Is Investing In Gold IRA Inflation Proof? (2023 Update)

May 16, 2023


You’ve read the news. According to the Wall Street Journal, inflation hit a four-decade high of 9.1%. Inflation doesn’t just affect your buying power, but can seriously erode your bond- and stock-backed investments and savings (which are inherently dollar-backed).

If you’re wondering, “Is investing in gold IRA inflation-proof?” Well, Your Gold IRA Guide has some great news for you.

These days, investors are looking for many ways to diversify their portfolio. That is why many are choosing to go with gold IRAs. But, is this the right move?

Why is investing in gold a good move? Are gold IRAs really invulnerable to inflation and other economic problems? Your Gold IRA Guide is here to answer your questions. Read on to learn more!

Outlook On Gold


For nearly 3,000 years, humans have recognized gold as an easily transferable currency. Different from other metals such as silver and bronze, gold became a measure of money, status, and power.

On the other hand, gold is also beneficial for economic purposes. A long time ago, gold was used as a form of currency. Nowadays, gold holds a similar function in the society, especially in investments.

Apart from these factors, the interest of many individuals revolves around gold's capacity to become a hedge against inflation. For that, gold IRA (individual retirement accounts) are becoming increasingly common.

So, what is a gold IRA, exactly? A gold investment retirement account is a type of a self-directed IRA that focuses on using precious metals as assets. These often include gold and silver, but can also include precious metals such as palladium. There are some important differences when comparing gold- and dollar-backed IRAs, but these have more in common that you likely realize.

Later on in this article we will explore these comparisons and also tackle the question of why and how gold IRAs are inflation-proof.

Background and Benefits of Gold IRAs

Did you know that a gold IRA allows pre-tax contributions? What’s more, gains from investments are tax-deferred. Limitations and policies between the two types of investment retirement accounts are also identical.

Gold IRAs use non-traditional assets (gold). While not nearly as popular as other assets, such as stocks and bonds, gold IRAs do offer distinct benefits.

It’s important to note that the gold that upholds gold IRAs must be stored with a secure and approved depository partner. This means you cannot hold physical gold at your home, safety deposit box or other facility.

Since gold IRAs are held in another facility, it’s unsurprising that they are a number of scams involving gold IRAs you will want to avoid.

Some of the best benefits of having an investment retirement account that is backed by gold include:

  • Diversifies portfolio
  • Value will continue to increase as supply decreases
  • Intrinsic value will always be maintained
  • Protects investments from deflation
  • Hedge against inflation

Gold IRA companies, such as Goldco, are vocal when it comes to these benefits. We will be talking more about the last benefit.

What is Inflation and What Causes It?

We all know inflation is not good for most types of investment, but what is inflation and what causes it?

Inflation is defined as the "decline of of purchasing power of currency over time". In simpler terms, the money you have today cannot buy the same amount of goods in the future.

Consequently, inflation rate is not increasing at a steady rate. Favorable situations will cause the rate to decrease. Nevertheless, more factors contribute to the inflation rate going up at a slow rate.

Some of these contributors are as follows

  • Power of individual currency
  • Market movement
  • Supply chain disruptions
  • government policies
  • Government policies and regulations

As the rate of inflation rises, your personal buying power also goes down. Because of this, it’s recommended to buy gold from bullion dealers when the rate of inflation rate is stable and steady.

With all of this mind, let’s answer the main question: Are gold IRAs really inflation-proof or not?

The Truth About Gold IRAs

As we previously stated, gold can be a currency substitute. This is especially helpful when the currency of a country begins to lose its value. Moreover, gold, with its intrinsic value, is touted as a hedge against inflation.

Gold is an investment and physical asset, but it can also be used to purchase goods and services. And, while many experts rightfully believe that gold is a strong asset to have, it’s not the best investment. Since gold is a strategic investment, many investors refer to it ”as an asset without utility,” meaning it will not gain nor lose value – even in the long run.

Another thing to keep in mind: With the increase in inflation, banks will also increase their rates in order to shore up institutional stability. Under this scenario, gold IRAs will neither benefit nor suffer.

While holding onto gold is always a good thing in terms of creating a hedge against inflation, there are other assets that will increase in value concurrently with the rate of inflation.


So, if you’re wondering, “Is investing in gold IRA inflation proof?” the answer would have to be an unequivocal “YES!”

It is an asset that will always retain a majority of its value, ensuring it is a solid hedge against inflation. Gold IRAs can be a great way to protect your financial future, especially with all the risks of inflation and the current geopolitical climate.

If your aim is to diversity your investment portfolio and protect yourself from market volatility, then a gold IRA might be the best option for you. If you do plan to invest in gold, we highly recommend August Precious Metals. They have an incredible 4.9- out of 5-star rating through Google reviews, a 5-star rating through TrustLink and an A+ rating through the Better Business Bureau.

Have questions about investing in gold? Call Your Gold IRA Guide today at 1-855-444-7022 for advice from the experts.

Thank you for reading our article on how to inflation-proof your investment portfolio with gold IRAs. Feel free to share any comments, questions, or suggestions in the field below.

Anis is a digital marketing expert that enjoys writing blogs and helping people avoid scams online; he is passionate about investing in real estate and gold; in his free time, Anis loves playing football, going to the gym, and hanging out with friends.

By the way, if you are tired of scams and want to invest with a legit gold company, check out my 6 top legit gold IRA companies of 2024!


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