Inflation hedge

An inflation hedge is an investment intended to protect the investor against (hedge) a decrease in the purchasing power of money (inflation).

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."[1]

Bitcoin is sometimes considered a modern "digital gold" and an alternative hedge against inflation to the more traditional gold.[2][3][4]

Silver is also considered by to be a hedge against inflation.[5]

See also

References
  1. John Downes & Jordan Elliot Goodman, Barron's Finance & Investment Handbook (6th ed.: Barron's Educational Series, 2003), p. 496.
  2. Dubey, Parth. "Bitcoin Could Rise To $1M, Billionaire Barry Sternlicht Says". https://www.ibtimes.com/. International Business Times. Retrieved 8 December 2021. External link in |website= (help)
  3. Rosen, Phil. "Ethereum is outperforming bitcoin because its a technology bet rather than a bet on inflation, says crypto bull Mike Novogratz". https://www.msn.com/. msn. Retrieved 8 December 2021. External link in |website= (help)
  4. Brockman, Katie. "Is Bitcoin a Good Inflation Hedge?". https://www.fool.com/. The Motley Fool. Retrieved 8 December 2021. External link in |website= (help)
  5. Partsinevelos, Kristina. "Redditors eye silver as hedge against inflation". https://www.cnbc.com/. CNBC. Retrieved 8 December 2021. External link in |website= (help)
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