Image source: Getty Images. One of the most consistent things we have seen throughout history is people’s reliance on gold during bear market environments. The rare yellow metal has a long-standing reputation as a reliable hedge against inflationary environments. It makes sense for people to flock toward gold when markets become uncertain. Gold prices typically tend to rise when the broader economy is weak. Only in that sense does gold appear to have been assigned a practical purpose for investors. Gold has increased considerably over the last century, and the dollar’s value has declined. Considering its long-term appreciation throughout history, it has become a default hedge against inflation. But is gold really the best way to protect your capital against inflation? Another commodity, black gold, has performed well in recent history. Crude oil outperformed many other asset classes. Companies with operations involving the energy sector also outperformed the broader market for the most part over the last year. Is oil a stronger bet as an inflation hedge than gold? Let’s discuss the case for both commodities. Gold as an inflation hedge The strongest argument for gold as an inflation hedge is its role as a possible alternative to fiat […]
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