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tunylune
New Member
USA
20 Posts |
 Posted - 04/05/2010 : 01:40:12
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| I would not buy Chinese stocks because they are high and in a bubble. I would buy Chinese Yuan currency because it is presently being held at artificially low values and pegged to the U.S. Dollar at six of theirs to one of ours. The reason the Chinese govt. does this is to enhance their export business. It also kills our export business. When their inflation gets too high "and it will" they will have to strengthen the Yaun and you will not only profit by this but by buying the Yaun causes pressure on it to strengthen and this in turn will help U.S. exports. Since they are buying us up why not buy them up in defense. Just a rogue thought. Mark |
When the People fear the Government there is tyranny. When the Government fears the People there is Freedom. Thomas Jefferson |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 04/05/2010 : 02:20:23
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| I'd invest in Canada. We are pulling out of the recession. The Lonnie is strong. The Government very reluctantly did stimulus spending and is now going back to pounding down debt. Politically stable, close enough to run too, similar culture to the US, low risk, lots of resources. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 04/05/2010 : 09:23:04
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| International tobacco, beer, and soft drink companies - even if the US uses less in the near future, emerging economies are using more as they get more money and become more "western". |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
Edited by - AGgressive Metal on 04/07/2010 12:34:16 |
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ryan45845
New Member
1 Posts |
Posted - 04/07/2010 : 02:14:41
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| I am sad to say it but, short of water and food I dont think there is another good hedge. I think we are rapidly approaching a time where lead is going to be the smartest metal to own. |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 04/07/2010 : 11:42:55
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I think anything hard asset will be the best thing to invest in when major inflation hits. I know most people are avoiding real estate. However, the U.S. population continues to grow and people always need a place to live. If you have the money and can pay cash, people are getting killer deals on real estate right now. Also, all the tax write offs that come with owning rental property can provide a big tax break. Of course, there are many headaches that come with being a landlord.
It seems very wealthy people don't follow the herd mentality. They go against what the crowd is currently doing. |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 04/07/2010 : 12:37:02
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| Rents are one of the slowest things to increase during inflation, historically. Because rents are tied to what people can pay with their wages, which typically lag, and because rents are set annually, not monthly or weekly (usually). |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 04/07/2010 : 13:22:59
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quote:
Originally posted by searching4silver
I honestly don't worry too much about the end of society type scenarios. I have guns, food, and water. I was a boy scout and a Peace Corps volunteer so I have lived without electric, running water, and most municiple services for about 4 years of my life total.
What I am trying to push this thread back towards is its original intent was looking for monitary hedges against inflation. Monitary investments. Types of stocks? I have thought about opening up bank accoutns in other countries in order to benifit from the declining dollar? I have also thought about bonds from countries with less debt to GDP ratio than the US. I am basicly looking for bets against the US. I honestly don't see anything changing with regard to government spending in the short term (Moody's threatened to lower our AAA bond rating recently) Thus, I am basicly betting against the US that we will mess up our own bonds and economy before we wake up and become more fiscally responsible. (think the current situation in Greece)
investments in other currencies are ok to hedge against a falling dollar but what is going on now is the failure of all currencies. none of they are backed by anything, and all governments have too much debt. tyring to pick one is like picking a poison. pm's are much better, followed by energy and farmland. farmland is both an economic and madmax type hedge. barton biggs wrote a book on how the markets performed during wars. he noted that people with farms did really well.
there is an online bank called everbank if you want CD's denominated in FX. they are ok, but they charge you three quarters of a percent to get into an FX and the same to get back to dollars. that sort of fee is obscene. its 150 basis points. you can convert yourself with a good online broker, like interactivebrokers. alternatively, you can buy bond etfs for a particuar country, like brazillian bonds or something like that. economically, i think you are better in pm's and energy. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 04/07/2010 : 13:37:08
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Personally, I just would want a hard asset (ie real estate, silver, gold, essentials) during a time of economic uncertainty and during inflation.
Paper whether it be stocks or bonds or paper money scares me personally. Look how many people lost almost everything during the recent stock market crash we had. I know property values have fallen significantly but at least at the end of the day you have something you can touch and use.
And I agree rents don't go up during economic downturns. However, you have several things going with real estate. Tax breaks, appreciation (which will happen again in the future), and rental income.
And no I am not a real estate agent haha :-) |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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Zyll
Penny Pincher Member
USA
214 Posts |
Posted - 04/07/2010 : 13:56:54
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As the Canadian dollar hits parity vs. U.S. dollar, JSMineset’s consistent view of best currencies, in order of quality, are:
1. Gold.
2. Cando.
3. Swissy. |
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Roberto
New Member
USA
9 Posts |
Posted - 04/10/2010 : 16:27:47
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Hello:
If you are looking to hedge yourself against inflation, take out a lot of debt. Use that debt to buy productive assets OR PM's. Specifically, try to get debt that is long in duration and has a fixed interest rate. You will then pay off the loans in debased dollars. Of course, this is easier said than done.
There are a lot of things to hedge against (other than inflation).
Having 6 or 12 months of food on hand is a good hedge against social upheaval, inflation, job loss, famine & other things.
Having hard physical assets is somewhat of a hedge against inflation.
I think the first metal you need to invest in is lead.
You can't have gold & silver if you don't have lead.
Roberto |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 04/11/2010 : 18:43:41
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| Ammo is actually a great investment if you look at prices over the last 10 years. More people than ever own guns in the US and the raw materials used in cartridges are inflation sensitive. Its highly divisible and fairly liquid, especially if you live in a "red state" haha. |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 04/11/2010 : 20:59:29
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quote:
Originally posted by ryan45845
I am sad to say it but, short of water and food I dont think there is another good hedge. I think we are rapidly approaching a time where lead is going to be the smartest metal to own.
The guy who wrote this article titled "The Art of Not Getting Shot" says that stocking up on your own food and other necessities will keep you from getting ventilated by lead. I'm probably going to post a blog entry about it tonight myself:
You must be logged in to see this link.
quote:
Originally posted by AGgressive Metal
Ammo is actually a great investment if you look at prices over the last 10 years. More people than ever own guns in the US and the raw materials used in cartridges are inflation sensitive. Its highly divisible and fairly liquid, especially if you live in a "red state" haha.
Is it wise to deplete your own ammo supply even if you're "trading up" for something else you don't have? |
Visit my new preparedness site: Preparedness.cc/SurvivalPrep.net
--Latest article: Stocking up on spices to keep food preps lively
---------------
Be prepared...and prepared to help: http://www.survivalblog.com/charity.html
Are you ready spiritually for hard times? http://www.jesusfreak.com/rapture.asp |
Edited by - Nickelless on 04/11/2010 21:01:08 |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 04/11/2010 : 23:38:44
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quote:
Is it wise to deplete your own ammo supply even if you're "trading up" for something else you don't have?
I think you could say the same thing about trading gold and silver for something you need. Its all about maintaining your "core" position and knowing what you can afford to trade and what you can't. Gold doesn't help you if you don't have guns to defend it and guns don't help you if you don't have clean water to drink and so on. |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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Be Nice to BankTellers
Penny Sorter Member
USA
77 Posts |
Posted - 04/12/2010 : 00:15:57
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Back to your original question. Equities and bonds do very poorly in an inflationary environment, due to the erosion of the value of future cash flows. If you think it is a global problem, then there are no good equity investments. If you beleive the issue is unique to the US and Europe, then buy a company operating in a future leading nation. Many people say China, but I like Brazil because they have plenty of water (at least for now) and other raw materials, the demographics favor LT growth, and smokin' hot ladies!
Companhia Vale do Rio Doce (VALE) and Petrobras (PBR) are my two favorites, there are plenty of others. |
Grandpa always told me, "Back in 1964..." I listened.
Selling copper cents @ $2.50/lb. + shipping. |
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silvercreek
New Member
2 Posts |
Posted - 04/16/2010 : 20:21:49
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all seriousness......fidelity Canada fund awesome
and
You must be logged in to see this link.
check out....PRPFX
it holds 20% real physical Gold
5% real Silver coins
10% Swiss francs
and more |
Edited by - silvercreek on 04/16/2010 20:25:13 |
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How can we hedge ourselves in addition to PM's?
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