US consumer prices rose 6.8% in November, marking the fastest pace in 39 years. And while the stock market continues to largely ignore inflation concerns, many well-known investors have been busy sounding the alarm.
Rich dad poor dad author Robert Kiyosaki is one of the most vocal.
"The collapse and depression is coming," Kiyosaki tweeted earlier this week. “It is time to get richer after the fake inflation failures. Be aware. Take care of yourself."
No doubt, Kiyosaki has made similar calls in recent months that haven't exactly worked. In September, he told Kitco News that "the biggest accident in the history of the world" would occur in October.
But Kiyosaki doesn't back down from his ultra-bass stance. In fact, you are doubling down on your favorite assets to fight inflation.
"I'm buying more gold, silver, Bitcoin, ethereum, rental real estate, and oil," he wrote in a tweet last month.
For those who share Kiyosaki's concerns, let's take a quick look at these inflation hedges. It might be worth investing in some of your extra money.
Gold and silver
The famous author is a long-time advocate of precious metal investing. And it's obvious why you're still hitting the table with the two most popular: gold and silver.
Gold has helped investors preserve their wealth for centuries. It cannot be printed out of thin air like fiat money and its value is largely unaffected by economic events around the world.
Silver can also be a store of value and a hedge against inflation. Also, silver is an industrial metal. It is widely used in the production of solar panels and is also a critical component in the electrical control units of many vehicles.
You can buy physical gold and silver at your local bullion shop. Or you can look at large-cap miners like Barrick Gold, Newmont, and Wheaton Precious Metals.
If gold and silver prices go up, these miners are very likely to prosper.
Bitcoin and ethereum
Some consider Bitcoin to be the new gold. And Kiyosaki likes it too.
When bitcoin topped $ 60,000 in October, the author tweeted that the future of cryptocurrency is "very bright," but he was waiting for a drop before investing more.
Well, Bitcoin has certainly retreated since then, currently trading at about $ 47,660.
Kiyosaki is also buying ethereum. While ethereum is not as big or as popular as bitcoin, its use in peer-to-peer lending, NFTs, games, and stablecoins means that it is something that crypto investors should not ignore.
You can buy bitcoin and ethereum directly.
Today, many exchanges charge up to 4% in fees just to buy and sell cryptocurrencies. But some investment applications charge 0%.
You can also invest in companies that have been linked to the cryptocurrency market.
HIVE Blockchain, for example, mines bitcoin and ethereum. The shares are up 55% to date.
There's also Coinbase, which runs the largest cryptocurrency exchange in the US With 7.4 million users transacting monthly, the company made $ 1.24 billion in revenue in the third quarter.
To be sure, Coinbase is currently trading at $ 270 a share. But you can own a part of the crypto exchange using a popular stock trading app that allows you to buy fractions of shares with all the money you are willing to spend.
Real estate
Owning real estate has historically been one of the most effective ways to hedge against inflation and earn passive income.
And these days, you don't have to be a homeowner to do it.
There are many publicly traded real estate investment trusts that offer generous cash distributions to investors. These companies own real estate that generates income, collects rent from tenants, and then passes the money on to shareholders in the form of regular dividends.
Realty Income, for example, has been acquiring and managing commercial properties for more than five decades. It earns rental income from long-term net leases and pays monthly dividends to investors.
You can also look outside of the stock market.
For example, some popular investment services enables you to block a steady stream of rental income by investing in premium commercial real estate, from R&D campuses in San Jose to industrial e-commerce warehouses in Baltimore.
Energy
One of the surest signs of rising inflation is the rebound in commodities that we saw earlier this year. In fact, commodity prices are commonly believed to be a leading indicator of inflation.
So it should come as no surprise that oil, the world's most traded commodity, is also on Kiyosaki's list.
The price of crude oil has fallen in the last month, but it is still up more than 40% so far this year.
Unsurprisingly, strong oil prices benefit oil producers. So far this year, investors have enjoyed big benefits from names like Chevron (40%), Exxon Mobil (51%) and ConocoPhillips (84%).
That said, investing in commodities is a particularly volatile venture.
If you'd rather invest in something without the extreme ups and downs of stocks, cryptocurrencies, and commodities, take a look at a few. alternative assets that go unnoticed.
Traditionally, investing in things like exotic vehicles or litigation financing or even maritime financing have only been options for the ultra-wealthy, like Kiyosaki.
But with the help of new platforms, these kinds of opportunities are Now available also for retail investors.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
