How You Can Safeguard Your Wealth With These Hard Assets
Inflation is not going away. That is why it is critical to find ways to preserve your wealth.
It is no secret that inflation continues to be a concern for people, from going to the store to investors trying to find the best way to protect their wealth. In addition to the inflation problem, this decade is entering the period of the Fourth Turning. This is likely to be a tumultuous decade. It is a good idea to get your financial house in order, find ways to increase your income, and safeguard your wealth with hard assets.
The Problem Of Inflation
Broadly speaking, inflation is an increase in the price customers pay for goods and services over time in the economy. More specifically, inflation is caused by the rise in the money supply and too much money chasing too few goods and services.
A variety of factors causes inflation. The central banks, such as the Federal Reserve, are responsible for increasing and decreasing the money supply. When the Federal Reserve prints more money, that is one cause of rising inflation. Other influences include the prices of commodities since oil is used to deliver everything from food to grocery stores to the latest iPhone to stores. There are also issues of supply chain shocks that have been seen over the last few years.
Inflation is likely not going away. The Bureau of Labor Statistics estimates inflation to be 5.6% with its most recent CPI. If you compare that to Shadow Stats, the current numbers are closer to 13%. This should not be a surprise since the Fed wants its numbers to look good, so they manipulate what is included in the CPI. That is why your experience at the grocery store is drastically different from the rosy numbers presented by the Federal Reserve or Bureau of Labor Statistics.
Your currency also loses purchasing power when more money is printed. This is because the currency is being devalued. The dollar has lost value over time. You can see the depreciation of what a dollar can buy you over time in the chart below by Visual Capitalist.
Why Real Assets Do Best During Inflationary Times
Tangible assets do best during inflationary times because they are real. These are physical assets. They have intrinsic value, which helps them retain their value during an inflationary period. Tangible assets are popular with investors because they usually do well during inflation. After all, there is a limited supply available in the market.
These are the six ways that you can safeguard your wealth against rising inflation.
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