With inflation rising, what gift can you give your partner?learn more


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With inflation rising, what gift can you give your partner?learn more

With inflation rising, what gift can you give your partner?learn more

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It’s Valentine’s Day, and there’s no better gift than securing your loved ones and family’s finances. Financial gifts express how much we truly care for our loved ones, serve as guardian angels for positive change in their lives, and increase their financial freedom, empowering them in the long run. However, when it comes to giving gifts, what really matters is the idea behind a certain gift. So, at a time when inflation is high, here are some financial gifts to consider for your partner/wife before this Valentine’s Day.

So the rule of thumb is to reduce your cash holdings and move to real assets is a core principle in beating high inflation. “Whether inflation is high or low, it affects the real return you get from any investment, so it’s always important to keep an eye on inflation,” said Kush Vatsaraj, tax advisor at Vatsraj & Co.

gold

Gold is not just a precious metal, especially in India. It holds considerable sentimental value in the hearts of millions of Indians. Well, talking about touching hearts, gifting gold to your partner in the form of sovereign gold bonds, gold ETFs, and/or gold savings funds will definitely accomplish that.

“Typically, gold is considered one of the traditional hedges against inflation and volatility (eg, the price of gold in 2020 compared to most other asset classes that have lost value). One should always use a portion of their portfolio with for gold,” explained Vatsaraj.

cryptocurrency

You can gift cryptocurrencies or non-fungible tokens (NFTs) to your wife or partner through a cryptocurrency exchange. If you are not an existing investor, you will need to open an account after completing KYC. Once in, you can buy digital currency and send it to the wallet address of the person you want to gift. Some exchanges, including Coinbase, Binance, CashApp, and Robinhood, also allow their subscribers to buy crypto gift cards.

Vatsaraj said: “Proponents of decentralization and cryptocurrencies are skeptical of the intrinsic value of fiat currencies, blaming inflation on government oversupply and uncontrolled printing. As a result, cryptocurrencies have become an inflation-proof alternative. Investing, especially for a new generation of investors.”

Both gold (in the form of jewelry or coins) and cryptocurrencies or NFTs make great gifts for your partner and can also help them fight inflation. However, when it comes to gold, the mentality of Indians is to buy rather than sell, so it may be easier to actually sell the physical gold by holding a gold ETF in due course.

In addition to this, commodities (including commodity ETFs), index funds, inflation-indexed bonds, and real estate (or REITs for investors with less capital) are popular options for fending off inflation.

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