\" \/>\n<meta property=\"og:site_name\" content=\"Goldco\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldcopreciousmetals\" \/>\n<meta property=\"article:published_time\" content=\"2017-04-20T16:42:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-04T23:22:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Homepage-1200x630-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul-Martin Foss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:site\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul-Martin Foss\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/\"},\"author\":{\"name\":\"Paul-Martin Foss\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\"},\"headline\":\"Inflation and Its Effects on Your Portfolio\",\"datePublished\":\"2017-04-20T16:42:14+00:00\",\"dateModified\":\"2026-01-04T23:22:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/\"},\"wordCount\":474,\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg\",\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/\",\"url\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/\",\"name\":\"Inflation and Its Effects on Your Portfolio\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg\",\"datePublished\":\"2017-04-20T16:42:14+00:00\",\"dateModified\":\"2026-01-04T23:22:11+00:00\",\"description\":\"Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. How can you protect yourself today?\",\"breadcrumb\":{\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg\",\"width\":855,\"height\":570},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldco.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Inflation and Its Effects on Your Portfolio\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldco.com\/#website\",\"url\":\"https:\/\/goldco.com\/\",\"name\":\"Goldco\",\"description\":\"Top Rated Gold & Silver IRA Company\",\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldco.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/goldco.com\/#organization\",\"name\":\"Goldco Precious Metals\",\"url\":\"https:\/\/goldco.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"width\":220,\"height\":101,\"caption\":\"Goldco Precious Metals\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/goldcopreciousmetals\",\"https:\/\/x.com\/GoldcoPM\",\"https:\/\/www.instagram.com\/goldcopm\",\"https:\/\/www.linkedin.com\/in\/goldcopreciousmetals\",\"https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\",\"name\":\"Paul-Martin Foss\",\"url\":\"https:\/\/goldco.com\/author\/paul-martin-foss\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Inflation and Its Effects on Your Portfolio","description":"Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. How can you protect yourself today?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/","og_locale":"en_US","og_type":"article","og_title":"Inflation and Its Effects on Your Portfolio – Goldco","og_description":"Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. How can you protect yourself today?","og_url":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/","og_site_name":"Goldco","article_publisher":"https:\/\/www.facebook.com\/goldcopreciousmetals","article_published_time":"2017-04-20T16:42:14+00:00","article_modified_time":"2026-01-04T23:22:11+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Homepage-1200x630-1.jpg","type":"image\/jpeg"}],"author":"Paul-Martin Foss","twitter_card":"summary_large_image","twitter_creator":"@GoldcoPM","twitter_site":"@GoldcoPM","twitter_misc":{"Written by":"Paul-Martin Foss","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#article","isPartOf":{"@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/"},"author":{"name":"Paul-Martin Foss","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada"},"headline":"Inflation and Its Effects on Your Portfolio","datePublished":"2017-04-20T16:42:14+00:00","dateModified":"2026-01-04T23:22:11+00:00","mainEntityOfPage":{"@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/"},"wordCount":474,"publisher":{"@id":"https:\/\/goldco.com\/#organization"},"image":{"@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg","articleSection":["Economy"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/","url":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/","name":"Inflation and Its Effects on Your Portfolio","isPartOf":{"@id":"https:\/\/goldco.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage"},"image":{"@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg","datePublished":"2017-04-20T16:42:14+00:00","dateModified":"2026-01-04T23:22:11+00:00","description":"Inflation is a major drain on investment portfolios \u2014 and indeed, almost any other financial product. How can you protect yourself today?","breadcrumb":{"@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#primaryimage","url":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Nest-Egg-855x570-1.jpg","width":855,"height":570},{"@type":"BreadcrumbList","@id":"https:\/\/goldco.com\/inflation-effects-on-your-portfolio\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldco.com\/"},{"@type":"ListItem","position":2,"name":"Inflation and Its Effects on Your Portfolio"}]},{"@type":"WebSite","@id":"https:\/\/goldco.com\/#website","url":"https:\/\/goldco.com\/","name":"Goldco","description":"Top Rated Gold & Silver IRA Company","publisher":{"@id":"https:\/\/goldco.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldco.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/goldco.com\/#organization","name":"Goldco Precious Metals","url":"https:\/\/goldco.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/","url":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","width":220,"height":101,"caption":"Goldco Precious Metals"},"image":{"@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/goldcopreciousmetals","https:\/\/x.com\/GoldcoPM","https:\/\/www.instagram.com\/goldcopm","https:\/\/www.linkedin.com\/in\/goldcopreciousmetals","https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/"]},{"@type":"Person","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada","name":"Paul-Martin Foss","url":"https:\/\/goldco.com\/author\/paul-martin-foss\/"}]}},"_links":{"self":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/21324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/comments?post=21324"}],"version-history":[{"count":0,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/21324\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media\/32456"}],"wp:attachment":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media?parent=21324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/categories?post=21324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/tags?post=21324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}