6 Timeless Assets That Beat Inflation and Help You Build Wealth

In today’s economic world, one of the most misleading narratives we often hear is: “Your money grows in the bank.” While it’s true that the money in your savings account might increase due to interest, the real value of that money is often shrinking majorly due to rising inflation. With bank interest rates struggling to keep pace with the soaring cost of living, keeping your cash idle in a savings account could actually be burning a hole in your pocket.

In reality, keeping large amounts of cash idle in your bank account leads to wealth erosion. With inflation soaring and bank interest rates lagging, it’s crucial to explore smarter investment options that not only preserve but grow your wealth in real terms.

So how can you protect your wealth and ensure it grows in real terms? Here, we explore six powerful asset classes that not only guard against inflation but can also help you build intergenerational wealth.

1. Precious Metals: Gold, Silver, and Platinum – God's Money

Gold and other precious metals have historically been seen as a safe store of value. Unlike fiat currencies, they cannot be printed or created out of thin air. This scarcity is what makes them valuable.

Why Invest in Gold and Precious Metals?

• Gold has surged from $400 an ounce in the 1950s to over $2,000 in 2023.

• Forecasts from PrimeXBT predict that gold could hit $10,000 by 2032.

• They act as a hedge against currency devaluation and inflation.

How to Invest:

• Buy Gold ETFs for affordable and secure exposure without holding physical gold.

• Explore mutual funds focused on precious metals.

2. Industrial Commodities: Raw Materials That Power the Economy

Unlike precious metals that store value, industrial commodities create value through their practical utility. Materials like silver, cobalt, nickel, and copper are vital in manufacturing, electronics, energy storage (EV batteries), and healthcare.

Take cobalt as an example. With its importance in electric vehicle batteries, cobalt prices surged from $20,000 per ton in 2012 to over $40,000 by 2022—a 100% gain in a decade.

Direct investment in raw materials isn’t feasible for most retail investors. Instead, consider:

• Stocks of mining companies (e.g., Rio Tinto)

• Mining-focused mutual funds

• Commodity derivatives such as futures and options

3. Safe Haven Currencies: The Power of Stability

In a fiat currency world, geopolitical stability determines currency strength. The Swiss Franc (CHF) is a classic example. Known for its economic and political stability, it acts as a safe haven during crises.

During the Eurozone debt crisis (2009) and the global financial meltdown (2008), investors moved funds to Swiss accounts, driving up the Franc’s value. In early 2023, 1 CHF was worth $1.1074 USD.

Other strong currencies like the British Pound or Chinese Yuan also serve as hedges against weakening domestic currencies. You don’t need a Swiss bank account to invest—Currency ETFs and Forex platforms allow exposure to foreign currencies starting from as little as $100.

4. Sovereign Guarantees: Government-Backed Securities

Ever noticed the phrase “This note is legal tender for all debts, public and private” on a U.S. dollar bill? That statement emphasizes trust in government rather than a gold backing.

Even though fiat currencies aren’t tied to tangible assets, their credibility stems from government backing. This is why government securities (G-Secs) or Treasury bonds are considered extremely safe.

However, always evaluate the creditworthiness of a government before investing. For example, Greece’s 2009 sovereign debt crisis showed how weak governments can collapse under financial strain.

In the U.S., investors can gain exposure through:

• Treasury bills, notes, and bonds

• Direct purchases via TreasuryDirect

• Secondary markets

These instruments offer better returns than bank savings and come with high security.

5. Value Stocks and Dividend Mutual Funds: Equity with Stability

While government bonds are safe, they don’t yield high returns. This is where value stocks come in—providing a balance between risk and reward.

Unlike volatile growth stocks (e.g., tech startups), value stocks represent companies with stable earnings and consistent demand, such as those in industrial metals, energy, or consumer goods.

For retail investors who find stock-picking complex, dividend-focused mutual funds like the Vanguard High Dividend Yield Index Fund (VHYAX) offer a great alternative. These funds provide:

• Steady capital appreciation

• Regular income through dividends

• Diversified exposure

6. Real Estate: The Ultimate Non-Depreciable Asset

Land has been considered an eternal store of value for centuries. From homes and farms to commercial buildings, real estate remains a high-demand asset in any economic condition.

A Bloomberg report noted that despite the 2008 housing crash, home prices tripled between 1992 and 2020. The increasing human population only intensifies demand.

The good news? You don’t need crores to start. Consider:

• REITs (Real Estate Investment Trusts) like Ventas Inc (VTR), which invests in healthcare properties

• Fractional real estate platforms

• Rental properties, where rent covers mortgage and generates profit

Bonus: Collectibles – Investing in Rarity

Luxury handbags, vintage cars, rare art, and limited-edition watches are not just signs of wealth—they are investments in scarcity.

For instance, a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe sold for €135 million in 2022. Leonardo da Vinci’s Salvator Mundi fetched $450 million in 2017. These examples show how rare collectibles can fetch astronomical returns.

For average investors, online platforms like:

• Whatnot (for comic books, action figures, baseball cards)

• Convey and Masterworks (for fractional ownership of collectibles and fine art)

In an era where inflation silently erodes your savings, it is essential to think beyond traditional bank deposits. Whether through gold, commodities, government bonds, value stocks, real estate, or even collectibles—diversifying into real assets is the only real way to preserve and grow wealth over time.

Remember, smart investing is not about timing the market. It’s about time in the market—with the right mix of assets.