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The Upside of Inflation

From Esquire Online.

"Some are obvious — the guy with a bunch of gold bars is already cashing in via those "send us your gold in an envelope" commercials that should be interpreted as a precursor to the apocalypse. But other winners include those who have anything to sell that can be priced in U.S. dollars. Grocery stores, for example, will have pricing power they haven't experienced in years. And our $15-an-hour worker will likely command meaningful wage increases for the first time since the early '80s (shame that his groceries will cost more, but still...), and commodities from land to sugar to copper will command higher prices. Producers of American goods and the American hospitality industry should see demand grow."

As for holding items that appreciate in value, might I recommend artwork, antiques, stamps, wine, or just about anything else besides gold? The time to buy gold was back in 2001, and the only hedge against inflation it provides is to your PORTFOLIO.

Posted by Cute at 9:35 PM

Labels: economy, financial (non-tax), food purchases, taxes