/biz/ - Business & Finance

[Anonymous No.15013879]

Is gold the best guard against inflation?

[Anonymous No.15013901]

>2050
>asteroid mining starts
>value of gold plummets

[Anonymous No.15013908]

>>15013879
No the stock market is

[Anonymous No.15013912]

No bitcoin is, see Venezuela

[Anonymous No.15014198]

>>15013879
It's okay but not really. Main advantage of gold is in coin form for survivalists. If you just want to hedge a portfolio against inflation you're better off putting ~15% of it in a diversified range of collaterized futures.

Keep in mind that by doing that you are literally doing a pure bet on inflation instead of on gold price action. Meaning that your commodity futures will perform poorly when inflation and interest rates are both low, but it'll perform ridiculously well when they are high since you get both the higher interest on the T-bond collateral plus the price appreciation of commodities due to inflation.

[Anonymous No.15014401]

gold to hold
silver to circulate

[Anonymous No.15014403]

no dumbass. treasury inflation protected securities are. its literally 100% insured fixed income based on inflation rate

>inb4 bb-but what if da guberment collapses!

[Anonymous No.15014411]

>>15013901
this won't happen

[Anonymous No.15014423]

>>15013879
No, buy my shitcoin bags instead pls.

[Anonymous No.15014456]

>>15014198
Also, on average they are more volatile than stocks in most base currencies while having returns only slightly higher than bonds. But their volatility is uncorrelated with anything else so a composite stocks + futures + bonds portfolio will have a lower voatility & sharpe ratio than a stocks & bonds portfolio.

Also, things like mines & other commodity-based equities tend to have terrible long-term returns while still being correlated with equity markets, so you are generally better off getting a mix of index funds & futures in a commodity than buying a stock that tracks that commodity.

[Anonymous No.15014480]

>>15014456
*higher sharpe ratio

[Anonymous No.15014894]

>>15013901
Do you realize what the price of gold would have to go up to to make asteroid mining worth the cost? Maybe about $50,000 per gram, probably a lot more.

[Anonymous No.15015931]

>>15013879
>1990 was 30 years ago

[Anonymous No.15016056]

>>15013879
Permaculture is. When SHTF (and it very may well happen soon) only vegetables and sustenance is the way.

[Anonymous No.15016523]

>>15014411
yea it will in 300 years