Top 10 Hedges Against Inflation

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Top 10 Hedges Against Inflation


Gold Long before there was a U.S. dollar, there was gold, and it’s gold that everyone goes back to when fiat money loses its strength. Why exactly? Because gold is finite. If you packed all the gold in the world into a cube, it wouldn’t fully cover a tennis court. And that cube is only growing about 1.5 percent in weight every year. Gold acts as a great hedge because investors have few other


Real Estate More than anything else, real estate protects you against inflation rather than helping you to profit from it – particularly when you’ve got a fixed-rate mortgage. If inflation hits hard enough, the bank that’s holding your deed stands to lose money while the relative cost of


Oil The demand for commodities such as oil will dip during inflationary periods but it won’t disappear anytime soon. In fact, demand is rising in developing countries and this bodes well for oil speculators. If you’re new to investing in oil, one of the safest ways to do it is via oil ETFs or via stock in specific oil companies.


Food Food costs rise precipitously when inflation runs rampant because people have to eat. And they’re going to keep paying for food even if they can’t afford much of anything else. Some of the companies best poised to


Foreign Currencies One of the best ways to capitalize on a falling dollar is by parking your cash in another currency. Highly risky, and potentially very rewarding, currency investing isn’t for the unstudied or faint of heart, but there are quite


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REITs A Real Estate Investment Trust is a corporation that invests in real estate, then distributes its income (90 percent by law) to investors in the REIT. REITs hold commercial real estate such as malls and apartments, and


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Inflation-indexed Securities Inflation-indexed bonds and derivatives are pegged to the U.S. government-reported inflation rate. If the rate goes up, so does the return on your bond or derivative. TIPS (or Treasury Inflation-Protected Securities) are


Other Precious Metals Gold isn’t the only metal that outperforms during inflationary periods. In fact, silver’s returns dwarfed gold’s during the inflationary 1970s. And there are even more choices, from platinum to uranium to


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Art The market for fine art has actually performed a bit better than gold since 1997. Based on Mei/Moses Fine Art Index, which tracks auction results, fine art investors have seen nice returns on classic and emerging art. If you


Stocks Investors seem conflicted on whether or not stocks provide a good hedge against inflation. Most studies have tracked major indexes against inflation, and they still find that stocks perform decently during inflationary periods –


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Gold

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Real Estate

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Oil

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Food

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Foreign Currencies

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REITs

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Inflation-indexed Securities

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Other Precious Metals

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Art

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Stocks


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