Inflation hedge
An inflation hedge is an investment intended to protect the investor against—
Overview
Inflation can
Inflation can erode the value of investments over time. This is why it is important for investors to consider inflation when making investment decisions.[2]
Barron's Finance & Investment Handbook states: "Traditionally, gold and real estate have a reputation as good inflation hedges, though growth in stocks also can offset inflation in the long run. Money market funds, which pay higher yields as interest rates rise during inflation times, can also be a good inflation hedge."[3]
Certain cryptocurrencies like
Silver is also considered by some to be a hedge against inflation.[7]
Platinum, once considered to be a more speculative metal for investors, has turned out in the 2020s to be a metal seen as a hedge against inflation similar or superior to gold, silver, or Bitcoin.[8][9]
See also
References
- ^ Navin, John (15 September 2022). "Inflation Hedge: Not Stocks, Not Bonds, Not Crypto, Not Precious Metals". Forbes. Retrieved 6 December 2022.
- ^ Wilson, John (2022-11-23). "Macroeconomic Indicators For Investment Decisions". Clever Banker. Retrieved 2022-11-30.
- ^ John Downes & Jordan Elliot Goodman, Barron's Finance & Investment Handbook (6th ed.: Barron's Educational Series, 2003), p. 496.
- ^ Brockman, Katie (15 November 2021). "Is Bitcoin a Good Inflation Hedge?". www.fool.com/. The Motley Fool. Retrieved 8 December 2021.
- ^ Locke, Taylor. "Bitcoin isn't an inflation hedge, and it hasn't been for a long time, Bank of America says". Fortune. Retrieved 29 July 2022.
- ^ Partsinevelos, Kristina. "Redditors eye silver as hedge against inflation". www.cnbc.com/. CNBC. Retrieved 8 December 2021.
- ^ Creamer, Martin. "Many seeing platinum as hard asset, potential inflation hedge – WPIC". www.miningweekly.com. Creamer Media Mining Weekly. Retrieved 8 March 2022.
- ^ "Gold vs. Platinum: Which Is A Better Investment?". finance.yahoo.com. Yahoo Finance. Retrieved 8 March 2022.