PDSnet Glossary

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Definition

Any tangible or hard asset which can be used to protect the investor against depreciation in the value of paper currencies. Gold and other precious metals are typically the most popular hedges against inflation and this causes these metals to be closely related to the level of world inflation - the higher the rate of inflation, the higher the gold price. A word of caution - this does not refer to inflation in SA, but rather to inflation in America and the western world generally.

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