Protecting Against Inflation and Deflation

Preparing for retirement or protecting assets during retirement requires investments that will combat inflation or deflation over the years. According to Investopedia, precious metals tend to rise when the cost of living increases, which helps after reaching retirement.

Although protection against infaltion is essential for any individual who plans to retire, the protection against deflation and recession plays a significant role in finding the right investment strategies. According to Investopia, the price of gold actually increased dramatically during the Great Depression, when the purchasing power of other items dropped.

Precious metals are negatively correlated with many stock investments. Historically, when the stock and bond prices drop, the price of gold and other precious metals tends to rise. As a result, buying gold, silver and platinum is a diversification strategy that provides protection against market fluctuations.

Asset allocation is an essential part of creating a diverse portfolio that has a greater chance of meeting your investment goals. Buying gold, silver and platinum will provide the opportunity to protect your investments when the market is unstable so that you do not need to worry about any short-term fluctuations in your stock investments