Investing for high inflation

Discussion in 'Economics' started by misterkel, Mar 29, 2021.

  1. %%
    Good points;
    +good hits. QQQ has done well over 20 years,even though MAR looks a bit bearish. Shotgun shells havent gone up much in TN, except premium turkey load have always been HIGH.
    But good thing about capital markets;
    reloader co got in business .Good For target practice/varmints/copper clad,factory reloads.
    You can buy a $40,000 auto + a 1,000 gun + 40 year$ later gun will work better + be worth more than the auto..............................................................................................Ammo is among the best fun investments/more bang for your buck:caution::caution::caution::caution::caution::caution:,:caution::caution::caution:
     
    #11     Mar 29, 2021
    MarkBrown likes this.
  2. Fintrader

    Fintrader

    Gold and property
     
    #12     Mar 29, 2021
  3. #13     Mar 29, 2021
    Fintrader likes this.
  4. Highly unlikely.... considering the price of gold "only about doubled" from say '33 through the Weimar period.
     
    #14     Mar 29, 2021
  5. ?
    The hyperinflation happened in 21-23.
    Holders of gold had real money which people were very willing to exchange real goods for instead of the weimar currency.
    It's a classic scenario, much like having USD in Venezuala makes you wealthy.
     
    #15     Mar 29, 2021
    ET180 likes this.
  6. Correct... if you HAD gold during that period... but how do you get the gold to protect yourself from the hyperinflation? Germans would have had to "cash out" all of their belongings, likely into DM, then buy gold with it. Few would have done that. Those that had gold, likely had a relatively small percentage of their wealth in it, much as many do today.

    With the currency "deflated to nothingness" gold and other hard assets would still have value. The gold wouldn't have made them rich (other than compared to everyone else who'd been bankrupted)... but the relative value of their wealth would have been preserved to the same extent as the percentage of their wealth they held in gold.
     
    #16     Mar 29, 2021
  7. kmiklas

    kmiklas

    Traditionally it's been physical gold--hold the metal. Note that had problems actually selling the metal at highs and lows: the market makers and coin shops won't part with their gold when it's low, and won't buy when it's high. It's OTC, without NBBO, so they have no obligation to make the market. Also, theft and loss are real issues.

    A gold ETF might be an option, but there's a massive spread between the LME spot and market price. You'll pay at least a USD200 premium on the metal now. It makes me a little nervous; I wonder if these ETFs are actually buying the metal to cover their funds. There's some voodoo going on here, and I wonder if JPM et alia are pulling strings again.

    Commodity gold futures, including gold, silver, copper, but also other solid commodities.

    Beyond that, I'd say a basket of boring, uninteresting essential equities like utilities. In my mind they're one step from gold. Stable, with a steady demand--Peeps will need electricity in the future, right? Perhaps buy an ETF to add a little diversity and hedge some risk out.

    Out of the fixed income markets, when Inflation hits, the Fed will raise rates, which decreases bond prices, and causes yields to rise. So you could invest with this in mind, like shorting a bond price ETF, going long on a bond yield fund.

    Diversify across these ideas. Above all, don't hold dollars or any currency--unless you're playing the Forex arbitrage game in an inflationary environment XD. If so, may the force be with you!

    (My opinion only--I'm not licensed to give advice. Past performance does not guarantee future profits. Buy low, sell high)
     
    Last edited: Mar 29, 2021
    #17     Mar 29, 2021

  8. Yeah, I think Jews had a tendency to hold their wealth in gold. Hence, when the hyperinflation hit, they were already there. They then had a lot of wealth while most Germans lost everything, leading to resentment and ... well, we all know how the story goes.
     
    #18     Mar 29, 2021
  9. kmiklas

    kmiklas

    Ammo is troublesome to resell.
     
    #19     Mar 29, 2021
    murray t turtle and sysdevel99 like this.
  10. MarkBrown

    MarkBrown


    bullets can take anything of value from anyone - no other asset can do that.
     
    #20     Mar 29, 2021
    murray t turtle likes this.