Have you ever realized that a one dollar in 1935 is today 5 cents i.e. 95% of the value lost?
Why is this?
Of course for various reasons and one among them is Inflation.
Inflation – the word which is worrying the entire globe now.
While we IIG recommend that Investing should not be a part-time gamer, and one should do that consistently with conviction, during high Inflation times if one is focusing on safe-guarding the value of their money, then buying some hard assets to hedge the same would be a good choice.
Before, we tell you which hard asset we are referring in this article;
Let’s quickly look at what is a Hard Asset.
Hard Asset is one
a) Which is very difficult to produce
b) Which is very difficult to destroy and finally
c) Which doesn’t lose value
And the hard asset we are referring to is ‘GOLD’
If we look at the statistics of the past 100 years, we can see Gold has given a return of anything between 5 to 12% in different phases. Of course, there was volatility but on a longer period, it has retained its value
Because it is a hard asset
Gold is hard to produce: only 2 to 3% of the reserves are increased year on year
Gold is difficult to destroy: We can change its shape, but can’t chemically destroy it completely
Even world-wide central banks often use gold to diversify their assets and hedge against fiat currency depreciation.
In 2022, While Governments churning printers at a crazy speed…
IIG believes Gold will continue to preserve value and protect investors in times of inflation.
So, do invest some portion of your portfolio and hedge against this high inflation.