Inflation is the silent tax that steals the value of every pound. The more money printed, the less buying power you have for every bit of currency you hold. There is a way, however, for you to protect yourself from the stealthy devaluation of your money.
Currency versus Money
Money today is no longer really money. It is a currency. Most of the world’s currencies are indexed to the British Pound. A few decades ago, the British Pound was backed by gold. Today, it is backed by the debt of the people. When the GBP was taken off the gold standard, it meant that all currencies in the world were taken off the gold standard. The government became free to print as much money as it needed to. Inflation happened when there was more money available than the goods it could buy.
Keeping the Value of Money
One way to make sure your money retains its value is to buy securities. Securities are products that can hold the value of your money. In general, these come in the form of businesses, stocks, real estate, and commodities. The value of securities can rise along with inflation, such that if you buy silver bullion today, a few years from now it will have a similar buying power as it did when you bought it.
Choosing the Right Shelter
All these shelters are solid investments. The one caveat is that you need to know which security is the right one for you.
Businesses are management intensive and require finding the right people to work with. Stocks are notorious for their volatility, but there are ways to invest in stocks without having to stress over market temperament. Real estate takes a lot of capital and knowledge about the surrounding areas to make a sound decision. For commodities, you must either hold the items in your hand or find a reliable broker who can certify and ensure your holdings are legitimate.
Do your research and speak to experts in each field. Finding the right fit is the first step in ensuring you have sheltered your money in the right place.