How do I prepare for the possible inflation of the euro?
Lately there's been a lot of fear being spread about the health of the Euro. I am not panicking, but I'm a bit worried about my savings. So here's my question. What is the best way to prepare for the possible devaluation of the Euro?
Options I'm considering:
Investing my savings in some more reliable resources like Oil, Gold or Silver.
Just converting my balance into some other valuta that is seemingly unrelated, like the brazilian real, or the seemingly stable Chinese yuan.
Ofcourse if everyone in Europe does this the value of the Euro will surely drop. Are there ways to prepare for this without helping the downfall of the Euro myself?
2 Comments
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If you are truly worried about inflation and don't want to export your money to another currency, a good strategy would be to use leverage to purchase an inflation sensitive asset.
The classic example of this in the US is taking out a mortgage to buy a property.
SPECIAL NOTE: I actually don't think inflation is going to be anyone's problem for a while and I wouldn't pursue this action.
You might consider investing in the real sector (stocks). Devaluation of the euro will most likely mean increase in exports outside of Europe. Most of Europe uses Euro or currencies tied to it in one way or another so it will not matter for the internal trade if the currency is devalued or not.
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