An inflation hedge is an investment intended to protect the investor against—hedge—a decrease in the purchasing power of money—inflation. There is no investment known to be a successful hedge in all inflationary environments, just as there is no asset class guaranteed to increase in value in non-inflationary times.[1]
OverviewEdit
Inflation can impact investment decisions by making it difficult to predict future prices. This makes it risky to invest in certain assets, such as commodities, that may be impacted by inflation.
Inflation can erode the value of investments over time. This is why it is important for investors to consider inflation when making investment decisions.[2]
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."[3]
Certain cryptocurrencies like Bitcoin[4][5] are sometimes considered a modern "digital gold" and an alternative hedge against inflation to the more traditional gold, yet performed very poorly during the 2021–2022 inflation surge.[6]
Silver is also considered by some to be a hedge against inflation.[7]
Platinum, once considered to be a more speculative metal for investors, has turned out in the 2020s to be a metal seen as a hedge against inflation similar or superior to gold, silver, or Bitcoin.[8][9]
^Navin, John (15 September 2022). "Inflation Hedge: Not Stocks, Not Bonds, Not Crypto, Not Precious Metals". Forbes. Retrieved 6 December 2022.
^Wilson, John (2022-11-23). "Macroeconomic Indicators For Investment Decisions". Clever Banker. Retrieved 2022-11-30.
^John Downes & Jordan Elliot Goodman, Barron's Finance & Investment Handbook (6th ed.: Barron's Educational Series, 2003), p. 496.
^Rosen, Phil. "Ethereum is outperforming bitcoin because its a technology bet rather than a bet on inflation, says crypto bull Mike Novogratz". www.msn.com/. msn. Retrieved 8 December 2021.
^Brockman, Katie (15 November 2021). "Is Bitcoin a Good Inflation Hedge?". www.fool.com/. The Motley Fool. Retrieved 8 December 2021.
^Locke, Taylor. "Bitcoin isn't an inflation hedge, and it hasn't been for a long time, Bank of America says". Fortune. Retrieved 29 July 2022.
^Partsinevelos, Kristina. "Redditors eye silver as hedge against inflation". www.cnbc.com/. CNBC. Retrieved 8 December 2021.
^Creamer, Martin. "Many seeing platinum as hard asset, potential inflation hedge – WPIC". www.miningweekly.com. Creamer Media Mining Weekly. Retrieved 8 March 2022.
^"Gold vs. Platinum: Which Is A Better Investment?". finance.yahoo.com. Yahoo Finance. Retrieved 8 March 2022.
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inflation, hedge, inflation, hedge, investment, intended, protect, investor, against, hedge, decrease, purchasing, power, money, inflation, there, investment, known, successful, hedge, inflationary, environments, just, there, asset, class, guaranteed, increase. An inflation hedge is an investment intended to protect the investor against hedge a decrease in the purchasing power of money inflation There is no investment known to be a successful hedge in all inflationary environments just as there is no asset class guaranteed to increase in value in non inflationary times 1 Overview EditInflation can impact investment decisions by making it difficult to predict future prices This makes it risky to invest in certain assets such as commodities that may be impacted by inflation Inflation can erode the value of investments over time This is why it is important for investors to consider inflation when making investment decisions 2 Barron s Finance amp 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 3 Certain cryptocurrencies like Bitcoin 4 5 are sometimes considered a modern digital gold and an alternative hedge against inflation to the more traditional gold yet performed very poorly during the 2021 2022 inflation surge 6 Silver is also considered by some to be a hedge against inflation 7 Platinum once considered to be a more speculative metal for investors has turned out in the 2020s to be a metal seen as a hedge against inflation similar or superior to gold silver or Bitcoin 8 9 See also EditBitcoin Gold Goldbacks Platinum Inflation indexed bondReferences Edit Navin John 15 September 2022 Inflation Hedge Not Stocks Not Bonds Not Crypto Not Precious Metals Forbes Retrieved 6 December 2022 Wilson John 2022 11 23 Macroeconomic Indicators For Investment Decisions Clever Banker Retrieved 2022 11 30 John Downes amp Jordan Elliot Goodman Barron s Finance amp Investment Handbook 6th ed Barron s Educational Series 2003 p 496 Rosen Phil Ethereum is outperforming bitcoin because its a technology bet rather than a bet on inflation says crypto bull Mike Novogratz www msn com msn Retrieved 8 December 2021 Brockman Katie 15 November 2021 Is Bitcoin a Good Inflation Hedge www fool com The Motley Fool Retrieved 8 December 2021 Locke Taylor Bitcoin isn t an inflation hedge and it hasn t been for a long time Bank of America says Fortune Retrieved 29 July 2022 Partsinevelos Kristina Redditors eye silver as hedge against inflation www cnbc com CNBC Retrieved 8 December 2021 Creamer Martin Many seeing platinum as hard asset potential inflation hedge WPIC www miningweekly com Creamer Media Mining Weekly Retrieved 8 March 2022 Gold vs Platinum Which Is A Better Investment finance yahoo com Yahoo Finance Retrieved 8 March 2022 nbsp This finance related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Inflation hedge amp oldid 1178844876, wikipedia, wiki, book, books, library,
