Which are the Inflation Proof Assets?
Recently the US Federal Government has printed $ 1.2 Trillion out of thin air only and pushed it into the economy. And that’s why now the Investors all around the world are fearful. Because sooner or later, Hyperinflation will set which will erode the purchasing power of all the reserved money and Cash.
And that’s why Investors worldwide are searching for inflation proof assets. So Here is a List of Inflation proof Assets.
01) Gold – Traditionally Gold has strong negative correlation with the Dollar. So more the US Government prints Money, the Gold price goes higher that much. Since last more than 5 centuries, Gold has beaten the inflation very well. In fact, Gold is the Best Inflation proof asset and a safe heaven for your money.
02) Private Businesses – Yes, The Best thing is to own Private Business. It is better to invest in your own private business rather than keeping cash on hand with you. I know that during the time of recession, Businesses shrink in their size and profits but still they can beat the inflation. The money that you have invested in your own Business will be well protected from the inflation/
03) Equity – Yes, In the long run, Equity beats both the Inflation & Tax – the 2 silent money killers of the money. In the short run (Less than 5 years), Equity is volatile but in the long run, it has outperformed any other Asset class in this world. Money Invested in Equity for more than 10 years are well protected against the Inflation.
04) Web Properties – Internet Assets are the new asset class but they are well protected from the heat of inflation. Say for example, take the example of this Blog. This Blog is my Internet Business and the money invested behind this Blog are well protected from the inflation in the long term. The money which I invest behind creating a great content for the readers of this Blog will reflect in the web traffic increase, revenue increase and the Blog Valuation increase.
This, all of the above are the Inflation proof assets. So Invest in them and protect your money from the Inflation.
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