7 Ways to Hedge Against Inflation
Jim Woods, June 24, 2009
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Inflation Hedge #1: Gold
The oldest -- and some argue best -- inflation hedge out there is gold. It's a tangible asset that can't be easily produced, and because of its limited supply and the expense involved in finding more of it, gold is the perfect choice for use as currency and a great hedge against inflation. When dollars become less valuable, investors want to own something that's not subject to the whim of government fiat.
In years past, gold was very difficult to purchase and own. Now, however, owning gold is easy thanks to exchange-traded funds (ETFs) such as the SPDR Gold Trust (GLD). This investment seeks performance results that correspond to the price of gold bullion. With GLD, you can put a golden compass in your portfolio that can help you battle the ravages of inflation.
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