What Are Hyperinflation Proof Investments?

If you are worried about the value of the dollar, you should start looking for hyperinflation proof investments. It is not yet the time for these investment alternatives. Nevertheless, you will need to utilize them hastily if the time ever comes. It is too late to react to hyperinflation once it has already started.

Hyperinflation proof investments will not be subject to the whims of governments that like to print money. Therefore, you do not want to have much of your investments in cash when hyperinflation becomes a reality. The only exception to this might be a foreign currency that is stable compared to the currency that is suffering hyperinflation. Bonds are also a bad place for investment unless they are Treasury Inflation-Protected Securities (TIPS). TIPS are designed to keep pace with inflation.

Examples of Hyperinflation Proof Investments

Good hyperinflation proof investments are largely commodities. These assets resist inflation because they exist in finite quantities. As the amount of money available increases, it eventually takes more money to buy these raw materials. Therefore, if you own these items, the basis of your wealth can keep pace with inflation. The best commodities for hyperinflation proof investments, though, are precious metals and energy.

Other hyperinflation proof investments include property and certain foreign equities. Contrary to popular belief, property is probably the best of all investments. The sub-prime mortgage crisis sent property values crashing down a few years ago but land is still the biggest generator of wealth on the planet due to the rents earned on occupied properties. Foreign stocks can be hyperinflation proof investments in this situation as long as they maintain a distance from the currency experiencing hyperinflation.

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