Best Inflation Resistant Assets To Buy Before It Gets Worse

ByKen J. Last Update

Given the economic forecast, what are the best things to buy before inflation (or hyperinflation)?

I just read an article this morning, warning of a big jump in inflation.

Last week, when discussing the latest earnings call commentary, Bank of America said “Buckle up! Inflation is here”, and showed a chart of the number of mentions of “inflation” during earnings calls which exploded, more than tripling YoY per company so far, the and the biggest jump in history since BofA started keeping records in 2004.

~ BofA: “Transitory Hyperinflation Ahead”

Inflation is Here

Many of us know full well that inflation is already here, and has been here.

Although it is being hidden as best they can, most everyone is awake to the fact that prices are going up, and way up.

Inflation is pretty much a built-in part of our current economic system. Every dollar that comes into existence is borrowed – eventually leading up to the ‘Federal Reserve’ – a private entity which collects interest on ALL U.S. dollars.

Since more dollars are always coming into the system (the present system would actually collapse without this) there is a sort of built-in inflation. For various and sometimes complicated reasons, some periods of our history (and no doubt our future) involve even higher inflation (than ‘normal’).

Inflation Erodes Purchasing Power Of The Dollar

The effects of inflation include a more rapid erosion of the dollar’s value, or purchasing power, while the resulting prices of things go higher and higher.

The Federal Reserve tries to control inflation (the devaluation of the dollar) in context with the economics of the times. One might say that they are actually manipulating it. Which they are.

Because there is SO MUCH debt now (everywhere), ‘they’ have to keep interest rates (the price of borrowing money) and inflation under especially tight control or else the whole thing goes bankrupt (debt defaults?).

In fact rates have been lowered all around the world to near zero (and negative!). Why? To keep the charade going – to keep the borrowing going – propping it all up. Blowing more ‘air’ into the gigantic bubble…

The question is how long will they be able to control it all, given the gargantuan debt? How long will others buy our debt when rates are essentially (almost) zero here right now? “Full faith and credit” and all that? Ya-right…

Most of you are aware of the MASSIVE government spending we’re seeing. This WILL have an affect on all of us. So what do we do?

The Party Is Almost Over – Say Hello To Inflation

I am not an economist. This is not financial advice. Rather it’s an observation of what I feel is inevitable. The party’s (almost) over. So how do we position ourselves, just in case?

The system was seemingly ready to collapse before the Wuhan virus hit. But since then, we all know what has happened up until now.

Real unemployment in the US is around 25.7% as of this post date. I say “real” because that’s the number according to the way they used to quantify unemployment. John Williams of shadowstat.com keeps track.

‘Main street’ small and mediums size businesses have been, and are, mostly crushed. Many small to mid size businesses are largely damaged or gone.

TRILLIONS upon TRILLIONS have been, and still are, being thrown at the problem. Of course this is all a temporary band-aid to a wound that’s going to require more than a band-aid. TRILLIONS MORE will be spent soon. Shortages are becoming commonplace. Prices for these these things (and other things) are going up .

If you’re holding cash, it’s going to be worth less – perhaps much less in the future as buying power diminishes. So again, what to do? What are the things to buy before inflation?

What Things To Buy Before Inflation or Hyperinflation Gets Worse?

Inflation Resistant Assets

Okay, so, back to the question at hand. If we were to anticipate that at some point in our future real noticeable inflation will kick in, then the prices for many, most, or all goods will likely go up, and up, and up.

So what are the things, the assets, the goods, the products that might be better to get your hands on now, before inflation might go higher or get out of control?

What are the assets that are inflation-proof or inflation-resistant in the context of preparedness and/or financial preparedness?

I’m not suggesting that you go out and start a shopping spree. But it makes for good discussion to hypothesize the practical assets that might be good to have (or invest in) before any onset of real bad inflation (currency devaluation)…

>>This is not financial advice

Financial Investment Assets – things to buy before inflation

In no particular order of perceived importance…

  • Gold and Silver
  • Get out of debt loans that are tied to interest rates
  • Inflation resistant Stocks / ETF’s (which?)
  • Food (any and all)
  • Land (productive farm land, or just about any land)

“Land has always provided wealth for kings, dukes and barons for thousands of years.”

“If you have an adjustable rate ARM mortgage, now is the time to convert it to a fixed rate.”

“The obvious (financial) assets are gold and silver. They are real money that will maintain value through bad economic times.”

Golden Eagle Coin

Preparedness-oriented Assets – things to buy before inflation

  • Plant food producing trees, etc..
  • Seeds, heirloom (in other words, grow some of your own food)
  • Firearms & Ammo (good luck with that these days…)(/sarcasm)
  • Home Canning equipment
  • Food preservation equipment (any)
  • Everyday consumables
  • Work boots and heavy-duty work clothes
  • Alternative energy source or sources

“Security, shelter, water, food, communication. Prepper’s priority list.”

“Wishing one had a pair of work boots or gloves after the money has run out is not the time to start thinking about it.”

Note: With the presumption of inflation, we might simply say that EVERYTHING will go up in price, so this list could essentially include ‘everything’. However I’m curious about what might be especially prudent to acquire, or invest in, before hypothetically high inflation sets in. Hyperinflation is always a possibility too. In other words, might some ‘things’, assets, etc.. go up higher than others and which of them might be a better ‘investment’ now rather than later?

There are lots of great comments below. This post has been updated to reflect today’s headlines, such as “Transitory Hyperinflation Ahead”. They are warning us. So you might want to listen…