Posted by forex at 12:38 AM
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1. Invest in gold and silver. Both precious metals have been a traditional store of value in economic crisis. Take physical possession of gold and silver as funds and stocks that rely on them may go bankrupt if currency collapses.
2. Invest in hard goods. Fine art, antiques, classic cars and other rare items hold value through time in any stable currency that emerges. Remember with art and antiques both demand and rarity contribute to value. A Van Gogh or Rembrandt in the multi million dollar art world is rare and has a strong world wide collector demand. My 5 year olds one of a kind crayon drawing is as rare as any fine work of art, but has no demand and so no value to a collector of art. Prints from famous artists may have collectors demand, but are usually not rare and thus of little long term value.
3. Buy assets that are income producing. Rental property is a good example. Your personal residence is not always an asset and not income producing. A good single family home or apartment that has rental demand is a good real estate hedge for inflation as well as a safe place in case of a currency collapse. As the dollar or other currency is inflated and prices rise, rent should rise as well. The same is true for ownership of a business that produces goods that are in demand. As raw fgoods become expensive and prices rise the amount you sell an item for rises as well. It is a safer place to put money than just savings at a low fixed return.