what to buy if inflation returns

Hopefully, you are a lot younger than me and never had to endure the last bout of inflation. In which case nobody wins. Not the rich, not the poor. Everybody eventually takes a hit. It doesn't matter how smart you think you are, you can run but you cannot hide.

If you are a left wing radical who beleives in wealth destruction, inflation is your tool.

There is no escape, so bitch all you want about the fed, especially the dual mandate. I've been unemployed, and I've been through inflation, and they don't have any inflation benefits that finally run out.

I can deal with just about anything you can throw at me, but not inflation.
 
Quote from billyjoerob:

Like I said, the gold bugs are masters of ignoring evidence.

Here is a data point with a 300 year history. Admittedly this is the UK, but still relevant:

http://digressionality.blogspot.com/2012/08/yield-on-british-perpetual-bond-is-at.html

Basically, the consol has never been at a lower yield.
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Yeah, when central banks throw trillions at bonds, of course they go down and stay low. It's called money printing...they will keep having to print more and more money to buy these bonds that nobody wants which will cause high inflation.
 
Quote from billyjoerob:

Essentially when interest rates are low enough, the long bond and gold become equivalents.
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As Jim Grant says, the price of gold is determined by 1 / n where n = the confidence you have in people controlling the monetary system.

I don't think the price of gold peaks unless interest rates get over 5%+ and with the current people in charge, that ain't gonna happen anytime soon.

I don't see how you can equate gold with long bonds.

If I were you I'd put at least 10% of my money in gold, probably more.
 
When Bernanke inverts the treasury yield curve, then I'll think about paying the big scary bid-ask spread on some of my coins (some of the ones I didn't lose when the canoe tipped over). Don't forget what's going on in DC, which is a big driver for what's happening with gold. If you think you missed the boat because gold has gone up a lot, you're looking at the chart upside down.

SHV/GLD

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OP you're gonna be waiting a LOOONG time for cheap gold. Gold is about as likely to go back to $350 as it is about to go back to $35. It's gone for good because the world has changed in some really bad, permanent ways.
 

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