If I expect inflation is coming, what should I do in order to save the value of my cash money?
Question:
Answer:
Historically, gold has been one of the best places to store wealth. You can buy physical (coin shops), mining stocks or even a bullion fund.
Another route would be to open an account with Treasury Direct. The US government offers "TIPS" that pay an interest rate PLUS a CPI adjustment. An added bonus is that the interest is not subject to state taxes.
I think that inflation is coming as well - good luck!
The best thing to do with inflation is to have as little money on hand as possible. Having wealth in currency means that you are losing buying potential. Putting your money into something that will not loose value as inflation happens (basically any durable good), is the best way to go. While a savings account sounds like a good idea, there is little chance that the interest rate will even cover the affects of inflation.
Stocks prices are inversely correlated with inflation over short to intermediate periods. Stocks outperform inflation over long periods due to readjustments in prices and asset values. Treasury bills are correlated with inflation. A better option is a bank money market account at a high paying bank. They are well ahead of t-bills for the same risk. You will preserve value after taxes.
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