ChatGPT 8 Best Investments To Protect You From Inflation, Crypto Included?

Although the month of rising inflation in developed countries seems to be behind us, there are still countries where rising inflation is threatening the local economy and people. Moreover, many economists are predicting higher inflation in the coming months for the US and other countries, especially as winter approaches.

With the declining purchasing power of all fiat currencies, one can at least wonder what they can do to protect their wealth. According to ChatGPT, there are several investment properties that can do this.

Traditional safe spaces

When it comes to traditional investment assets that can hedge inflation, the word ‘gold' pops up. So it's no surprise that the popular AI chatbot ranked precious metals among the top eight investment assets that can protect people from high inflation.

“Gold has been used as a store of value and hedge against inflation for centuries. It tends to maintain its value over time, and its value often rises when inflation increases.

Not long after the yellow metal, ChatGPT placed real estate. “The higher the cost of living, the higher the rent, which can provide a steady source of income,” he explained.

Next on the usual list of safe havens, the chatbot placed US government bonds. Specifically, he said, “Treasury Inflation-Protected Securities (TIPS)” – “designed to protect against inflation.” They adjust to changes in the Consumer Price Index (CPI) and provide guaranteed returns above inflation.

The last one on this list was a little more traditional – stocks. Now, this asset class is more volatile and risky than the ones mentioned above. However, ChatGPT believes that “equities can be a valid long-term investment against inflation as companies often have the ability to raise prices to keep up with inflation and their profits can grow nominally.”

They are not very traditional properties

The rest of the chatgpt options are not as good as expected as seen above and can be classified in the “dark horse” category.

First, it highlighted a broad category of goods. Some are expected – like other precious metals such as silver, but the rest are more traditional – oil and agricultural products, the price of which “increases with inflation.”

ChatGPT has marked collectibles like rare coins and art on the list. This is because they have the potential to “sell at retail value or appreciate over time.”

Foreign exchange is also mentioned in the chatbot. This is particularly compelling as some currencies perform better in certain situations, such as the Swiss franc. During the pandemic, for example, the various strategies undertaken by global powers had consequences for their local currency options.

Last but certainly not least, ChatGPT also mentions cryptocurrencies and Bitcoin in particular. More on how BTC works against gold to hedge against inflation can be found here.

While the overall nature of the primary cryptocurrency is designed to mimic gold to some degree, it takes the metal's properties to another level due to proven scarcity and digital presence. However, Bitcoin is still a relatively new concept that needs to prove itself, which is why ChatGPT highlighted the potential risks associated with it.

“Some people consider cryptocurrencies like Bitcoin to be overvalued due to their limited supply and decentralized nature. But it is important to note that cryptocurrencies can be highly volatile and speculative.