[Bewildebeest]

TIPS are often recommended as a hedge against inflation, and for diversification with other inflation-hedges such as precious metals. Even though the government routinely underreports inflation, and therefore TIPS likely will not keep up with inflation entirely, they should at least offset inflation better than many other investments.

I'm unclear, however, about how TIPS should perform with a falling dollar. If inflation and a falling dollar are two sides of the same coin, should TIPS give some protection against a falling dollar as well (even though denominated in dollars)?

[chris-h]

why not invest in gold ?
It totaly protect you from inflation and it is highly mobile.

[Pfish]

One of the great things about the internet is you can get differing opinions on many subjects. Here is a link on why you should think twice before considering buying gold by Gary North

http://www.lewrockwell.com/north/north497.html

[Falconoffury]

PFish, that was a good article, but oil depletion pretty much guarantees gold's rise. Price inflation, as the article mentions, will continue as less energy is available in the global economy.

Also, don't forget that peak oil has an effect on precious metal mining. If oil price goes up, then the cost of mining operations goes up, and we can expect a reduction in the amount of gold mined per year.

Gold will go up eventually, right along with hydrocarbon energy and industrial metals.

[Doly]

$this->bbcode_second_pass_quote('Falconoffury', 'P')rice inflation, as the article mentions, will continue as less energy is available in the global economy.

[Falconoffury]

I think that if we were to experience really serious deflation, things would turn more into a barter system, due to lack of cash for day to day purchases. At which time, precious metals would still hold a lot of value.

Having precious metals that you can keep in a safe place is also a hedge against financial collapse, and crazy bank policies that often pop up during a depression. Just look at the banks in Argentina in 2002. If you had an account with dollars, they went right ahead and exchanged it all for devalued pesos. You were not given an option. Precious metals are a good way to exit the banking system. Doomer currency if you will.

[MrBill]

$this->bbcode_second_pass_quote('Pfish', 'O')ne of the great things about the internet is you can get differing opinions on many subjects. Here is a link on why you should think twice before considering buying gold by Gary North

http://www.lewrockwell.com/north/north497.html