Fixed Assets – Strategies Against Inflation

Up time Gen of the currently best strategies in the market for a saver there nothing worse to see lose value just as the hard-earned assets over time. But, exactly what happens with inflation. (Similarly see: Ben Silbermann). With the rising prices, you get less and less for the painstakingly saved money. Therefore it is no wonder, that many savers were advised for fear of inflation by specialists such as here and in fixed assets such as precious metals and real estate investing. Monetary investments suffer depreciation pure non-monetary and monetary investments such as insurance and savings have the significant disadvantage that their actual value considerably depends on the inflation rates of inflation. Also currency reforms and wars can lead to dire consequences. Over time, this leads to significant loss of purchasing power.

If inflation is greater than the yield of the investment, investors even over time will lose money. Therefore it should be at least one compensation for inflation, what money market accounts and Government bonds currently can not guarantee. Stable investment for long-term return on investment instead of relying with the slow, but steady inflation in the course of time come to terms, savers have the opportunity to hedge the value of their assets in a more stable form for the future. Who owns property, must no longer afraid of the threat of inflation. Following list provides an overview of any tangible assets: precious metals: 1 kilogram gold remains always a 1 kilogram gold. It is real, physical currency, which is permanently in demand and due to the limited availability has a relatively constant value.

: Private investors can buy raw materials indirect shares of sought-after raw materials such as oil, by taking part in relevant companies. Alternatively, there is the so-called Exchange traded commodities”(ETC), which depict the development of the course. Real estate: Who buys a House at market-related prices, saves a life lease payments and protect future generations. Popular Residential areas provide also regular rental income. On request, also a resale is possible at a later date. Securities: Innovative companies with unique features and potential future offer the greatest security on the stock market. Because of the danger of high price fluctuations, it is advisable to diversify the risk of equity funds. Bonds with inflation protection: this special form of bonds includes in addition to the normal interest rate even a compensation according to the given rate of inflation. The interest rate and thus yield is very low. In General, it can be said that it is not advisable to apply the saved assets only in a single form. So can be invested partly in different applications, to achieve greater security through diversification in the case of inflation.