If you find the price of everything is going up, own something with a price. Convert as many of your dollars as possible into products, such as gold or oil or a basket of goods, and when you need to buy something, convert the goods back into dollars. If all prices generally rise, then the price of the products you own will likely rise as well.
Let’s consider if you convert some of your dollars into platinum. If the prices of everything go up 20 percent, then it’s likely the price of platinum went up about 20 percent as well. So if the price of a movie ticket went up 20 percent and your platinum went up 20 percent, then you won’t care as much because you can still afford to buy the same number of movie tickets as before the price increase. Your wealth stayed even with the cost of goods.
You will pay some transaction and tax costs:
- Fee to convert dollars into platinum
- Fee to convert platinum back into dollars (since the movie theater doesn’t accept platinum! – not yet)
- Tax on gain in the price of platinum