Friday, May 7, 2010

Investing in Commodities to Offset Inflation

Investing in oil, gas, mining shares, gold, silver and other precious metals, to overcome inflation is not as simple as it sounds.

Many commodities can only be held in the form of futures contracts of less of a year. They are speculative and have to be continually renewed over the long term. It takes trading experience to handle them, with no assurances of lasting success.

Mining corporation investments involve all the detailed complications of securities investing that cloud that conventional strategy. The ability to master discipline is mandatory. Few investors, professionals as well as amateur, are adept at this crucial aspect of successful investing.

Buying gold or silver coins or bullion presents other problems including the need for adequate storage and possibly insurance.

My comments on other investments to offset inflation appear here from time to time. (See the Earl J Weinreb NewsHole® comments.)

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