Inflation-Resistant Assets: Why Gold, Silver, and Bitcoin Are Worth Buying
As inflation remains above target at 3.4%, investors are seeking inflation-proof assets to counterbalance rising rates and decreased corporate margins.
To combat this, experts recommend increasing exposure to gold, silver, and Bitcoin, which have historically demonstrated resilience against inflationary pressures.
Gold, for instance, has risen by 588% over the past 20 years while the domestic purchasing power of the US dollar declined by 35-40%. The SPDR Gold Trust ETF (GLD) is a popular choice, holding $141 billion in assets and charging a gross expense ratio of 0.40%.
Silver, another inflation-proof investment, has surged 460% over the past 20 years due to its scarcity and growing demand for solar panels, electric vehicles, and consumer electronics. The iShares Silver Trust ETF (SLV) is the world's largest silver ETF with over $30 billion in assets.
Bitcoin, like gold and silver, has a limited supply of 21 million tokens, making it a scarce asset. It has gained popularity among corporate and institutional investors due to its early mover advantage and scalability. However, it remains more volatile than gold or silver but could also have greater upside potential.