As the government runs trillions of dollars into deficit, many are concerned about inflation.
But if you want to protect yourself against inflation, there are a few things you can do.
On the more conservative side, you can buy government I-bonds. I-bonds pay a low interest rate, but the rate is added on to the rate of inflation, and together they make up the total interest rate of the bond, which will help you protect the buying power of your conservative money.
Another idea to protect against inflation is buying gold. When inflation rates rise, so do gold prices. Buying gold right now, though, may not be such a good idea, because the price of gold is so high.
A third way to battle inflation is to buy commodity funds. There’s two reasons for this: One, as inflation increases, commodity prices tend to go up; second, there’s a demand side to the funds – as the world recession starts to end, the demand for commodities will likely go up, driving up the commodity prices.
