Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More
Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More