arshad5

Some parts of the world are facing high inflation at the moment. Investors obviously want to maintain the value of their money. What is a good hedge against high inflation?

ehtasab

Buy low sell high.

okay just kidding. Buy gold or diamond ("Diamonds are forever"!) as short term solution against inflation (even it will help in long term IMO).

arshad5

Yep Gold is a good hedge against inflation. It never goes out of fashion. Why do you say short-term?

ehtasab

Short-term, because inflation isn't going to be high for long. If you want a long-term hedge than in invest in a real-estate property in an area which would be running out of space (something like Bay area or LA or Austin) or even Karachi (bound by ocean on two sides) or Dubai.

arshad5

Even in the long-term gold does retain its value even when paper money loses its value.

Property is another hedge against inflation so long as you don't owe anything to the bank. Selected areas may outperform the market but then this becomes investment rather than just hedging inflation.

ehsan

In the medium to long term property is still a good hedge as is investing in stock market sectors which are suffering at the moment, however with the stock market timing is important.

arshad5

The thing about the stock market is that some companies even in a bullish market still lose their way. Timing is important as is the stock pick.

siddhantkumar

Gold. Gold is only real money.

Diamonds may be forever but they are in ample supply and it's prices are artificially control by selected companies (De bears) and marketing skills.