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Could that make such inflation hedges a good pre-inflation hedge? For example buying gold with the expectation that people will soon want more hedging than they
by kipchak 6y ago
Could that make such inflation hedges a good pre-inflation hedge? For example buying gold with the expectation that people will soon want more hedging than they do now, though this relies on getting in earlier than others.
- pas 6y agoThis is how derivatives trading (and speculation, and investing itself ultimately) works. It's all about mentalizing how others will trade. The big question is to pick the optimal asset for hedging.
- dkersten 6y agoSo, just price speculation then?
- vkou 6y agoYes, but at that point, you should just borrow money, and do something useful with it, because being in debt is a simple, straightforward inflation hedge.