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7 Ways to Hedge Against Inflation

Jim Woods, June 24, 2009 Free Trading Guides

The Secret to Doubling Your Money Twice Every Month!

Inflation Hedge #2: Commodities

Gold isn't the only commodity that tends to trade higher along with inflation. When prices rise, so too does the cost of the most sought after commodities. Must-have materials of production, such as corn, wheat and aluminum, all tend to be sound hedges against rising inflation.

There are multiple ways investors can take advantage of a boom in commodity prices, but one of the best ways is to own an ETF that represents a broad spectrum of the commodities market. A good fund here is the PowerShares DB Commodity Index Tracking Fund (DBC), an investment designed to reflect the performance of the widely followed Deutsche Bank Liquid Commodity Index.

Should you trade commodities or commodity stocks? Find out here.

Next: An Oily and Gassy Proposition

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