Gold's Value as an Inflation Hedge Under Scrutiny

Gold has experienced significant growth in recent years, prompting investors to wonder if it's still worth investing in. To answer this question, Jean Chatzky spoke with Meghan Pinchuk, Chief Investment Officer and Partner at Morton Wealth.

Pinchuk explained that gold is often misunderstood as an inflation hedge. Instead, she said it protects against the decline of paper currency value. 'Gold can't be printed,' Pinchuk noted, 'so you don't have this unlimited supply of them… It's truly against the dollar.'

When it comes to investing in gold, there are three main approaches: physical bars, ETFs (Exchange-Traded Funds), and mining stocks. Physical gold offers direct ownership but comes with storage costs. Gold ETFs provide price exposure, but investors should consider how the manager holds the gold. Mining stocks offer a leveraged play on gold's performance.

Pinchuk recommends a simple approach for most investors: investing in straight gold. 'I think that is an easier one to stomach… If someone likes to be more opportunistic, I would say you could mix the miners in.' She suggests allocating 5-10% of a portfolio towards gold, with some targeting around 10%

,