sounds reasonable. but it is a little un-practical. i can have a gold bullion lying around and do not need to care about managing out. unlike a commodity basket. and buying a financial product on such basket scares me. eventually there is a financial company behind it and ... well ...
this topic keeps coming up each week. the best answers i have seen so far have been stating at the moment there is biflation and there will be inflation and the explanations for why have been explained in previous posts. the main reasons are stimulus package, printing more money off, lack of competition due to business closure, reduction in output due to unemployment and business closure, rising commodity prices etc.
Have noticed some inflation in other goods (men's clothing). Suspect that there is an attempt to maintain business solvency by raising prices to make more per unit sold. Idea being that since credit is gone those who would have made impulse buys who can't really afford it previously won't buy at any price. So that leaves those left standing who are solvent who can afford to pay MORE. Would suspect the thinking now is that the only people buying are those who have the means and NEED to buy (a non-discretionary discretionary purchase ?!?). Keep inventories low and make the most on what you can. Only problem is that in deflationary spiral, you don't buy unless the price is LESS. For low priced discretionary goods, who cares. But for the rest of the stuff, no chance. Noticed that prices on suits at Jos. Banks have almost doubled. (following gold - sorry!). Let's make up on margin what we couldn't do on quantity. Good luck with that! Last time I checked, unemployed folks don't need suits. I ain't buying. I can wait.