Inflation hedges

[BGDave]

In a recent sale ad I posted a reference to the effect of inflation on savings accounts. To wit; with 7 or 8% inflation rates (depending on which gas station you use) a savings account soon becomes a loss account. Having lived through the late 70s and early 80s it made sense to spend that cash fairly quickly to avoid lost buying power. My advice today would be buy the best condition firearms you can afford. I distinctly remember class 3 firearms doubling in value every 5 years or so.
Any other ideas to lessen the misery?

 

[jsharmon7]

Silver/gold aren’t a bad hedge against inflation. I like booze, but don’t see much resale in it. Firearms are always going to retain value, so that’s my pick. For your poll, I’m going .22!

 

[BehindBlueI's]

I-bonds are paying 7.12%, but you can only buy $10k a year I think.

 

[rhamersley]

I found an app called Blockfi. It’s a crypto site, but they have fairly good interest rates on stablecoins. I have some money stashed in Geminidollar, backed by real fiat money, and it’s earning 9% interest right now. Not making a ton, but it’s better than .5% in a “high-yield” savings account.

https://blockfi.com/?ref=9e0cd084

Of the three things mentioned, probably the ammo.

 

[nate77]

Land, and precious metals are the classics.

 

[binkerton]

Silver and Gold

 

[rob63]

The stock market; the heart of capitalism.

 

[DoggyDaddy]

Silver and Gold

 

[pmbiker]

I thought bacon was a required poll option?

In today's volatile market.....and considering that I shoot up my ammo and drink up my booze, I'll go with used cars.

 

[Bugzilla]

If you have something to utilize the ammo, you can then obtain booze and cars and ensure you can keep them!

 

[Alpo]

The largest component of CPI is housing (and a portion of the energy component is included therein). A good investment would be to invest in the sustainability of your investment in that home. If you rent, it might be time to become a homeowner. Lumber price escalation and housing shortages will likely not abate in the near future.

Don't buy a new automobile. Service what you have. If you "must" buy, look for higher mileage vehicles that may not last more than a few years.

Food: We've cut back on luxuries and junk food.

Personally, other than food price escalation, our "inflation" effects are minimal, but we are watching food prices a lot more closely. As to Housing, it's hard to brag about the increasing value of our home and with the same breath b*tch about housing inflation.

 

[blain]

Just "off the top of my head" thinking...

A. Food, fuel (as much as you can safely store), a store of water should always be on hand.
B. Au, Ag, farmland and/or investments including these.
C. (for barter)... Coffee, liquor, 1st aid supplies.
D. Cash (dry powder), for scooping up dirt cheap bargains along the way.
Consider the inflation tax as a type of option premium to allow you to be in the right place at the right time.

 

[AtTheMurph]

Things of real value that do not have a counterparty are inflation hedges. You should not be looking to profit from inflation but to maintain the value you have during inflation.

And I would think that things that are easily transportable, smaller, would be more useful than large, heavy things. Historically gold, precious metals, art work have been the best.

If you are seeking to profit from inflation then leverage is the answer. You borrow and buy real things and repay the lender with depreciated currency.