Inflation protection. Today we live in a low inflation environment and some economists argue that we are entering a deflationary period. However, that was not always the case, and unlikely to be always the case. Inflation-linked (IL) bonds, real estate, and commodities provide an inflation hedge. In some markets used to high inflation such as China and India, Money Holders choose to put a significant portion of their wealth into gold. Notably, the demand for gold in India and China is also driven by cultural preferences as well; see Experiential Needs below.