Quote:
Originally Posted by arock10
You are better off just investing in property though as an inflation hedge, as it'll continue to generate income either way.
But then you mention deflation... which could happen... but that'd be bad for gold too.
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Property is a reasonable inflation hedge and no-one would suggest you not to own it but its not a substitute for currency. Gold is and has always been the only decent substitute which is why 10% of liquid cash (not total assets) held in the form of precious metals is a smart move.
If you have deflation your cash buys you more and if you have inflation, the gold rises to hedge against the loss of purchasing power of your cash and does a great job of compensating you.