As economic uncertainty continues and government spending skyrockets, some experts have offered advice on how best to prepare for what they see as an inevitable rise in inflation.
According to the National Inflation Association (NIA), the smartest way to shield one’s net worth from the damaging effects of rising prices is to do away with U.S. bonds, treasuries and other dollar-denominated assets.
Due to uncertainties surrounding the stock and the real estate markets, NIA also suggests precious metals, especially gold and silver, will become an ever more attractive class of assets to invest in, given their liquidity and tradability.
"Gold and silver have been accepted as real money for thousands of years and could replace the U.S. dollar as the ultimate safe haven for Americans to store their money," the association said.
Because inflation leads to rising prices of food, clothing and other necessities, it may also be a good idea to stock up on canned foods, bottled water, medicine, toothpaste and first aid products in case government imposes price controls that would lead to shortages, it says.
In times of economic hardship, some people have moreover benefitted from planting their own gardens or starting a farm.
NIA concludes its inflation warning by saying that those who have debt should try to refinance it into smaller monthly payments over a longer period of time and should not loan money to anybody given that inflation increases the real value of debt.