Inflation-Resistant Assets Gain Traction Amid Rising US Inflation

The US inflation rate has remained above the Fed's target of 2% at 3.4%, putting pressure on corporate margins and consumer budgets.

To combat this, investors are turning to inflation-resistant assets such as gold, silver, and Bitcoin (BTC) -0.84%.

Gold is a classic inflation-proof investment due to its scarcity and ease of trading for fiat currencies. Over the past 20 years, the price of gold has risen by 588%, while the domestic purchasing power of the US dollar declined by 35%-40%. The SPDR Gold Trust (GLD +0.49%) is a popular ETF with $141 billion in assets.

Silver is another inflation-proof investment, valued for its scarcity and utility in industries such as solar panels and electric vehicles. The iShares Silver Trust ETF (SLV -0.19%) is the world's largest silver ETF with over $30 billion in assets.

Bitcoin (BTC) is also a scarce asset, mined with powerful computer chips and expected to become more valuable as expansionary monetary policies debase leading fiat currencies. While it may be more volatile than gold or silver, Bitcoin could have greater upside potential.