Monday, July 18, 2011

Commodities to Offset Inflation?

Is investing in oil, gas, mining shares, gold, silver and other precious metals, the means to overcome inflation?

It is not simple as often presented by the media.

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

Mining corporation investments have all the complications of securities investing that involve conventional strategy. The ability to master discipline is essential. Few investors, professionals or amateur, are adept at this aspect of successful investing.

Buying gold or silver coins or bullion presents other problems including that of storage and 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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