3 investments to consider with inflation rising

As inflation continues to rise despite higher interest rates, it may be time to review your investments. Stocks fell on Wednesday as updated inflation data mitigated the chances of rate cuts in 2024demonstrating how rising inflation can threaten your investment assets.

But the truth is that inflation can threaten your entire savings. In other words, unless you take steps to protect it.

The current inflation rate is 3.5%, which will not only make borrowing more expensive, but could also affect the returns you get with your traditional investments. But how do you do it protect your investment portfolio from rising inflation? One way to do this is to invest in assets that typically perform well during times of inflation.

Invest in gold now to protect your portfolio from rising inflation.

3 investments to consider with rising inflation

As inflation rises, your savings could lose value. Here are three investments that can protect your portfolio:

Gold

Gold is a strong choice among investors Wants protect their portfolios from inflation. As with most products, the price of precious metal is largely determined by the law of supply and demand. When supply exceeds demand, the value of gold tends to stagnate or even decline, and when demand exceeds supply, the price of gold is likely to rise.

This could be good news given recent inflation data.

Gold is in limited supply. And demand for the precious metal generally increases during inflationary periods. Indeed, investors view the precious metal as a safe way to store the value of their savings in times of persistent inflation. So, during these periods, the price of the product tends to increase. And this was proven in recent weeks when the gold price broke many records. With gold up more than $150 vs. Marchit is logical to buy now before it becomes prohibitive.

Compare your gold investment options now.

Money

Money is another precious metal that may be worth investing in as long as inflation persists. As is the case with gold, the price of silver is generally at the mercy of supply and demand. And even though the price of silver is not as stable as that of gold, this precious metal can offer protection during inflationary periods.

But that’s not the only reason to consider investing in money right away. Many industrial uses of money will likely continue to generate significant demand, even in the face of rising prices. The precious metal is commonly used in the healthcare and renewable energy sectors. This is important because these sectors can continue to grow regardless of the state of the economy or inflation. Since medical needs are not affected by economic conditions, medical demand is not expected to weaken.

These sectors, combined with investor demand for safe haven assets, could lead to a rise in the price of silver.

Real estate

Inflation was high in March for the third consecutive month, and in all three reports (January, FEBRUARY and March), growth in housing costs has been cited as one of the main drivers of rising overall prices. So, investing in real estate can be an effective way to protect your portfolio against inflation.

In addition to its inflation-hedging position, real estate can also become a generator of income. After all, you have the opportunity to transform your property into a rental property, potentially generating regular income.

The essential

As inflation continues to devalue the dollar, it is wise to take steps to protect your portfolio. Investing in precious metals, such as gold and silver, can protect the value of your portfolio amid rising inflation. Additionally, real estate investments can allow you to generate a regular income while protecting your portfolio from the dollar-devaluing impact of rising inflation. Whichever option you choose, consider acting quickly as inflation shows no signs of slowing.