What to Invest In – Surviving Inflation
Posted on October 2, 2011 by Penny Stocks Picker
This article is to provide you with some ideas on what to invest in to protect yourself in an inflationary environment? Think prices can’t go higher? You ain’t seen nothing yet. If your reading this, then I’m pretty sure you have pulled your head out of the sand and see that something is going on (that is, your hard earned and saved dollars are buying you less and less) but you just aren’t sure how to preserve your wealth and even profit in this environment. Well, I hope to give you a push in the right direction and light that fire for you to do something about it. This is just a starting point, you need to do your own homework and make your own choices. Probably a good idea to spread your investment around the following groups. So, with that lets get to the point, Invest in hard assets:
PRECIOUS METALS:
#1) Invest in Gold, Silver and Platinum:
Personally, I like US Bullion type 1 oz coins such Silver and Gold Eagles coins or Canadian Maples. You can buy these at your local coin store. A few good sources to give you an idea what to pay is at TULVING.com and COININFO.com. My personal preference is Silver over gold for many reasons (i.e., Silver has been used as money longer than gold, it has more of an industrial demand that is growing because of it’s physical properties and it is less likely to be confiscated by our government than gold is). Now is a great time to begin buying Silver and Gold with the recent pullback. Silver spot price went from about $42/oz to $30 oz. I just bought a few more rolls (20 coins per roll) of $1 Silver Eagles at $34 per coin (premium of $4 over spot), could buy cheaper at Tulving but you have to buy 500 at a time.
Another good way is to Invest in an Exchange Traded Fund (ETF): Such as SLV for silver or GLD for gold. These trade just like a stock and you can purchase them through your brokerage account. Finally, you can invest in mining stocks. Stick with the big boys that are actively mining gold, silver, and rare earth metals. Going with penny stock or exploratory phase only companies is just a gamble. Your purpose is to preserve your wealth not gamble it away.
ENERGY COMMODITIES AND STOCKS:
#2) Invest in Oil and/or the transportation of it.
Well let’s see, you aren’t going to go buy 55 gallon drums of oil or gas and store them in your garage are you? I sure hope not. The best way to invest in the commodity itself is through Exchange Traded funds such as USO or USL. You could also choose to invest in pipeline funds or transporters that are not tied to the price of the commodity. These type of funds invest in pipeline and the transportation of oil, gas and such. Do a search, you will find many.
FOOD:
#3) With rising prices, food ain’t going to get any cheaper and people still need to eat no matter what happens. There is so many choices in this sector and the commodities (sugar, grain, coffee….) Again I like ETFs for this purpose such as the agriculture food fund DBA.
SUMMARY: These are just some starting points, there are many ways to invest in these sectors. I’m not going to tell you what or how, just a few tips to get you headed in the right direction. What you choose is a personal preference. I like Silver and other commodities. I’ll buy physical positions in them, ETFs, stocks as well as take Options in them at certain points (both Put and Call) to either short them or go long when I see that volatility is about due (need rapid price change in order to profit on an option).
