Is Investing In Gold IRA Inflation Proof? (2022 Update)

June 2, 2022


Hello and welcome to my article entitled 'Is Investing In Gold IRA Inflation Proof?'

Investors are looking for many ways to diversify their portfolio. Hence, many choose to have gold IRAs. However, is investing in gold IRA inflation proof?

Why is investing in gold a good move? Are Gold IRAs really invulnerable to inflation and other economic problems? Questions like these will be answered in this good read.

Without further ado, let us get this article started!

Outlook On Gold


Humans, ever since, have been practicing the concept of using gold. Different from other metals such as silver and bronze, gold became a measure of money, position, 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 has its 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 more common.

To further explain, gold IRA is a type of a self-directed IRA that focuses on using precious metals such as gold and silver as assets. Not to mention, it has both similarities and differences compared to the the standard IRA.

The following sections would tackle more about this. Additionally, I will be talking about why gold IRAs are inflation proof.

Background and Benefits of Gold IRAs

In comparison, a gold IRA allows pre-tax contributions. Also, gains from investments are tax-deferred. Limitations and policies between the two types are also identical.

In the case of gold IRAs, it will use non-traditional assets, which are precious metals such as gold. Although not nearly as popular as other assets such as stocks and bonds, gold IRAs offer distinct benefits.

Furthermore, your gold will be in the hands of a secure depository partner. It is worth to note that gold being used as part of an IRA cannot be stored at home!

There are many similar type of scams involving gold IRAs that you want to avoid!

Some of the benefits that I eloquently boast about regarding gold IRA are the following:

  • 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 Augusta Precious Metals, are vocal when it comes to these benefits. We will be talking more about the last benefit. 

Inflation - What Is 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 and regulations

As inflation rate continues to go up, the buying power of a currency will go down. Buying gold from bullion dealers when inflation rate is not on an all-time high is generally recommended.

The question that arises now is if gold IRAs are really inflation proof or not.

The Truth About Gold IRAs

As stated, gold can be a substitute currency especially if the currency of a certain nation starts to love its value. Moreover, gold is touted as a hedge against inflation.

Being a physical asset, gold can be utilized as something that can buy goods or services. Many countries and experts believe that gold is a strong asset to have.

Even so, it is a not the perfect hedge. A better term for it would be strategic. Investors are referring to gold as an asset without utility. Meaning, it will not gain nor lose something even in the long run.

Another point to be taken seriously is that as inflation rate increases, backs will also increase their rates. This is part of their policy to maintain stability of the institution.

With this, gold IRAs will not benefit nor suffer from any circumstances. Holding on to gold might be good, but there are other assets that will appreciate its value as rate increases.


To conclude this 'Is Investing In Gold IRA Inflation Proof?', the answer would be yes. It is a longstanding asset that is good hedge against inflation. After all, this is one of its strongest suits.

Needless to say, its becomes a better hedge if its held for relatively longer period. Gold IRAs can be a good way to protect your financial future especially with the risks of inflation and geopolitical problems.

Nevertheless, it is not the perfect one. Rather, investing in gold IRA can be referred to as strategic. Should inflation rates continue to go up, gold is not necessarily affected in any way.

In all honesty, shrewd investors should be able to discern when to hold or bow down from gold. Construct alternative plans and other alternatives. You must be able to look further than short-term goals.

But, if your aim is to diversify your portfolio as well as protect yourself from any volatility of the market, then gold IRA is for you. If you are investing in gold, conduct business with Augusta Precious Metals.

My gratitude extends toward you for reading this article of mine. Any comments, questions, or suggestions are deeply appreciated. Do leave them in the section below.

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