Inflation and protecting you wealth

[mk4]

Gold is fricking expensive to keep, most arts in the market are either expensive because it's a master piece or it's expensive because it's appraisal is overvalued because it was owned by a rich person that has a connection to the appraiser. For me though, I only have bitcoin as an investment but that will eventually becomes different because I plan to slowly diversify my investments too.

Storing gold isn't THAT bad, unless you're a billionaire and you're planning on buying dozens of gold bars then sure lol. Not to mention that reputable gold ETFs like SPDR Gold Shares(GLD) and iShares Gold Trust(IAU) have existed for a while now.

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[Lucius]

I’d rather diversify a bit to protect myself from all sides; simply because we’re in uncharted territory economy-wise, and we can’t say for sure how bitcoin will perform in a really bad economic situation.

What would be a really bad economic situation for you? Is this what happened in the spring of 2020 when everything collapsed (including BTC), or maybe you mean some new global economic crisis that will last for years? I want to believe that Bitcoin will be resistant to something like that, but for now we can't say that this is the case - because every disturbance in the markets also affects the price of BTC.


I think the protection of wealth is not just a necessary investment in gold, real estate, or stocks - but that smart investment can also be an investment in producing something that people always need - and that is first and foremost food, with an emphasis on healthy food. Of course, this is something that requires a lot more work and commitment than classic investments, but the risk of losing everything is still lower.

[mk4]

What would be a really bad economic situation for you? Is this what happened in the spring of 2020 when everything collapsed (including BTC), or maybe you mean some new global economic crisis that will last for years? I want to believe that Bitcoin will be resistant to something like that, but for now we can't say that this is the case - because every disturbance in the markets also affects the price of BTC.

Idk, probably something a bit worse than the current economy that's been brought into limbo by the pandemic.

And yea, I'd like to think that bitcoin will do good as well, but I'm really not betting on it and I'm not that confident. There's just too much weak hands that I wouldn't be surprised if people would dump when needed to; not to mention that a lot of retail look at bitcoin mainly as a get-rich-quick investment and not necessarily an economic hedge in the first place.

[leea-1334]

Something I know a lot of crypto people are against but I would still say is a legit way to defend against inflation is to take advantage of government bonds (or mutual funds in Asia).

The interest can be quite high almost 8-10%, guaranteed by government. If you can get your interest to be higher or equal to inflation, then you protect your wealth.

Commodities, stocks, art, these can go up in value but can also go down or in case of art even you may not find a buyer.

[The Sceptical Chymist]

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation.

Curious about what you were listening to--and the reason I'm curious is because a lot of podcasts/talk radio personalities/Youtube videos tend to exaggerate and distort how bad problems are, and it's usually because they want to sell you something.  One person that comes to mind immediately is Robert Kiyosaki, but there are many others.

- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.

Bitcoin?  I don't know; take a look at how it's performed in the past few days.  It all depends on when you buy it and where it is when you finally decide to cash out--and that's true for any of the things listed above.  Personally, I don't think any cryptocurrency is a good choice for a hedge against inflation, and that's just based on volatility alone.

Art? No. 

Stocks?  Yes, but buying them right now is a huge gamble since we've been in the longest bull market in history, and many of them are extremely overvalued.  Even if you bought an index tracking fund you might be in trouble, never mind trying to pick stocks individually.

Commodities?  I don't know; I don't invest in them except for a little bit of silver.  Gold and silver are what most people think of when considering inflation hedges, and I'd say those are probably the best choice.  Volatility is pretty low, and you can always find a buyer when it's time to sell (unlike art).

Real estate?  Right now that's also very risky, because I've heard stories about the market being in a bubble.  But buying something like a rental property that provides income might not be a bad idea.  REITs are just a subset of stocks, and personally I like them for their income.  But again, their value could fall significantly if there is a housing market bubble and it ends up popping.

[ethereumhunter]

As a crypto user, I prefer to buy bitcoin to protect my value. Although I know that bitcoin price can follow getting down because of the world situations, I can get my value increase in the future. The common people may prefer to buy gold to protect their money and save the gold in their safety box. If you have a lot of money, it will not be difficult to diversify your investment, but most people will not think much about inflation and follow what their government suggests.

[Sanugarid]

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

It's actually wise to allocate some money from one of those things you've mentioned instead of placing it all in your bank accounts and do nothing about it because the purchasing power of your money steadily decreasing due to inflation. Personally, I have allocated a percentage of my wealth in BTC and planning to buy some ALTCOINs which has good potential in the future. Art? Definitely not interested in Art and have no knowledge about it at all.

[crwth]

Imagine that everything has happened in the past few years. We have already made record-breaking highs even after the economic downfall during the pandemic. Many people now have recovered with most of their finances, and it could be with the help of cryptocurrencies as well. So knowing that idea, it's best to have your asset to something that you believe will rise in value and has diversified with suitable investments is a great way to protect you from inflation problems.

The vital part, in this case, is the investment you are making. Knowing what you are investing in and believing that it could protect you will go a long way and help you with emotional stress. You are accepting that it could go either way.

[suzanne5223]

Something I know a lot of crypto people are against but I would still say is a legit way to defend against inflation is to take advantage of government bonds (or mutual funds in Asia).

The interest can be quite high almost 8-10%, guaranteed by government. If you can get your interest to be higher or equal to inflation, then you protect your wealth.

Commodities, stocks, art, these can go up in value but can also go down or in case of art even you may not find a buyer.

I agreed with what you said if we are talking about a centralized investment option but still, the best decision about the government bonds investment is to take advantage of it because the government can not be totally trusted.

Bitcoin?  I don't know; take a look at how it's performed in the past few days.  It all depends on when you buy it and where it is when you finally decide to cash out--and that's true for any of the things listed above.  Personally, I don't think any cryptocurrency is a good choice for a hedge against inflation, and that's just based on volatility alone.

Absolutely and I have said it in some of my previous posts. Invest in Bitcoin is now risky and dangerous if the investor is not a long term holder that brought before the start of the bullish market because if the market replicates the previous halving momentum market blood bath can happen anytime.

[Kakmakr]

There is no "secret sauce" that fits all investors ...so you have to look at a lot of things, before you choose a mix of investments. A younger investor can take bigger risks, because they have time to recover..if something fails. An older investor has to balance the investments to protect their retirement.

Crypto currencies are a high risk investment and a perfect fit for the younger generation, so their exposure to Crypto currencies should be much bigger than the older investor. Example : (40% Crypto 40% Stocks and Bonds and 20% into real estate...... where the older investor will have say 20% Crypto / 30% Commodities / 40% real estate and 10% Stocks and Bonds)

It is all about the managing of risk in your portfolio, based on your risk analysis and ability to recover.  

[hugeblack]

You will not get an accurate answer without including more details. For example, inflation problems in many countries are 5% or less, while many countries have rates above 30%, and therefore the tools available to some may not be available for many countries.
Just as inflation is not the only dilemma of the economy, there are many economic problems that must be solved.
Buying bitcoin and real estate is the solution available in all countries, but we must determine the amount of profit and loss with the extent of the person’s experience.
Some countries do not have individual access to shares.
Buying goods and art is not a solution to the problem, but rather a deepening of it.

[iv4n]

...
How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

Buying in this case means investing your money! So the only way to protect yourself from inflation (when your fiat is losing value over time) is to buy/invest in anything that has the potential to keep your wealth or even in a better case to raise it!

We discussed these investments here in the economy a lot of times! I guess the bottom line is simple, it's easy to say "buy something", but in reality, there's always an "entry fee", there's always ROI, and other stuff, it's never just "buying"! It's silly to talk about buying some nice property and renting it or waiting to sell it future when that specific market goes up when you live in the rented apartment and on minimum wage! But I guess it's not silly for that person to buy a fraction of some coins whenever he can, it comes much easier and affordable for ordinary people!

So as an ordinary guy, I favor crypto, but those who have a lot of money here or anywhere can have some fun in buying really expensive stuff around the world, that is probably the best solution for keeping wealth!

[palle11]

Real estate investment have proved to be the best kind of investment both for long and short time investment. I have not been aware of a real estate investment complaining of losing the investment, the asset is usually adding with the future. This is not affected by inflation because it has no corresponding factor that will get the price to decrease rather with the building of proper channels for social amenities in the surrounding including good roads, the price keep increasing. This is more beneficial kind of investment and can be insured.

[lixer]

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

You have said it all, I don’t think there is anything much that I would like to add to this. Bitcoin itself is already a very good investment for anyone to make. And the good thing about Bitcoin is that the profit you are likely to make will be bigger than what you make from others, because it is volatile. Although that doesn’t mean that there are no risk involved in it, there are so many risks that are involved in buying Bitcoin, but I believe as a long term investor you will be able to regain whatever you lose and make better profits if you can hold for a long time.

[arallmuus]

We have already made record-breaking highs even after the economic downfall during the pandemic.

The economic downfall was probably the main reason that the whole crypto marketcap hit the ATH record. Interest rate for treasury bond was way lower then the average so some hedge fund firm took a portion of the investment then put it in crypto market

Many people now have recovered with most of their finances, and it could be with the help of cryptocurrencies as well.

Some made significant gains and some others lose alot of money.

The vital part, in this case, is the investment you are making. Knowing what you are investing in and believing that it could protect you will go a long way and help you with emotional stress.

If this is so then according to this statement, crypto is pretty much a bad investment because it is pretty much roller coaster and commodities such as gold fall off to be the best because it is a good hedging option against inflation as well as pretty much stable the whole year

[justdimin]

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

You have said it all, I don’t think there is anything much that I would like to add to this. Bitcoin itself is already a very good investment for anyone to make. And the good thing about Bitcoin is that the profit you are likely to make will be bigger than what you make from others, because it is volatile. Although that doesn’t mean that there are no risk involved in it, there are so many risks that are involved in buying Bitcoin, but I believe as a long term investor you will be able to regain whatever you lose and make better profits if you can hold for a long time.

So far what has gotten me good enough profit is bitcoin. I have invested in other stocks and commodities, and they don’t really get me profit like bitcoin would. So I have focused more on investing in bitcoin than others, although that haven’t stopped from investing my money in other areas of investment.

I do buy bonds and company shares, investing in farm lands and so many more. Farming investment is another that also seems to be working pretty well for me and I have also been able to gain from it, some of them can make you as much as twenty percent and more on your investment. I’m planning on real estate next, but bitcoin still remains my number one.

[leea-1334]

Something I know a lot of crypto people are against but I would still say is a legit way to defend against inflation is to take advantage of government bonds (or mutual funds in Asia).

I agreed with what you said if we are talking about a centralized investment option but still, the best decision about the government bonds investment is to take advantage of it because the government can not be totally trusted.

Yes but almost all the options provided as alternatives were centralized actually, except for bitcoin itself.

I do agree you cannot fully trust centralized options but the idea is to diversify risk and protect against inflation,,, and let us face it, you would be very very unlucky if your government in Asia today collapsed and lost all of your money. Again, my suggestion was not to put all eggs in a basket but add another extra basket to keep eggs in  

[bitzizzix]

To protect my finances from inflation, I am more interested in investing in property and an example of property investment can be a house to be used as a boarding house and tenement for rent, especially if I maximize it with a laundry or catering business, and what I mentioned has been a desire since long.
and besides that if the price of goods goes up I can also enjoy a price increase by adding rental fees and so on.
and I will also choose bitcoin even though it is very risky but I believe in the long term it will be fine.

[King Khaizan]

By far, the absolute best investment you can use to face an uncertain future that may include higher prices is investing in yourself. There is nothing more effective in fighting inflation than investing in yourself to increase your potential future earning power. This investment starts with getting a quality education and then continues to strive to learn new skills that match the needs that are most needed in the future. It is no coincidence that the higher the level of education, the higher the salary and the greater the job opportunities. Further education allows a person to not only inflation-proof his salary, but also recession-proof his career.

More than stocks, bonds or homes, investing in yourself is the easiest and most effective way to fight inflation and all forms of economic turmoil is to increase your future earning potential by investing in yourself today.















https://id.talkingofmoney.com/timeless-ways-to-protect-yourself-from-inflation

[worldofcoins]

If inflation is the problem then I would suggest investing in raw materials such as oil petrol, Also, in Gold and Silver.
These things don't go down in price a lot or say have less volatility.

You should also consider investing in those and Bitcoin for long term investments.