Why Best Investments During Inflationary Times are important? If you notice that your grocery bill has gone up, you’re buying the same food. The prices of products and services have increased, then you’re witnessing the results of inflation. Inflation means the buying power of your money will decrease after a specific period of time. To secure your future and to keep your buying power above inflation, I’ll share with you the 5 best things you can invest in to avoid being affected by inflation.
What is Inflation?
Inflation is the rate of increase in prices of living in a country over a given period of time. Or the decline of buying power over time. The above image shows the impact of inflation on the buying power of money. A cup of coffee that we used to buy in 1970 for just $0.25 is now $1.85. The root cause of inflation is an increase in the supply of money. When a country print and give away money to its people, the supply of money increases.
5 Best Investments During Inflationary Times
1. Real Estate
Real estate is one of the best choices among investors, which does not just keep your assets above inflation, but also returns a profit in terms of an increase in the value of the property you’ve bought and rental income. You can buy a piece of land anywhere as an investment and leave it for a few years. Its value will increase in those years depending upon its location and future opportunities around it. For instance, If you’ve bought land near a developing market, then the value will massively increase as compared to an ordinary piece of land. Moreover, you can construct shops, apartments, and houses for rental purposes for regular income.
2. Gold
Gold has been another great choice in the best investments during inflationary times. The investment in gold is safe and stable to keep the value of your money above inflation. Either you can buy gold directly from dealers or another option is buying an ETF that owns gold. You can buy shares and hold them as long as you want. Your investment is safe.
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3. Commodities
Commodities include raw materials and agricultural products like oil, cotton, and copper. The prices of these items increase with the increase in the price of products made with them. For example, Higher prices of petrol and diesel will cause an increase in transportation rates. So buying commodities is another safe investment during inflation.
4. Cryptocurrency
Bitcoin is often described as digital gold. Due to its limited supply, it is being considered as a great store of value for individual investors, institutions and countries. Recently, several countries recognized bitcoin as a legal tender. They’re continuously buying bitcoin at lower prices to take advantages when it gets to all-time high prices. You can invest in bitcoin and other alt coins for future. Before investing, I would highly recommend you to learn about the market and trading. Crypto market is highly risky and volatile. I would recommend you not to invest more than 5% of your portfolio.
5. Stocks
Stocks can be good in long term inflation hedge, but may suffer in short term if inflation spikes. If you’re new in stocks, you should do research on best stocks to buy and create account on trading platforms. You can buy stocks of companies that are most likely to grow and give you good returns when you sell them.
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Conclusion
If you’re looking for Best Investments During Inflationary Times, then I’ve shared few of them in the above article. You can read, do research and invest in opportunities that are suitable for you to secure your future.
