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What do you think is the better hedge against inflation?
Walkerfan
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As our fiat money loses strength…
“I may not believe in myself but I believe in what I’m doing” ~Jimmy Page~
My Full Walker Registry Set (1916-1947)
What do you think is the better hedge against inflation?
This is a public poll: others will see what you voted for.
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PCGS Morgan CC Dollars...
Great poll...just my two cents...
CC
Rare coins are a market that grows when more dollars chase the assets. Gold and silver are somewhat internationally tied to stronger principles. The one caveat would be real rare & desirable coins and not necessarily plain vanilla collectibles. Stuff collected by people hurt by inflation vs stuff collected by people shielded by inflation where their money compounds
11.5$ Southern Dollars, The little “Big Easy” set
Where is the choice for crypto??
Stock market. PMs.
Almost anything but collectibles that are bought with disposable income. If it costs $15 for a loaf of bread, how much money is left for luxuries? Especially when half the population, the collecting half, is retired and living on fixed income and savings.
If gas goes to $10 per gallon, I guarantee that I'm buying fewer coins. And when my property taxes double or triple, I may have to sell some.
How about some of the Lone Ranger's silver bullets?
That’s what I was thinking, but then I assumed the intent was an environment of moderate inflation, with a normal economy. With this I’m torn, but leaning towards bullion. With hyperinflation and a stagnant economy, bullion is definitely the way to go.
Cryptocurrencies more than any in the poll.
Inflation ain't real as the indicators do not account for digital deflation in all aspects of everything.
Yes, my gas has gotten cheaper.
Inflation year over year is higher than at anytime in 30 years. Could you tell me what technological deflation happened in the last 12 months?
Is there an opening on the Council of Economic Advisors?
I like to think of coins as a hedge with benefits.
LIBERTY SEATED DIMES WITH MAJOR VARIETIES CIRCULATION STRIKES (1837-1891) digital album
Buy the rare coins now and for the next 12 to 18 months. Once the tide begins to recede you’ll enjoy higher returns.
Who will you sell to? When inflation gets this high most everyone that was a coin collector will be in the same boat.
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
In a hyperinflation world, the best asset is a fixed rate property loan. Your TV is worth $8000, your laptop is now worth $10,000, your grandkids Barbie doll is $1000. You sell a few items and turn around to your bank and tell them you'd like to pay off the rest of your mortgage.
Commodities and Stocks are 2nd and 3rd best inflation hedges. Crypto is the million dollar question. In my opinion if the stock market sells off, so does crypto.
Gold & Silver bullion is the best hedge and also the most liquid. None of the other choices were even close.
I would expect a price collapse at that point. I'm not sure why so many people think that a luxury item bought with disposable income is going to hedge anything. Is your $5000 Coach purse going to go up in value? Why is a coin a less optional purchase than a handbag? They are seeing this with their heart.
^ This
USAF (Ret) 1974 - 1994 - The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries. Remembering RickO, a brother in arms.
Rare coins have a much wider buy-sell spread when compared the AGE's. Also, most rare coins trade in a thin market. Try to sell a proof two cent coin to your local coin shop and you'll get a low ball offer. To get the most for your coin you'll often have to put it in an auction and wait a couple months to get paid by the auction house after they subtract their fees. AGE's are easier to price compared to most rare coins such as rainbow toned silver dollars or a rare date half dime.
Worry is the interest you pay on a debt you may not owe.
I will go with the gold and silver bullion. Very liquid and hedge against inflation. Cheers, RickO
Setting yourself up to live off the grid!
I think my next move is going to be to build a nice Greenhouse.
I've always wanted to do that. And a windmill.
Gold and Silver bullion coins. Very Liquid, easy to manage / track value, affordable, global market, high demand. Most liquid thing on eBay / shows.
There are bullion dealers who actually sell those silver bullets, so they are indeed available… although likely not used by the lone ranger himself.
I agree and it worked well for the Pogues.
“I may not believe in myself but I believe in what I’m doing” ~Jimmy Page~
My Full Walker Registry Set (1916-1947)
https://www.ngccoin.com/registry/competitive-sets/16292/
Digital advances make it so that many can do work from home and not commute making the price of gas irrelevant for those.
All I see is deflation because of advances in digital technology. The old (inflation) guard can't factor in the giant deflationary force of the iPhone or the internet.
LOL at me all you guys want. Inflation ain't an issue, but go on worrying about it if you must.
" All I see is deflation because of advances in digital technology."
"Inflation ain't an issue, but go on worrying about it if you must."
Wow. Glad we got it all straightened out now.
My son made me silver bullets for my .357
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
As silver rounds and bars tend to have a premium for the stamp or design, I think raw scrap morgans are the way to go for future silver value.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
Altho inflation can be sighted for many products as done in this thread, overall I see deflation. The cost of running a business is so much lower than 20 years ago. Start up costs are very low for many "internet" businesses.
The only reason I mentioned "inflation" is because sooooo many of you are worried about it, and for nothing.
I'd be very skeptical about Cathie Wood, or anything she says. Her fund has a worse return than the S&P this year and she only became famous for being lucky and going heavy on investing in Tesla. You gotta ask yourself, what great fund manager ever became famous after the age of 65? If she was good you would have heard about her 20+ years ago. Michael Burry shorted the housing market at 35ish. And he was the same one that went long Gamestop before it went insane. (He of course sold way too early but still)
I'd be very skeptical about old dudes pushing inflation and trying to sell you gold LMAO!!!!!
I'm not trying to push gold. However, you are the only person in the world who doesn't believe in inflation THIS YEAR.
I also don't preclude the deflation issue. Japan is my model for this.
You make some accurate points, but it isn't universally accurate. The more "digital" a business can be, the more one can take advantage of the tremendous efficiencies from 20 years ago that can greatly outweigh inflation concerns. However, this is not universally true. The guy you pay to pump your septic tank has enjoyed much lower digital efficiency improvements. And his cost to pay for food, housing, energy, etc. is the same regardless of how much "digital deflation" someone else is benefiting from. Though he can definitely raise his prices more than many Internet businesses. If the choice is stop sewage from backing up out of your toilet or cancel some online subscription, it's a pretty easy choice.
It also brings up the larger question of labor allocation as a society and likely plays a role in difficulties with companies finding workers. The ease of starting a Internet/digital business is quite low and has many benefits. Why go pump septic tanks, or drive trucks, or stock shelves? But as we've seen, these things are still very important to our society.
>
Here is a 7 year chart of ARKK vs the S&P
Facts, math, charts are hard to dispute, that's why I love um ....
Although I feel bullion to be the better bet, most of my eggs are in the numismatic basket.
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How does inflation account for this? Oh that's right it does not.
By definition, Gold and Silver are as close to money as you can get, and as such are the most positively highly correlated of the choices.
Seems to me one of the biggest inflation factors is going to be the higher wages companies are going to have to pay to get the (whatever misnomer you wish to use) off the government entitlement programs.
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And that is a great thing for society.
Inflation will stay in check and actually be deflationary because of digital productivity, robotics, automation, AI, etc.
wrong, seven year chart, I put in a decade, but ARKK is only seven years old. I edit my post to say 7 years.
Blows away the S&P
Should be compared to Nasdaq if it is a tech fund.
Holdthemyo mentioned the S&P and I responded to him
Here is the full charts ...
Ask and you shall receive. ARKK vs the NASDAQ on a 7 year chart ...
@erroroncoins lol ARKK/Cathie Wood is -3% Year to Date. You also literally could have only bought Microsoft or Apple in 2015 and you would have beat her fund performance. She's not the rockstar you think she is. She's a one hit wonder who got lucky only Tesla. Fund managers get judged EVERY year on if they beat the S&P. If the S&P is making 15% yield/year why is she down 3% this year?? One of my nephews could have picked 3 random stocks and made more money than her this year.
Mayo ... see the trend in the long term 7 year chart.
Go with the trend.
Anyone who tells you what the market will do short term in the next week, month or year knows not what he is talking about.
@ErrorOnCoins Idk how you call that a trend when her fund was underwater until the middle of 2017 and she only made all her funds gains in the last year. If I cut your chart off after COVID is her fund performance really that great? That's a one off event Sir. She got lucky. You don't become great buy hitting one home run, you become great by making constant hits. This is also the same woman that bought 800k shares of Robinhood before their earnings. Robinhood is down 10% after she bought those shares. https://www.bloomberg.com/news/articles/2021-10-27/cathie-wood-s-ark-bought-more-robinhood-ahead-of-earnings-flop
We will just have to agree to disagree
We can circle back in 2 years to see how she has done
I don't think it matters whether she's a rockstar or not. Her point - over the long haul - is valid. My only complaint with @ErrorsOnCoins is that he is conflating time frames. Deflationary pressures from tech have existed over 20 years. That has NOTHING to do with the current commodity inflation. Whether those pressures help temper inflation over the next 15 years per Cathy Wood's 2035 remains to be seen and could happen. But that's a different argument.
I would also point out that there's a level of privilege in the argument from EOC. Those same deflationary affects that we're lauding are probably the single greatest reason for the growing wealth gap. They don't benefit the lower wage workers at all. In fact, they tend to be an existential threat to their jobs and well being.
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Have you seen all them container ships sitting out in the Pacific?
What happens when all the crap comes in too late for Christmas? Massive blowout sales (deflation) is what I predict.
I have never had much faith in plain old silver and gold bars. I prefer the bullion to be in coin form like gold and silver eagles.
I have little faith in "investing" in collector coins at all. I bought a lot of "blue chips" 8 to 10 years ago, and they have been bad "investments." I love to enjoy them, the value has gone down the tubes. Who would have thought that collector grade Early U.S. gold coins (1795 to 1832) in AU-50 and better would all be losers?