07-27-2022, 06:41 PM
(07-27-2022, 05:43 PM)dobanion Wrote: Traditional commodity based inflation hedges didn't work this time around. See gold and silver.
Now if you had bought up a bunch of oil futures, different story.
Central banks own and control a lion's share of gold and silver reserves. Making it easy for them to set prices.
Aluminum prices are also controlled on the supply chain and distribution end. Coca cola and pepsi complained about it for years.
The price of a bushel of wheat, a pound of aluminum or a gram of gold are all expected to retain value better than unbacked currencies lacking intrinsic value.
Prices for commodities should have parity with oil. Increased cost of shipping trickles down everywhere.