Is Gold THE Best Way to Inflation-Proof Your Portfolio?
Looking for ideas and find out more on how you can protect your money from the ravages of inflation? Read on…as two things may surprise you -it’s not just gold and silver, and diversified ideas can be found on the stock market and easily added to your portfolio. REQUEST MY FREE REPORT ON GOLD AND INFLATION -SEE BELOW. (thumbnail image courtesy of https://unsplash.com/@infrarate?utm_source=squarespace&medium=referral )
Will the 2020s be like the 1970s? No real growth and wild inflation? Everyone knows gold and silver ended the decade of the 1970s on a massive bull run that took gold from $35/oz to over $800. people may not be familiar with how other commodities, real estate and bonds did. A smart inflation-proof portfolio could also benefit from holding real estate, agricultural and base metal commodities, along with interest rate sensitive investments. the key is finding good bargains and not overpaying for “hot” assets. In today’s social media-infected market, we can’t to avoid buying an investment after someone pumps it up 50% on Twitter - make sense? (Photo via Unsplash.com)
Assembling a defense against rising inflation
When we think of inflation, we think of gold. And no doubt, gold and other precious metals are often the first place that experienced investors turn to when expecting jumps in inflation. But it’s not the only way to protect ourselves. On top of owning some solid, well run gold/silver/platinum/palladium mining companies, we can also explore real estate, other commodities and investments that perform well when interest rates rise (rates will often rise in an inflationary environment as investors sell bonds which offer no inflation protection).
Banks: banks and other financial firms can experience broader profit margins when long term interest rates rise. Meaning banks might be a growing investment in inflationary times. (Photo via Unsplash.com.)
Real Estate: the recent run up in real estate prices (especially in large, overpriced metros) masks the opportunity from the trend to warmer climates. Ideas here can be found on the stock market. (Photo via Unsplash.com @grantlemons)
Agricultural commodities. Food prices are at a 40 year low. it costs money to produce food and as input costs rise, the cost of the commodity rises. Investing in the commodity could help you gain when inflationary pressures are cutting down stock prices. (Photo via Unsplash https://unsplash.com/@christophem71?utm_source=squarespace&medium=referral )
Known as the “electric metal,” copper along with other base metals such as nickel are critical to our future electric economy. Copper is touching historic price levels in 2020-2021. (Photo via Unsplash.com https://unsplash.com/@sigmund?utm_source=squarespace&medium=referral)
If you’d like to get a copy of my recently published Financial Planning Alert on Gold, fill out the request form right here:
By the way, are you looking for smart ways to add inflation ideas to your portfolio? We research diverse off the radar ideas in addition to mainstream ideas to help our clients diversify their portfolios. We do this as part of our overall financial planning strategy. Want to see what we can do for you? Fill out our intake form and we will reach back out to you to schedule a time to chat. Just click this big button below to get started.
And thanks for visiting PlanwithChris.com.