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Questions tagged [inflation]

For questions that relate to inflation, which is the general increase in the prices of goods and services over a period of time.

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12 votes
6 answers
2k views

Buying gold / silver as a hedge against hyperinflation

I'm becoming more interested in buying gold / silver coins as a hedge against inflation and especially hyperinflation. I know very little about this, and there are thousands of sites on the internet ...
Randy Minder's user avatar
5 votes
2 answers
1k views

Why is there a discrepancy between current inflation rate and I bond rate in the US?

According to https://www.rateinflation.com/inflation-rate/usa-inflation-rate/, the November 2022 inflation rate is 7.11%, but the I Bond rate according to Treasury Direct is 6.89% (from November 2022 ...
HelloDarkWorld's user avatar
17 votes
4 answers
944 views

What is the best way to invest in gold as a hedge against inflation without having to hold physical gold?

What is the best way to invest in gold as a hedge against inflation without having to hold physical gold? Is it possible for a regular person to just purchase shares in GLD?
D R's user avatar
  • 373
13 votes
4 answers
2k views

How much is inflation?

I'm sure it's different every year (and may even differ by country?), but surely there must be a minimum increase salaried workers would have to earn in order to simply break-even, relative to the ...
Nat_Rea's user avatar
  • 8,683
8 votes
1 answer
437 views

Why adjust for inflation annually, as opposed to realising it after the holding period?

Why do investors offset their annual returns against inflation, when inflation isn't realised until the end of the holding period (when the investor is actually spending the money)? An example: ...
Lawrence Wagerfield's user avatar
8 votes
4 answers
793 views

How can I protect my savings against inflation? [UK]

How can I ensure that my savings keep up with inflation, even after any tax due is taken off the returns?
GS - Apologise to Monica's user avatar
2 votes
2 answers
453 views

Why is there more attention on the S&P 500 than on the S&P 500, inflation adjusted, with dividends?

Dividends, like increased stock price, are just another equivalent way for shareholders to gain value (with some tax differences). Many investors reinvest the dividends and so never "see" them. Of ...
Joshua Fox's user avatar
46 votes
11 answers
14k views

Is inflation a good or bad thing? Why do governments want some inflation?

Is inflation a good or bad thing? Why do governments want some inflation?
user avatar
21 votes
8 answers
4k views

Is physical gold inflation-proof?

I always assumed that physical gold is inflation-proof, but my advisor at my bank claimed it is not — unfortunately without going into details. Now I wonder what he meant. My assumption was: If I buy ...
Demento's user avatar
  • 595
13 votes
10 answers
16k views

Should I stockpile nickels?

As the US dollar continues to be devauled the metal content value of US coins will eventually be worth more than the face value of the coins. There use to be silver in US coins but due to the ...
Muro's user avatar
  • 7,575
13 votes
6 answers
1k views

Can you explain the mechanism of money inflation?

Can you explain the mechanism of money inflation in simple words, understandable by non-professional? Where does it come from?
Vladislav Rastrusny's user avatar
6 votes
3 answers
709 views

Where can I invest for the Short Term and protect against Inflation?

I am looking to open some short term savings accounts (Emergency fund, Car fund, etc) that I want to have liquidable, but I may not necessarily touch at all from month to month. I am very worried ...
aceinthehole's user avatar
4 votes
1 answer
399 views

Future value of a compound-interest savings account when contributions are inflation linked

I've got a savings objective to achieve in 6 years and I'm trying to work out the percentage of salary I need to put towards it to achieve it. I am trying to work out how to calculate the future ...
user714852's user avatar
4 votes
2 answers
1k views

High Leverage Inflation Hedges for Personal Investors

I'm looking for an investment that will appreciate against inflation in the US Dollar. I want to be leveraged 10:1 or more. For the sake of argument, let's say I have only $10,000 to invest, which ...
John Shedletsky's user avatar
3 votes
1 answer
449 views

How do I find the average annual inflation between two dates?

I'm trying to figure out the average inflation between 1926 and 2015 so I can subtract it from the cumulative annual growth rate of average annual bond return during that period (5.4% according to ...
nCardot's user avatar
  • 663
2 votes
1 answer
2k views

How to protect liquid assets from risk of hyperinflation

I don't want to freeze my cash in any medium that would require me to look/wait for a buyer, wait for the collective investment fund to cash my shares as they take their allowance of time to cash them ...
SF.'s user avatar
  • 123
1 vote
1 answer
1k views

Minimum Required Nest Egg Formula?

As a follow-up to this question, what is the minimum size of a nest egg to support 30 years of $5,583.33 monthly distributions? I want the $5,583.33 to increase with inflation each month. The ...
random_dsp_guy's user avatar
16 votes
2 answers
11k views

True cost of a mortgage when considering inflation

For the purposes of this question, let's assume the following: Inflation is and will be a steady 2% I am in the 30% tax bracket and there is a home mortgage interest deduction I have a 30-year fixed ...
reo katoa's user avatar
  • 263
15 votes
7 answers
2k views

Is gold really an investment or just a hedge against inflation?

As per the title of this question, is gold something that can really be considered an investment or is it just a useful hedge against inflation? While I can understand the value in having hedges ...
anonymous's user avatar
  • 1,189
14 votes
6 answers
3k views

Should I max or min my affordability on a new home?

Situation: Around 1,000 month disposable between 2 of us. Current mortage outstanding balance is 95k on a 120k property, saving almost entirety of disposable income. Now the situation has arisen ...
Cloud's user avatar
  • 3,655
11 votes
3 answers
652 views

How fast does the available amount of gold in the world increase due to mining?

How much new gold is injected into the economy of the world due to mining activity as a percentage of the already available gold? In other words, what is the annual increase in the amount of gold that ...
D R's user avatar
  • 373
7 votes
2 answers
2k views

How does a monthly inflation rate work?

I'm struggling to understand the following inflation numbers for South Africa given here: http://www.tradingeconomics.com/south-africa/inflation-cpi Year Month Inflation 2015 Jun 4.7 2015 Jul ...
Simon Streicher's user avatar
6 votes
1 answer
396 views

How to determine a reasonable rate of inflation assumption for long-term care?

Would it be reasonable to project that the cost of long-term care and long-term care insurance in the US will go up as fast as health-care inflation, or at some rate closer to the general rate of ...
user avatar
3 votes
2 answers
388 views

Understanding annuities with respect to Term Life insurance

I am financially well to do. I have Term Life insurance (along with high 6 digits in savings) that will protect my kids. I am considering protecting myself and guarding against outliving my assets ...
riya's user avatar
  • 1,245
3 votes
3 answers
435 views

Estimating nest egg and inflation

First a couple paragraphs for me to lay out my understanding and then my actual question. It is often reported that one can estimate how much they need for retirement by taking their current expenses ...
Jagerber48's user avatar
3 votes
4 answers
8k views

How to calculate cash loss over time?

For example, I got £100 few months ago and I didn't spend them - just kept them in my drawer at home. I understand that those £100 from few months ago is not worth same £100 but it is less today. How ...
Lukas Greblikas's user avatar
2 votes
2 answers
158 views

Why compare asset performance using returns, instead of using change factors?

Why do investors compare the returns of assets as opposed to the change factors of assets? E.g. comparing 6% / 4% instead of 106% / 104% to get the comparative performance of two assets. AFAIK ...
Lawrence Wagerfield's user avatar
0 votes
2 answers
250 views

How inflation affects returns and dividends

How inflation is linked to returns AND dividends? We know that adj returns are (1+return)/(1+inflation) -1 But how do we account for dividends? Suppose: 10% annual return 3% inflation 4% dividend ...
Saverio's user avatar
  • 21
0 votes
1 answer
126 views

Why are the SIPC and FDIC limits not increasing with inflation?

Social Security benefits increase with Inflation. So I am wondering what prevents law makers from making FDIC and SIPC limits increase with inflation as well?
puzzled's user avatar
  • 1,016