Survey shows some differences depending on location and demographic
With inflation soaring, Canadian investors are seeking alternatives to cash with some deciding against traditional hedges.
A new survey shows that one in four have invested in – or plan to invest in – real estate (14%) or gold (10%) with Bitcoin taking third place (4%) ahead of silver, real return bonds, and Ethereum.
The GoldRRSP.ca poll also shows some regional variations with those in British Columbia most likely to invest in real estate as an inflation hedge (18%) while those in Atlantic Canada favour gold (19%).
Women are more likely to prefer real estate than men, younger investors (under 35) are most likely to see gold as the best inflation hedge.
While real estate, precious metals, and cryptos are leading the inflation hedges, real return bonds are becoming less popular according to the research.
"This new survey indicates that many Canadians are embracing investment strategies and asset classes that aren't conventionally understood to hedge against inflation,” said study co-author Liam Hunt. “Whereas RRBs and fixed-income assets were once seen as the default form of inflation insurance, so to speak, today we see more and more Canadians allocating some of their wealth to tangible and intangible alternatives, such as real estate, precious metals, and cryptocurrency.”