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The case for buying commodities as an inflation hedge

Posted on 18 November 2013

If you are worried about inflation, then it makes sense to look at investments that have historically performed well during periods of inflation. In a book called “Defying the Market,” authors Stephen Leeb and Donna Leeb research how well investments, including stocks, real estate and commodities, held their value during the 1970s when the CPI averaged a nominal rate of 8%.
A key factor for this increase has to do with negative real interest rates. Whenever a country has negative real rates, meaning the inflationary rate (CPI) is greater than the current interest rate, gold tends to rise in that country’s currency as investors seek a better store of value………………………………………..Full Article: Source


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