Hedging against high inflation... What kinds of commodities should I buy, and from where?

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Gecko's picture
Gecko
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Joined: Jun 2 2011
Posts: 4
Hedging against high inflation... What kinds of commodities should I buy, and from where?

I'm about to buy commodities to hedge against inflation.  Ideally, I would have done this earlier if I had the money before now.

I plan to have several transactions between $1,000 (to avoid sales tax) and $10,000 (to avoid alerting the Fed).

I want part of this to be in bullion for more long term, and I want some smaller amounts for bartering in the short term, possibly for up to a year to live on.

I'm trying to educate myself on this, so I don't pay too much money or otherwise make unwise decisions.

Here are my questions ...

  1. Where should I buy from to ensure I'm not paying too much over spot (e.g. www.tuving.com, www.apmex.com, www.argor.com, etc.)?
  2. How should I divide the commodities between gold, silver, platinum, paladium, real estate, etc.?
  3. Am I correct that physical commodities are better than commodity securities?
  4. Is it worth it to buy anything over $10,000 to save on cost vs. alerting the Fed (i.e. buying a kilo)?
  5. What is the best way to store and protect it (e.g. at a bank or in my safe)?

Advice I've seen so far includes:

Also, what do you think of other ways to hedge against inflation?:

Thanks in advance!

 

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1329
Stuff you need - a great inflation hedge
Gecko wrote:

Also, what do you think of other ways to hedge against inflation?:

Buy things you need or will use over the next several years.  Here are some nice examples:

Toilet paper - buying TP you will use this year, last year would have made you 7%.

Tooth paste & Soap - would have made you 2%.

Clothing - Socks, Jeans, Underwear (unless you go commando) - would get you 10%

Of course energy is likely to rise considerably, so you can take advantage of many incentives that pay quite well and are likely to pay well in future such as solar, efficiency improvments, or just needed repairs that you can do now and could cost a lot more in the future (roof, carpet, etc).

 

 

 

Dagny's picture
Dagny
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Joined: Nov 17 2008
Posts: 11
Real Stuff
rhare wrote:
Gecko wrote:

Also, what do you think of other ways to hedge against inflation?:

Buy things you need or will use over the next several years.  Here are some nice examples:

Toilet paper - buying TP you will use this year, last year would have made you 7%.

Tooth paste & Soap - would have made you 2%.

Clothing - Socks, Jeans, Underwear (unless you go commando) - would get you 10%

Of course energy is likely to rise considerably, so you can take advantage of many incentives that pay quite well and are likely to pay well in future such as solar, efficiency improvments, or just needed repairs that you can do now and could cost a lot more in the future (roof, carpet, etc).

 

 

 

What Rhare said, and I'd add, as a general rule, buy real stuff that people use.  Even if you don't smoke or drink, cigarettes and whiskey are good for trading.  Aspirin,Tylenol, anitseptics, spices, coffee and tea.  Think about things you buy on a regular basis and which ones will be hard to get in a future with limited or no transportation as we know it.

Gecko's picture
Gecko
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Joined: Jun 2 2011
Posts: 4
These are great ideas that I

These are great ideas that I will strongly consider.

I was already planning to stockpile non-perishable food, water, toiletries, clothing, ammo, etc.

I was also looking into a solar powered generator (http://mysolarbackup.com/) and possibly an electric or hybrid vehicle.

However, I will have additional money left over after this, and would like to protect my financial portfolio as much as possible.

How can I do this based on my other questions above?

Thanks!

Gecko's picture
Gecko
Status: Member (Offline)
Joined: Jun 2 2011
Posts: 4
What kinds of commodities should I buy, and from where?

Can anyone else advise me on how to protect my financial portfolio based on my questions above?

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
It is a puzzle

Gecko

You've asked the question we all want to know.  I'm still struggling with that myself.  Start with the "Take Action" tab at the top of this page.  Then use the search function.  There is a lot of advice here already if you look.

Travlin 

docmims's picture
docmims
Status: Platinum Member (Offline)
Joined: Jun 17 2009
Posts: 644
I dunno inflation is so

I dunno inflation is so mainstream now, I'm thinking serious deflation because Japanese economic collapse would take out the US economy with 3 or 4 percent drop in US GDP.  Be in cash with some Precious metal insurance.  Of course we could have food inflation with serious drops in real estate  and large asset/stock deflation (BiFlation), so stocking up on food and necessities will be a good investment.

Gecko's picture
Gecko
Status: Member (Offline)
Joined: Jun 2 2011
Posts: 4
Travlin, Thanks.  I will

Travlin,

Thanks.  I will review the material.

Gecko

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