SAFER THAN GOLD

Some argue that gold isn’t a consistently dependable hedge against inflation. However, Treasury inflation-protected securities, or TIPS, are tied to the U.S. consumer price index. If the index inflates, your principal grows. If the index deflates, your principal shrinks… But when TIPS mature, you receive the CPI-adjusted principal or the original principal, whichever is greater.

In addition, the interest payment on TIPS rises with inflation. They’re currently yielding around 6%.

Crux note: If you’re interested in taking action on this idea, consider the iShares TIPS Bond ETF (TIP).