ELI5: Explain Like I'm 5

Inflation hedge

Inflation hedge is when you use investments to guard against the decrease in value of money that can happen over time due to inflation.It helps you to protect your money from losing its value. Basically, when you buy things, you want to make sure that your money stays worth the same or more, even after many years. Inflation means that prices on things go up over time, so that means when you try to buy something, it will usually cost more money than it did before. An inflation hedge is like a shield that helps protect your money from getting smaller in value over time. Usually, this is done by investing in something that will go up in value faster than the rate of inflation. This way, when inflation happens and prices go up, your money that you have invested is increasing in value faster than the rate of inflation and will be worth more when you want to buy something than it was before inflation happened.
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