Golden opportunity: Mint money as inflation climbs

STRIKE GOLD: Tangible assets like commodities or precious metals are always a good bet.

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Keywords: Investment, Gold

New Delhi: Have rising prices affected your month-end budget hard? Do you feel your savings are diminishing? Surprisingly, there are ways to make money in these hard times of rising inflation.

“Invest in a situation which is contrary to the effect of inflation. Inflation raises prices, interest rates raises prices. So we go into something that is demand driven - utilities. And things that people are going to need on a day-to-day basis. So you should be invested into a product or an asset class that gives you inflation plus a little more,” says investment analyst Kartik Jhaveri.

The traditional remedy for inflation is gold. When inflation soars so does gold. Tangible assets like commodities or precious metals are always a good bet as anything you buy will cost more later.

While inflation has accelerated by six per cent since November, gold on the other hand has surged by close to 34 per cent in the last one year.

And another investment option is equity. With companies driven by consumption demand like power, gas, electricity and FMCG leading the pack.

“Things like food and beverages which we are going to consume - these are companies who have been historically growing at say a 15 to 20 per cent rate of return, or a rate of growth in the same light that will keep continuing,” says Jhaveri.

So stop worrying about your expenses and instead concentrate on some serious investment options.