The argument over inflation has reached fever pitch as investors turn to gold, TIPS and index funds to diversify their portfolios and beat the specter of declining purchasing power. However, if inflation fears are not realized, these three investments still serve as good ways to diversify your portfolio in a difficult economic climate.Gold has historically been one of the investments of choice for people seeking to hedge against the loss of the purchasing power of paper currency. Shares of iShares COMEX Gold Trust (IAU) and SPDR Gold Shares (GLD) represent a direct investment in the price of physical gold bullion, stored in protected locations. These funds do not invest in equity securities or complicated derivatives -- just the real deal. An investment in IAU or GLD also allows investors to take a stake in physical gold without state of the art security and a giant vault.
Diversify to Fight Inflation
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.