Monetary Assets and Non-Monetary Assets

Within the topic of inflation, we have monetary assets and non-monetary assets.

Monetary assets are any kind of asset that is measured in dollars. If you have cash, then you are vulnerable to inflation. If you have stocks or real estate, you’re vulnerable to inflation.

Since they’re all based on the dollar, then they’re vulnerable to inflation. Non-monetary assets are not vulnerable to inflation. An example of a non-monetary asset is gold (or any mineral resource). You can invest in gold and be less vulnerable to inflation.