My son’s financial advisor says gold is not really a hedge against inflation; however he seems to take the longer view. When paper currency becomes volatile what else besides commodities can one turn to?
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What is your son’s financial advisor selling? Betcha that’s what he thinks is best. Ha.
I like silver at this time. Lots of industrial uses and relatively cheap compared to gold. Should be a hedge against inflation in the long run. Best thing to do is get mortgage free to make sure you have shelter. And stock up on food etc.
Remember when a first class stamp cost 3 cents? Remember when gasoline and hamburger cost less than a dollar? Well that’s your fiat currency and inflation at work-and at mostly low inflation rates with some double digit exceptions.
And the stock market is already overpriced. So precious metals, land, food stocks, and ammo etc. that’s about it. Balanced portfolio-when I was a financial advisor-was considered prudent to have around 10% precious metals.
In 1913, 1/20 oz of gold cost $1. So that’s $20/oz. Now it’s over $2000/oz. After a big financial crash, CASH will be king for a short while, shortly thereafter cash won’t buy nearly as much. And we know they will try to ban cash eventually—too easy to have black markets and avoid taxes.
I warned him that his advisor was a BIG stock market investor. Over the last 100 years his philosophy is solid; future: ????
***I like silver at this time***
I wholeheartedly agree! I advised my son of such - and to stay free of debt! I said 'commodities' to hedge my bet. ;^) I have generally agreed with controlled inflation since WWII; it seems to have led to overall prosperity. Can't help from feeling a bit manipulated, though.
***After a big financial crash, CASH will be king for a short while, shortly thereafter cash won’t buy nearly as much. And we know they will try to ban cash eventually***
Good advice. I guess I am positioned appropriately - for now. Gotta run... sorry for the brevity. :)