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The Hunt is on for Inflation Safe Investments

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Inflation Safe Investments

Riding the Storm out with Inflation Safe Investments

Inflation safe investments are all the rage these days. No matter how many official bodies issue soothing assurances that inflation is not rising and not likely to rise in the foreseeable future; many investors are simply not willing to put their money where the government’s mouth is.

Types of Inflation Safe Investments

There are a number of investment vehicles that are specifically designed to insulate the individual against the ravages of a depreciating currency.

• Traditionally, gold and silver are the most popular inflation hedges.  There are many different ways in which to invest in gold and silver. There are gold and silver mining stocks, which tend to jump during periods of high inflationary expectations. There is physical gold and silver, such as bullion bars of the actual metal. There is collectible and numismatic gold and silver, such as rare coins and pieces of art made out of precious metals.

• The United States Treasury, despite its protestations as to the unlikelihood of inflation, nevertheless offers a special category of bond known as a Treasury Inflation Protected Security, or TIPS. A TIPS bond is the same as a regular Treasury instrument with the exception that the rate of return floats in accordance with the level of inflation.

• For the seriously convinced investors, there may be no better investment strategy than to borrow as much money as is humanly possible in the expectation that inflation will destroy the value of the currency and allow the debtor to repay his luckless creditors with the practical equivalent of pennies for every dollar borrowed.

No matter what strategy is chosen, the fact that the Federal Reserve is effectively printing an additional 85 billion dollars a month through the subterfuges of its various QE programs leads one to suspect that inflation is more of a threat than official sources would like for people to believe.

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