3 Inflation-Proof Investments That Could Be Fantastic Buys in 2026

Inflation has been a major headwind for stocks over the past year. High energy, labor, and material prices are squeezing corporate margins, and consumer budgets are tight. As of August, the U.S. inflation rate still stood at 3.4%, well above the Fed's target of 2%.

To rein in inflation, the Fed will need to raise its benchmark rates again. Those higher yields will make it tougher for companies to expand their businesses, and they'll drive more investors to rotate from stocks toward lower-risk, fixed-income investments like CDs and T-bills.

To counter that pressure, investors should increase their exposure to inflation-resistant assets such as gold, silver, and Bitcoin (CRYPTO: BTC). Let's see why these three assets are still worth buying even if rising inflation triggers bigger rate hikes through the end of the year.

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Gold

Gold is a classic inflation-proof investment because it's increasingly scarce and can be easily traded for fiat currencies. Over the past 20 years, the price of gold has risen by 588%, while the domestic purchasing power of the U.S. dollar declined by 35%-40%.

Most people either invest in physical gold or an exchange-traded fund (ETF). The most popular gold ETF is the SPDR Gold Trust (NYSEMKT: GLD), which was launched in 2004 and now manages $141 billion in assets. It holds physical gold bars in its London vaults, and each ETF share represents a fractional stake in those bars. It charges a gross expense ratio of 0.40%.

Gold doesn't consistently outperform the S&P 500 (SNPINDEX: ^GSPC), which has delivered a total return of 738% over the past two years. But it's a reliable hedge against inflation, and it deserves a spot in your portfolio if you expect the U.S. dollar to weaken.

Silver

Silver is another popular inflation-proof investment. Like gold, it can be valued by its scarcity. But unlike gold, silver is used in the production of solar panels, electric vehicles, consumer electronics, and data centers. That's why it's also valued for its utility.

Over the past 20 years, silver's price surged 460%. A massive portion of that rally occurred over the past year, when the explosive growth of the cloud infrastructure and AI markets caused the market's demand for silver to outstrip its supply. Silver miners -- which were struggling with declining ore grades, rising expenses, and tighter regulations -- also produced less silver.

An easy way to invest in that supply crunch is through the iShares Silver Trust ETF (NYSEMKT: SLV), the world's largest silver ETF with over $30 billion in assets. It was launched in 2006 and currently charges a 0.50% sponsor fee. So if you're looking for a more flexible alternative to gold, you should invest in this top ETF or buy some physical silver.

Bitcoin

Bitcoin, the world's largest cryptocurrency, is often compared to gold and silver because it's also scarce. It's still mined with powerful computer chips, and its mining rewards are halved every four years to make it more difficult to mine Bitcoin profitably. More than 20 million of Bitcoin's maximum supply of 21 million tokens have already been mined.

Bitcoin's early mover advantage and scale make it a popular cryptocurrency among corporate and institutional investors. The bulls expect Bitcoin -- like gold and silver -- to become more valuable as expansionary monetary policies debase the leading fiat currencies.

To invest in Bitcoin, you can simply buy it through a crypto exchange or brokerage. If you don't want to deal with private keys, you can invest in one of its many spot price ETFs. Bitcoin could remain more volatile than gold or silver, but it could also have much greater upside potential.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.