What would be the best hedge against inflation

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Re: What would be the best hedge against inflation

Postby dannan14 » Sun Mar 03, 2013 5:57 am

beauanderos wrote:...consider what would happen if peak oil was real... cheap items made of plastic such as disposable razors, lighters, eyeglasses can be picked up very inexpensively now and could be used for barter if ever TSTF or there was a lengthy supply disruption.


Of all the items i've considered gathering in bulk i've never thought of cheap plastic items. /facepalm It makes a lot of sense. Lighters i'm not so sure about though. They surely will be very valuable...but how long does a Bic keep it's fluid in storage? One year? Maybe two? i've bought lighters in shrink wrapped packs before and some of them did not last long at all.

Regarding peak oil, i think it's pretty certain we've passed it...or at least peak cheap oil which really is the issue anyway. The Canadian Tar Sands seem to be a pretty strong argument for this. That oil is expensive to get out of the ground and expensive to refine. They wouldn't consider it at a long term price of $40-50/bbl let alone the prices of "free oil" in the 90s. The late 90s sure were great for travelling. i once drove from Indiana to the Gorge Amphitheater in the middle of Washington and back for $70-75. /tangent off Natural Gas could be in the same position too. i don't know the particulars of fracking, but i'm sure it's pretty expensive even before dealing with all the lawsuits it will cause.

Anyway, thanks for the new ideas.
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Re: What would be the best hedge against inflation

Postby Engineer » Sun Mar 03, 2013 6:24 am

dannan14 wrote:Regarding peak oil, i think it's pretty certain we've passed it...or at least peak cheap oil which really is the issue anyway.


When you price oil in 90% silver, it comes out to roughly $0.15/gallon of gas. That's pretty cheap in my book.
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Re: What would be the best hedge against inflation

Postby Frank t » Mon Mar 04, 2013 5:31 pm

trees sound awesome but i lack space, small plastic items may take too long to flip or to appreciate. ammo of common caliber i am going to save. keep em coming i have the rest of my life.
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Re: What would be the best hedge against inflation

Postby Engineer » Mon Mar 04, 2013 8:23 pm

Frank t wrote:trees sound awesome but i lack space, small plastic items may take too long to flip or to appreciate. ammo of common caliber i am going to save. keep em coming i have the rest of my life.


What do you know you'll need to spend money on over time?

It never hurts to have a 5 year supply of underwear and socks. If there's a type of shoe you like, why not buy more than one pair? How many pairs of jeans do you go through in a year? Paper towels, TP, sheets, and other non-perishables are good too.

At least a 3 month supply of food has saved my hide on a number of occasions. Rather than having the food portion of your emergency fund money sitting in the bank earning nearly nothing, you can have it sitting in your pantry keeping up with inflation.

If you have a mortgage, you can prepay 6 months of interest and principal which isn't quite as good as paying it all to principal, but it will stay on the books as payments you don't need to make if you're between jobs, and the return will be equal to your mortgage interest.
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