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The economy is struggling, governments are sending money to stimulate it. The magnitude is not in the billions, but trillions. But it's not as if the states haven't been in debt for a long time. Fortunately, states can create money easily. But if money is simply printed on such a scale, one must assume that the value of the money supply in circulation will decrease. So, as investors, we have to ask ourselves what is an appropriate inflation hedge and whether this is a necessity for you. In today's article, we will therefore talk about how to invest in tangible assets and what you should bear in mind.
If you have any more questions on the topic, we look forward to an exchange in the comments!
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"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
Old is gold: My portfolio also contains "modern" additions such as Bitcoin and the like. Cryptocurrencies, Gold or stablecoins are very exciting. However, only as an admixture and for several reasons.
If you want to protect yourself against inflation, a gold ETF can offer easily tradable access to the precious metal. However, if you also want to protect yourself against a systemic crash with a gold investment, you should opt for physical gold in your own vault (or other safe place) instead of paper gold. Because when banks close, the bank safe deposit box is also no longer accessible. The past has shown this time and again. What is currently happening in the area of REITS or blockchain-based gold is exciting! I would be interested to know whether such asset classes would be a conceivable option for you? Let me know in the comments if you would like to invest in real assets in this way!
Parking your money in the bank until better times come with more favourable investments doesn't always make sense. To prevent inflation from taking several percent of your cash holdings each year, you may want to consider inflation protection. There are many ways to invest in tangible assets, as we have shown above. We would be interested to hear what you think about this!
Do you have any more questions or suggestions on this topic?
Leave us a comment there!
"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
4 Responses
Hello Eric
Are gold Verneli enough? I've heard that you can't get rid of these coins because nobody wants them.
How always there with the physical gold (bars)?
If you buy and store gold via Goldavenue, you would have problems getting the gold in case of a system crash, even though it would be mine, right? Where would you convert gold back into cash?
By the way, great homepage and many thanks for your work.
Glg Moni
Hello Moni
Thanks for your positive feedback 🙂 There are various reasons and scenarios to invest in gold.
If you want to prepare for the "worst case scenario" (hopefully it never happens), you should probably have physical gold in a place that is always accessible. A safe deposit box or managed by Degussa, Goldavenue etc. would then, as you rightly say, not be the right place. After the 2nd World War there were such scenarios by the way - also a gold ban.
In general, it can be observed that small quantities (coins/bars) are more expensive than larger ones. This is due to the production. So you get more gold per franc, the bigger the bar is. Should you then really want to pay with it, it is of course easier if it is smaller units. Or you can take a small saw or file and cut off a few grams of gold for the bread at the bakery 🙂
Gold vreneli are 10% copper and 90% gold. So the gold content is not pure, but I do not see a problem here in the tradability.
Bitcoin enthusiasts today would argue, of course, you should use the "digital gold" buy, but that's another topic again 🙂
Much love!
Does it make any sense at all to invest in Pillar 3a if we are assuming inflation? So is investing in tangible assets really the only solution to protect your money against inflation?
Why should it make sense to pay into the 3rd pillar in spite of inflation or a possible threat of currency reform?
Hello, Pascal,
it even makes a lot of sense to invest in pillar 3a. Of course you have to look at how long your investment period (until retirement) etc. is. For example, if you have at least 5 more years to go, I think it already makes sense to invest in securities under the 3rd pillar.
If you really assume strong inflation, it makes little sense (there are of course exceptions) to simply hoard unnecessarily much money in your account. Because there is no interest there, but inflation constantly reduces your assets. If you invest money in securities in the 3rd pillar, which you don't need for the next few years, you can achieve a return that is higher than inflation. This way you can save taxes and inflation is counteracted by the excess return.
Best regards 🙂