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Elon Musk Recommends Investing In ‘Physical Things’ – Here Are 3 Physical Assets That Perform Well During High Inflation

 

Billionaire entrepreneur Elon Musk recently took to Twitter to suggest investing in physical assets as a way to hedge against inflation. Inflation rates are currently on the rise, leading many investors to seek strategies for preserving their wealth and purchasing power.

So, what physical assets tend to perform well during times of high inflation? Here are three options that investors should consider:

 

Gold: Historically, gold has been a reliable safe-haven asset during times of economic uncertainty. When inflation rises, paper currency tends to decrease in value, while gold’s worth tends to remain stable. In fact, gold prices often surge during periods of high inflation. Gold can be acquired in the form of bullion, coins, or even jewelry.

 

Real Estate: Real estate is another physical asset that can perform well during times of inflation. As the cost of living increases, rental rates and property values tend to rise as well. Investors can earn revenue by renting out properties or by purchasing and then selling properties at a profit.

 

Commodities: Commodities include physical goods such as agricultural products, natural gas, and oil. These assets can also perform well during inflationary periods because their prices tend to increase as the cost of living goes up. Investors can acquire commodities by investing in futures contracts or through exchange-traded funds (ETFs) that track commodity prices.

 

However, investors should be aware that each of these physical assets comes with its own set of benefits and risks. For instance, gold does not generate any income, while real estate may involve significant maintenance expenses. In contrast, commodities may experience fluctuations in supply and demand.

Nevertheless, investing in physical assets can be a smart way to shield against inflation. As Elon Musk stated, “Cash is no longer king.” Inflation diminishes the purchasing power of cash, making physical assets a valuable alternative for investors who want to safeguard their wealth.

 

As always, investors should conduct due diligence and seek advice from a financial advisor before making any investment decisions. With inflation rates on the rise, investing in physical assets can be a prudent approach for those interested in protecting their investment portfolios

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