Inflation hedge

An inflation hedge is an investment intended to protect the investor against (hedge) a decrease in the purchasing power of money (inflation).

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."[1]

Bitcoin is sometimes considered a modern "digital gold" and an alternative hedge against inflation to the more traditional gold.[2][3]

Silver is also considered by to be a hedge against inflation.[4]

Platinum, once considered to be a more speculative metal for investors, has turned out in the 2020's to be a metal seen as a hedge against inflation similar or superior to gold, silver, or Bitcoin.[5][6]


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