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 simply lacking. That's why my tip is gold.