A ‘hidden tax’ on Americans: US dollar drops 10% in historic slide. Why your money buys less now, and how to protect your portfolio

It's no surprise that life is getting more expensive in America, and the impacts have already been felt in meaningful ways across the country, from grocery bills to travel costs.

A weaker dollar makes imports more expensive, which pushes up the prices of everything imported. Food, fuel and so on. This compounds with affordability issues that've already been felt, such as the inflationary effects of rising oil costs.

The greenback has fallen in recent history as well, with a "strange sell-off" that saw the U.S. dollar drop by 9% at the beginning of 2025 (2). The drops could be particularly harmful to investors, especially those whose assets are tied to the dollar's value (3).

What a weak dollar does at home and abroad

First and foremost, imported goods will become more expensive for American consumers and businesses. That will directly contribute to higher prices and inflation.

This could benefit domestic products by making foreign imports less competitive, but it will also raise costs for consumers traveling abroad and for companies that rely on raw materials or components (4).

Additionally, for Americans traveling overseas, money won't stretch as far. With the dollar down as much as 10% to 17% against the Euro or the Swiss Franc, travelers in those regions will feel the pinch in their wallets.

But the impacts don't stop at vacations.

Many everyday goods, like coffee, will rise in price. Coffee alone jumped nearly 19% (5) over the past year, as reported by ABC News, with currency fluctuations and supply pressures contributing to the increase.

But for certain businesses, a weak dollar can have some benefits.

For larger multinational companies, overseas earnings become more valuable when converted back into U.S. currency — companies like Coca-Cola and Philip Morris have already pointed to "favorable currency" impacts (6).

That said, not all businesses are multinational. Smaller, domestically-focused businesses are going to feel this as a squeeze, especially if they need to import goods for their products.

How to protect your buying power

Some economists believe the dollar decline is permanent. Harvard economist Kenneth Rogoff argues that the currency has been on a prolonged "bull run" and could fall further over the next several years — potentially by another 15%.

If that plays out, Americans could face a prolonged period where their money is steadily losing purchasing power.

So how do you protect yourself from the fall of the greenback?

If the dollar continues to lose ground, simply holding cash or assets tied to its value could weaken your purchasing power. That's why some investors look beyond traditional portfolios to assets that can hedge against currency value drops.

Here are some alternative assets to consider instead.

Worth its weight in… stability?

Gold can enhance portfolio stability primarily through low correlation with traditional assets like stocks and bonds, so it behaves a bit differently during market volatility.

A study by Flexible Plan Investments even found that adding just 5% allocation to gold improved risk-adjusted returns in a traditional 60/40 portfolio, resulting in lower volatility over 3-, 5- and 10–year periods (7).

One way to get gold exposure while also reaping tax benefits is through a gold IRA with Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the potential stability of precious metals.

For those concerned about long-term currency weakness or economic uncertainty, it can be one way to diversify retirement savings beyond traditional assets.

To learn more, you can request a free information guide that also outlines how qualifying purchases get up to $10,000 in free silver.

Build income beyond the dollar

While gold is often seen as a way to preserve wealth during periods of currency weakness, it doesn't generate income. That's why some investors also look to real estate — an asset class that can offer both potential appreciation and steady cash flow.

Real estate even outperformed the S&P 500 over a 25-year period, particularly in the commercial sector (8) — with annualized returns of 10.3%.

You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100 and potentially earn monthly dividends.

Invest in a blue-chip property

For investors who want to go beyond entry-level real estate and tap into more curated opportunities, there are also platforms focused on higher-end rental properties.

Rental real estate has long been a cornerstone of wealth-building portfolios, accounting for a significant share of holdings among high-net-worth investors. But the time, capital and operational demands of owning property outright have traditionally kept many on the sidelines.

That's where mogul comes in.

Founded by former Goldman Sachs real estate professionals, mogul focuses on the top tier of single-family rental properties across the U.S., selecting roughly the top 1% of opportunities. The goal is to provide access to institutional-quality real estate at a fraction of the typical cost.

Each property undergoes a rigorous vetting process to target strong returns, even in more conservative scenarios.

The platform reports average annual IRRs of 18.8%, with cash-on-cash yields typically ranging between 10% and 12%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

For those looking to take a more hands-off approach, getting started is relatively straightforward. Investors can browse available properties, complete verification, and begin building a real estate position in just a few steps.

Consider a finer alternative

Unlike equities or fixed income, blue-chip artwork tends to derive its value from scarcity and demand, not currency strength.

According to Artprice, an international database of art valuations, blue chip art has delivered an annual return of 8.9% over the past 20 years (9).

One approach gaining traction combines blue-chip art with other scarce assets, such as gold and bitcoin — categories that have historically moved independent of equities and, in many cases, of one another.

Platforms like Masterworks are helping make that kind of exposure more accessible, offering investors a way to tap into museum-quality artwork alongside other uncorrelated assets.

The goal is to build a more balanced, "all-weather" portfolio. In fact, this type of model would have outperformed the S&P 500 by 3.1x from 2017 to 2025, according to backtested data.*

By blending assets with different drivers of return, the strategy aims to enhance diversification while still pursuing meaningful appreciation.