Protect Yourself from Inflation and Money Printing

Dear Reader:

Even though we are told inflation is “stagnant,” most of us have seen it firsthand. Inflation is often referred to as the “worst tax” because its effects go unnoticed by most people. Groceries are more expensive. Personal care items have gone up, and we have all noticed. Keeping the news of inflation under their hats helps keep the monetary system going. But we should all be prepared to protect ourselves and our wealth from inflation.
There are a few assets to consider when we start looking to protect ourselves from the money printing schemes that devalue the fiat currency.

REAL ESTATE

Real estate is a popular choice among investors looking to beat inflation. Not will the rising prices increase the resale value of the property over time, but because real estate can also be used to generate rental income, it can be used to combat inflation. Just as the value of the property rises with inflation, the amount tenants pay in rent can increase over time. These increases let the owner generate income through an investment property and helps them keep pace with the general rise in prices across the economy. Real estate investment includes direct ownership of property and indirect investment in securities, like a real estate investment trust(REIT).

COMMODITIES

When inflation devalues a fiat currency like the dollar, you will likely be in a great position if you choose to invest in commodities. The most popular of these is gold. Investors tend to go for the gold during inflationary times, causing its price to rise on global markets. Commodities also include items like oil, cotton, soybeans, and orange juice. Like gold, the price of oil moves with inflation and in our modern society, oil is necessary to move goods around. This cost increase flows through to the price of gasoline and then to the price of every consumer good transported by or produced.

BONDS

Investors can purchase inflation-indexed bonds. In the United States, Treasury Inflation Protected Securities(TIPS) are a popular option. pegged to the Consumer Price Index. When the CPI rises, so does the value of a TIPS investment. If you prefer to be a bit more aggressive, consider junk bonds. These tend to gain in value when inflation rises.

These are a few options to consider if you have any concerns about inflation. Personally, I think the biggest inflation concern is that fact that we’re being told it doesn’t exist when most of us can feel it in our wallets.

There are many pros to protecting your wealth from inflation, including diversified holdings and a preserved portfolio worth. You will also maintain your income’s buying power overtime. These suggestions should help keep you protected against the inflation that will be overly obvious at some point. Central banks love printing money and doing so devalues that which already in circulation.

Here’s an extra tip: Listen and wait for the announcement that QE4 will be commencing to know when to start thinking about protecting yourself from a devalued fiat currency. QE4 is a good indication that inflation will become noticeable at any time.

Best Regards,

James Davis
FutureMoneyTrends.com

Legal Notice:

This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. We have not been compensated in any way, have no business relationship to the company, and did not contact anyone from Sprott Inc. to speak with them regarding our unpaid coverage. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.