It doesn’t really matter where you are in the world today, as almost every country is struggling in some way within the monetary market. There are various reasons behind this and not every country’s struggles are because of the same reason, but without doubt one of the worst reasons is inflation.

It’s the little word that can have such devastating effects on even the most seasoned of investor should they not have a contingency plan to thwart its arrival. Failing to plan is planning to fail and more and more prudent investors are seeking out ways to help them withstand this prospective downturn in their returns.

Everyone knows the profitability potential and understands the risks that are involved within the investment market; such is the nature of the beast. As no investor wants their portfolio to show a loss, a little thought during these times of inflation can go a long way to covering every eventuality. As for business owners and entrepreneurs that depend on their business practice(s) for revenue and investment, during an inflation period, a factoring company that offers receivable financing is a smart measure, it will allow immediate cash flow by converting sales on credit terms. This will help the business and it’s better than opting for a bank loan.

And while no investment is guaranteed, these five opportunities will generally offer the shrewd investor a better than average chance of making a good return on their investment.

1. Gold

The perennial favourite amongst the more discerning investor as time and time again it has proven its credentials as a store of value, gold can do just this because time has shown that when normal investment values take a hit, gold tends to buck the trend and actually increase in value.

Due to this reason, many investors perceive gold as a real store of wealth, which stimulates their interest, leading them to start buying it. This in turn drives up the value, meaning those who already have gold investments are making money and are able to sell at a profit.

2. Property

With the current state of the US economy, there is a super abundance of properties for sale right across the country that the banks have foreclosed on. Buying property at the rock bottom price will give you a great return on your investment when – and it will happen – the housing market finally gets itself back on an even footing.

Until this time of plenty returns, it seems a viable proposition to have at least a minimum property holding that will, for the time being, be supported by other investments. As the economic slide in the US continues, second guessing when it is going to bottom out and making your move then could be a real money spinner.

3. Platinum

Another precious metal that tends more often than not to be good value for your dollar during times of inflationary excess, platinum is a rare metal that is in increasingly high demand and the fact that it is still quite scarce makes it a very attractive asset to add to your portfolio.

As there is a high demand, it is commonplace for platinum to trade above and beyond gold, sometimes as much as double when the world economy is at its healthiest. Although it normally trades slightly lower than gold, it does continue to be a safe bet to invest in this precious metal.

4. Timber

For many years now, timber has demonstrated that it is an exceptionally profitable investment – during the bear market period of 2008, when the S&P 500 lost around 38%, the Timberland Index gained 9.5% – and one which shows no sign of decline in the near future.

It is very difficult, for individuals to invest directly in timber or the land upon which the trees are grown, especially when you consider that the minimum investment is around $5 million and therefore the answer for most individual investors is to buy into stock of corporations that own considerable amounts of timber themselves.

5. Silver

The third precious metal on this list that finds favour with investors is silver and this is predominantly because, just like gold and platinum, it is seen as a relatively safe bet.

As with most commodities, silver has the usual driving forces which dictate its value, but despite this it is still one of the best performing metals in the world. What’s more, if you invest in something like the American Silver Eagle, you can physically have it in your possession, which means that it is readily available if and when you want to sell.

Tags: 2012 best investments, best investments during inflation, inflation, investments during inflation, safe investments during inflation