Inflation and protecting you wealth

[dothebeats]

I recently just got into REITs after it was introduced to me by my friend and was explained to me in detail on how it works. I am already invested in gold, bitcoin, and some other commodities, and I’m trying my best to stay away from art as it is extremely hard to pick which art pieces will appreciate in value and which ones will just collect dust on one corner of my house. I have diversified into several asset classes, and I think I’m already pretty solid when inflation hits us hard in the ass.

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.

I would have to disagree on petrol or oil. They are pretty volatile especially if you don’t have a specialized container, or warehouse to keep them.

[timerland]

I think that everything you listed has some merit and you should hold some in order to hedge yourself.

I don't believe in concentrating your positions when you are trying to hedge against inflation.

Commodities especially are extremely volatile and can fluctuate on a random basis. You could be left seriously holding your bag if you turn to just commodities, or just equities. Diversification is key.

[Fatunad]

I think that everything you listed has some merit and you should hold some in order to hedge yourself.

I don't believe in concentrating your positions when you are trying to hedge against inflation.

Commodities especially are extremely volatile and can fluctuate on a random basis. You could be left seriously holding your bag if you turn to just commodities, or just equities. Diversification is key.

Diversification is the key or much preferred as always but to think that not all would really be having that capacity or capability in doing so thats why they do really just ending up with those common options.
Its just understandable that we are really trying our best to protect our profits or investment with possible losses but there are instances or situations which cant really be avoided and you would really be
hit up by inflation and its just common sense that you would really be finding ways on how to reduce it at least or avoid it on total wreckage or ending up on holding for too long.

[FulxilCoris]

Centralization is part of what is causing the economic failures but that doesn't mean Bitcoin will solve them all. While BTC is a pleasant way to store your assets, volatility is also an issue. If you can buy low all the time but all of them have pros, cons and risks.

[livingfree]

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.

I would have to disagree on petrol or oil. They are pretty volatile especially if you don’t have a specialized container, or warehouse to keep them.

IIRC, there's also the time that oil went down in prices for a couple of days or it has been down for a week. And as well as keeping it, you might find your storage in a danger.

It is true that there's a need for a special storage or container for it.

Not just because you're investing on it, you should have it on your house.

[Ausgewielt]

That's right but actually people who suffering because of inflation are only those who only have fixed income. For example, let's say I am a business man, when I use my money to create product and keep the money in good velocity then inflation will not cause bad effect on me even when inflation happen I can rise the price of my product so I can get higher profit. But this only happen to a small percentage of people around the world. Most of us are suffering because of inflation.

[cabron]

That's right but actually people who suffering because of inflation are only those who only have fixed income. For example, let's say I am a business man, when I use my money to create product and keep the money in good velocity then inflation will not cause bad effect on me even when inflation happen I can rise the price of my product so I can get higher profit. But this only happen to a small percentage of people around the world. Most of us are suffering because of inflation.

If you have a very high-demand product you can also try the package downsizing to make more profit, shady things that businesses do to make money.
The suggestions I find to make more sense is the real estate like a strategic lot area where a store will likely profit is installed. Such location will be of high value after this pandemic.

But I wouldn't really be putting it all there but Bitcoin is where it's good because I'm afraid war is brewing.

[EewardDean]

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?

Inflation is indeed a distressing problem, but the technology of cryptocurrency has given us the foundation to resist inflation. As a way to preserve value, a decentralized way can achieve these characteristics.

[Maeve@]

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?

Many people invest in gold or other value-preserving assets, especially gold. As an asset with a long history, most people choose gold as a value-preserving asset. However, the fluctuation of gold is small, so the income is low. In order to avoid the impact of inflation, You can choose these assets to invest.

[traderethereum]

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?

Many people invest in gold or other value-preserving assets, especially gold. As an asset with a long history, most people choose gold as a value-preserving asset. However, the fluctuation of gold is small, so the income is low. In order to avoid the impact of inflation, You can choose these assets to invest.

That is because people already know gold as the best investment from a long time ago.
But the era already changes and with crypto involved in people's lives, that will give them more opportunity to grow their investment asset and not just hold their asset but also have to profit from crypto.
So every investment will get the impact of inflation, but crypto will have a chance to grow higher in the future, depend on what coin we select.
I wish people out there would realize how crypto can give them a better investment besides gold to make a profit in the future.

[worle1bm]

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?

Many people invest in gold or other value-preserving assets, especially gold. As an asset with a long history, most people choose gold as a value-preserving asset. However, the fluctuation of gold is small, so the income is low. In order to avoid the impact of inflation, You can choose these assets to invest.

Gold is no more a favourable choice of people and investment have gone significantly down these days as negative return to holders are delivered by gold.The visionary people are now aware that storing gold in bank lockers will not give them any profit similar to fiat so they are moving to some other better options for them.

[tyz]

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?

Basically, there are many ways to protect your fortune from inflation in the long run. However, over the longest period in human history, gold has clearly proven its worth. Of course, real estate is an option, but real estate can be destroyed by natural disasters or wars, for example, or even seized by government, while this is much more difficult with precious metals. In recent years, bitcoin and cryptocurrencies have also been added to list of being a protection from inflation, but I would still be cautious here. We all assume that Bitcoin is a hedge against inflation, but long-term data is still simply lacking to prove this. That's why my tip is gold.

[SquallLeonhart]

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.

I have been storing gold the way you mentioned for a long time now and never had a problem. My bank account allows me to buy gold digitally, basically you do not own gold but you own gold digitally on your bank account, same as money itself because I do not own my fiat currency myself, it is in the bank and if I ever want to withdraw then I can, or I could use my debit card to spend that, most money in the world is digitally moved around from one account to another, so gold is the same for my bank, just digitally there, when price of gold goes up then my gold worth goes up there too. I owned some for nearly 5 years now and I am quite happy with it.

I still prefer crypto over gold, crypto is much much better way to protect your wealth because it also goes up a ton as well while gold doesn't go up too much. However that doesn't change the fact that gold is not bad, I agree with that part.

[Dread Pirate Roberts]

How would you defend yourself from inflation:

It depends on the amount of assets I have. but for sure I mix real estate and cryptocurrency and bitcoin and I think if the goal is to be safe from inflation the goal is to keep the value of our wealth the same as before. because so far it seems property is safe from inflation . and as a believer in bitcoin i think bitcoin will also save from inflation.

[noorman0]

That's right but actually people who suffering because of inflation are only those who only have fixed income. For example, let's say I am a business man, when I use my money to create product and keep the money in good velocity then inflation will not cause bad effect on me even when inflation happen I can rise the price of my product so I can get higher profit. But this only happen to a small percentage of people around the world. Most of us are suffering because of inflation.

That doesn't help you avoid the bad effects of inflation. Since you need money to make your product, you have to spend more capital because the seller also increases the price of the raw materials of your product. Also, don't forget that you have to fulfill your basic needs.

You will still feel the bad effects of inflation as long as you are a consumer, unless you have reserved all your needs before inflation occurs.

[Natalim]

That's right but actually people who suffering because of inflation are only those who only have fixed income. For example, let's say I am a business man, when I use my money to create product and keep the money in good velocity then inflation will not cause bad effect on me even when inflation happen I can rise the price of my product so I can get higher profit. But this only happen to a small percentage of people around the world. Most of us are suffering because of inflation.

That doesn't help you avoid the bad effects of inflation. Since you need money to make your product, you have to spend more capital because the seller also increases the price of the raw materials of your product. Also, don't forget that you have to fulfill your basic needs.

You will still feel the bad effects of inflation as long as you are a consumer, unless you have reserved all your needs before inflation occurs.

I would say that this fast surging inflation affects everyone either you're a big time businessman or a minimum wage earner. And i do think that this will even continue in the following years, seeing all commodities' prices continue to surge high. So i started buying bitcoin wherein only deflation can be seen. And i'm also into storing gold just to diversify my investments so i won't feel much about the high inflation. I still plan to invest into some other outlets but i'm still on the process of earning my funds. In this way, even if high inflation continues, at least im also making myself more productive with my various investments.

   

[fullhdpixel]

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.

Yeah, everything OP has mentioned are good, although I don’t know much about buying arts and how it works, but I have seen people sell art piece for a huge amount of money that is far more than what they invested in it.

For me, at my level I can only go with bitcoin and stocks for now. I started bitcoin in 2014 and it has been working for me. I haven’t made much from stocks, the profit is usually small, although I have invested in some that gave me over 22% return on investment, but most of the times it is around 12% or even less than that. But what I have been able to achieve with bitcoin has no limits.

[suryogandul]

no one is safe from inflation even if you choose from some of the points you mentioned above. everything will be affected by inflation, but the most important thing is how our mindset is to be able to cope with inflation as best we can ourselves. because only ourselves can manage our economy

[Sithara007]

I have been storing gold the way you mentioned for a long time now and never had a problem. My bank account allows me to buy gold digitally, basically you do not own gold but you own gold digitally on your bank account, same as money itself because I do not own my fiat currency myself, it is in the bank and if I ever want to withdraw then I can, or I could use my debit card to spend that, most money in the world is digitally moved around from one account to another, so gold is the same for my bank, just digitally there, when price of gold goes up then my gold worth goes up there too. I owned some for nearly 5 years now and I am quite happy with it.

I still prefer crypto over gold, crypto is much much better way to protect your wealth because it also goes up a ton as well while gold doesn't go up too much. However that doesn't change the fact that gold is not bad, I agree with that part.

Sounds risky for me. In Cyprus, they implemented a 85% haircut on savings bank deposits. What makes you think that in the future the governments will leave ETFs and demat accounts untouched, in case they face a cash-crunch? ETFs are easier to store and trade. But at the same time, they are very vulnerable to asset seizure. I have both ETFs and physical gold. The reason why I always keep a portion of my wealth in the form of physical assets is due to the above mentioned factor. The governments always want a cashless, digital economy. Because that makes it much more easier to steal assets from hard working people.

[19Nov16]

Inflation in my country is around 8% per year, this makes the necessities of life always rise so that if only relying on office salaries will certainly not be enough, to survive and overcome inflation the thing I do is invest in many places even though the value is small, at this time I invest in stocks and cryptocurrencies and I hope to make big profits one day so I can start a poultry farming business.