Hedging against inflation

[Mastermind]

Many are concerned with increasing prices of goods and services.
There is a way to completely insulate yourself from price swings.
Be it in fuel, real estate, food, electricity, etc.
The practice is called hedging.
https://www.investopedia.com/articles/optioninvestor/07/hedging-intro.asp

Lets say that a farming business buys oil and sells wheat.
Recent price swings makes them hesitant to order seeds, knowing that they could lose money if the price of oil jumps or the price of wheat tanks.
Wouldn't it be nice to have a way of guaranteeing profits before they start planting anything?
There is a way. It's called futures.
https://www.investopedia.com/terms/f/futures.asp
Simply put, futures are contracts for the exchange of goods at a certain price at a future date.
The problem for you is that futures are now only for the big players. Contracts are too big for small players to participate.
However there is a solution. It's ETFs, Exchange Traded Funds. The exchange will play as intermediary and will pool lots of ETFs into single big contracts. 100 farmers can sell their wheat ETFs and the exchange will sell a single future contract combining them all. These ETF contracts are small enough so that anyone can play.

So how does the farmer guarantee a profit? By buying (going long) oil ETFs and selling (going short) wheat ETFs.
If the price of oil jumps, the farmer will pay more at the pump. However, the price of the ETF he bought will also jump. He can sell the ETF at this higher price and get back the money he lost at the pump.
For wheat he does the inverse. He opens a short position on wheat for the amount he plans to sell. If the price of wheat decreases, he will lose when he sells it. However, the price of the short ETF will have increased in price, negating the price swing in wheat.

So what do you do?
Make a list of the things that you'll need to buy and that you'll need to sell.
Do you need fuel? Do you need to eat? Do you need to pay rent? Do you need electricity? Do you need currency? Calculate how much you'll need over the next 1 or 2 years. This length of time is on you to decide.
Then go on an exchange and buy what you need, right now. Some exchanges even offer to leverage your money for a fee. With $1k they let you buy $5k of stuff for example.
You can buy all of the above things in advance. If the price increases, you pay more for them but your ETFs also get more expensive. If the price decreases, you pay less but you also lose on the ETFs.
This way you can completely insulate yourself from future price swings.
However there are lots of things that you may need but there is no ETF for it. What to do?
You need to find things that are correlated.
Lets say you spend $1k per year on a particular medicine and it'd be catastrophic if the price jumped to $5k. You need to find the historical price of that medicine and then compare it to other financial instruments. Can you find a strong correlation? If yes, you can buy the correlated instrument and be almost certain that if the price of the medicine jumps, the instrument will also jump. For example you could look at the price of the medicine vs the stock price of the company producing it. Usually, higher price of product = higher profits = higher stock prices.
Also, multiple things could be correlated to a single item. Oil is such an example. Higher oil prices will mean higher prices for almost everything. So you may want to buy more oil than you need directly. How much is for you to calculate.

 

[darkmonkey666]

That sounds way more needlessly complicated than most investment things are and maybe like you won't even gain anything out of it just compensate for inflation if I am even reading this right. There are plenty of other things. Real Estate, Stocks, Cryptos, gold and other precious metals etc that people could gain way more out of and that are more straight forward.

 

[Jack]

Real estate is needlessly overvalued because companies like BlackRock are buying all of it up giving twice the price of what's the property is actually worth. And Stocks and all that shit will collapse during the economic crash.

The only real hedges against the Dollar are Crypto and Gold for the average person. Buying a piece of land should be outside of the major cities where you can go in an apocalyptic scenario. It's not for selling.

 

[Gearshift]

Real estate is needlessly overvalued because companies like BlackRock are buying all of it up giving twice the price of what's the property is actually worth. And Stocks and all that shit will collapse during the economic crash.

The only real hedges against the Dollar are Crypto and Gold for the average person. Buying a piece of land should be outside of the major cities where you can go in an apocalyptic scenario. It's not for selling.

Very well said especially more so with material being inflated in value causing houses and housing repairs to skyrocket. For example where I live for the past month they've been fixing two houses behind us. One house they moved out of and was either bought out or the owner wanted to re-rent it or sell it and the other the person died about a year or so ago and the house has just been there a quiet derelict.

Funny enough both houses are similar 1950s-esque houses both are godawful houses with that cheapy, crappy flat roof black cover roof and the roof edges which has the trim is that old crappy material that when it wears down it flakes and breaks apart like nothing. Both houses should have been torn down a long time ago and recreated with modern material or better construction.

Funny enough the house that is done reconstructing and is being looked at by various people. I saw the guy who owns it as he appears with these people to show them either for rent or purchase. Hilarious he wants 569,000 dollars for the house.

The house back in the early 2000s was like 110,000 dollars. Funny enough without inflation or supra-value(like Stormblood said 90-95% devalue or as I said 20-30 times overinflated; Stormblood's 90-95 is a bigger punch than dropping inflation 20ish-30ish due in part to money; I guess Stormblood wants to slough off ALL the shit smeared on money in reality he is going full revolutionary in wanting to know the ACTUAL value of every home and item in a nation), the house is probably not even worth 20-30K the backyard is atrocious it's a small 20ft-7ft area. It's backyard is less than 7% of the total property size. The house was a multi-rental unit I believe and the guy sent people to turn it into just a large house.

How the fuck does that house cost over half- a million dollars. Even if he rents it, he'll probably turn it into a 2,500-3,000 dollar a month property.

Seems like inflation not just being a hidden tax on wealth but is the slave making society with the unknown slavemasters.

I recall a member stating if houses could be more regulated we can free up billions for the housing market that could be used to improve people's houses I guess it's some sort of subsidies or something.

Anyways if the house behind me is considered a cheap ass piece of shit place a polished turd much like the other house and that house is worth over 569,000 dollars than I assume the other house which they finished construction is somewhere in that ballpark either that is disgusting they certainly aren't worth that much money it's retarded.

 

[Stormblood]

Real estate is needlessly overvalued because companies like BlackRock are buying all of it up giving twice the price of what's the property is actually worth. And Stocks and all that shit will collapse during the economic crash.

The only real hedges against the Dollar are Crypto and Gold for the average person. Buying a piece of land should be outside of the major cities where you can go in an apocalyptic scenario. It's not for selling.

Twice? More like a 100 times actually lol

 

[Mastermind]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

 

[Lunar Dance 666]

Real estate is needlessly overvalued because companies like BlackRock are buying all of it up giving twice the price of what's the property is actually worth. And Stocks and all that shit will collapse during the economic crash.

The only real hedges against the Dollar are Crypto and Gold for the average person. Buying a piece of land should be outside of the major cities where you can go in an apocalyptic scenario. It's not for selling.

Twice? More like a 100 times actually lol

To have a roof over your head is even in the constitution yet somehow a house must cost 6 trillion or so (overexaggerated but you get my point). what the heck.

Newly build house here. Unfurnished, no batroom,flooring, no nothing. 200 m2. 800-900.000 ...

 

[Henu the Great]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

 

[Stormblood]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

Because you are ignorant and don't know how to make money off downtrends. I needed to be blunt this time.

 

[Soaring Eagle 666]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

Haha, very funny. It makes a good point. The correct statement is that Bitcoin has no intrinsic value, but it is worth what people are willing to pay for it. In contrast gold has intrinsic value as a useful material, which makes it slightly better in the event of a total economic crash, but the fact remains, you can't eat either one.

The main problem with cryptocurrencies is that they depend on the Internet to work.

 

[Jack]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

Because you are ignorant and don't know how to make money off downtrends. I needed to be blunt this time.

You can make the most profits when you buy during the downtrends or what is known as "Buying the Dip". People think that this is first time for the Crypto market but this has happened before as well.

When the coins that I mentioned explode we should post receipts with percentages to illustrate this.

 

[NinRick]

" post_id=332082 time=1646718730 user_id=346]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

Haha, very funny. It makes a good point. The correct statement is that Bitcoin has no intrinsic value, but it is worth what people are willing to pay for it. In contrast gold has intrinsic value as a useful material, which makes it slightly better in the event of a total economic crash, but the fact remains, you can't eat either one.

The main problem with cryptocurrencies is that they depend on the Internet to work.

Yes this is very true, thanks for speaking this out loud.

Also if the jews openly wanted, they could just destroy the btc basically, as they run the Governments, and Media.

Ban Crypto here, talk Crypto bad there, and poof.

I also have a bit of btc, but only to increase the chances that I can deal better with an emergency situation. I won’t sell them.

 

[Mastermind]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

Because you are ignorant and don't know how to make money off downtrends. I needed to be blunt this time.

If someone followed my advice, they'd be able to unload some profits off of oil and buy crypto for cheap.
Meanwhile mr. blunt's advice never made money for anyone.

 

[Stormblood]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

Because you are ignorant and don't know how to make money off downtrends. I needed to be blunt this time.

You can make the most profits when you buy during the downtrends or what is known as "Buying the Dip". People think that this is first time for the Crypto market but this has happened before as well.

When the coins that I mentioned explode we should post receipts with percentages to illustrate this.

You can profit also with trading. Trading is different from investing. You earn based on how many pips (or pipettes in some cases) the price changes since you "entered" the market. You can also set values to exit automatically, not to mention values to enter automatically. The difference is that profits and losses there can be much higher, and your positions are automatically closed if your account balance won't be able to sustain the loss.

:arrow: :arrow: :arrow: :arrow:

" post_id=332082 time=1646718730 user_id=346]
Haha, very funny. It makes a good point. The correct statement is that Bitcoin has no intrinsic value, but it is worth what people are willing to pay for it. In contrast gold has intrinsic value as a useful material, which makes it slightly better in the event of a total economic crash, but the fact remains, you can't eat either one.

The main problem with cryptocurrencies is that they depend on the Internet to work.

What is gold useful for, exactly, other than making jewellery, which nobody needs in a survival scenario? In that case, I think copper and silver would be more useful, as they have some practical applications that I am aware of. Iron and steel even better. I am not aware of any practical applications for gold.

 

[Fuchs]

Because you are ignorant and don't know how to make money off downtrends. I needed to be blunt this time.

You can make the most profits when you buy during the downtrends or what is known as "Buying the Dip". People think that this is first time for the Crypto market but this has happened before as well.

When the coins that I mentioned explode we should post receipts with percentages to illustrate this.

You can profit also with trading. Trading is different from investing. You earn based on how many pips (or pipettes in some cases) the price changes since you "entered" the market. You can also set values to exit automatically, not to mention values to enter automatically. The difference is that profits and losses there can be much higher, and your positions are automatically closed if your account balance won't be able to sustain the loss.

:arrow: :arrow: :arrow: :arrow:

" post_id=332082 time=1646718730 user_id=346]
Haha, very funny. It makes a good point. The correct statement is that Bitcoin has no intrinsic value, but it is worth what people are willing to pay for it. In contrast gold has intrinsic value as a useful material, which makes it slightly better in the event of a total economic crash, but the fact remains, you can't eat either one.

The main problem with cryptocurrencies is that they depend on the Internet to work.

What is gold useful for, exactly, other than making jewellery, which nobody needs in a survival scenario? In that case, I think copper and silver would be more useful, as they have some practical applications that I am aware of. Iron and steel even better. I am not aware of any practical applications for gold.

"What parts of a computer have gold in them?
It is a known fact that many computers and electronic devices contain some amount of precious metals, like gold. Located on the printed circuit boards, processors, and other components, some electronics can have relatively high levels of the stuff.

With regards to gold alone, the main PC parts containing gold include, but are not limited to:

Motherboards and printed circuit boards - The motherboard in particular is often the best potential source of gold in computers. The edges of most components on the board will have gold contacts and connectors where the wires slide in. You will often find thin layers of gold on the motherboard's surface.

Central Processing Units (CPUs) - These are the large square microchip-looking things you'll find on motherboards. They tend to have hundreds of gold-plated pins around their edge and undersurface. If you have a large cache of them, it could be worth a pretty penny.

Random Access Memory Chips (RAM) - A part of the circuit board, these little gold mines are installed to increase the operational memory of your computer. They often contain a small but a significant amount of gold-plated pins, and a thin layer of gold on their surfaces.

Internal modems, PCI boards, ethernet ports, GPU, and other peripherals like drives - Most computers contain at least one or more of these extra boards. They also often contain large relatively amounts of gold. Like other components, you'll find the gold on connection pins and surface layers."

https://interestingengineering.com/how-much-gold-is-in-your-computer-and-how-efficient-it-is-to-reclaim-it

 

[Mastermind]

I hope you guys listened to my advice and bought stuff that you'll need.
Wheat up : https://finance.yahoo.com/quote/WEAT
Corn up : https://finance.yahoo.com/quote/CORN
Oil up : https://finance.yahoo.com/quote/CL=F?p=CL=F

Meanwhile, shitcoins, stocks, precious metals and real estate... all down or stagnant.

I've been in this game far longer than you have. Arrogance has bitten you in the ass.

Because you are ignorant and don't know how to make money off downtrends. I needed to be blunt this time.

I'm not saying that you are a jealous troll p.o.s., but some would say that based on your post. I needed to be blunt as well.

 

[Soaring Eagle 666]

" post_id=332082 time=1646718730 user_id=346]
Haha, very funny. It makes a good point. The correct statement is that Bitcoin has no intrinsic value, but it is worth what people are willing to pay for it. In contrast gold has intrinsic value as a useful material, which makes it slightly better in the event of a total economic crash, but the fact remains, you can't eat either one.

The main problem with cryptocurrencies is that they depend on the Internet to work.

What is gold useful for, exactly, other than making jewellery, which nobody needs in a survival scenario? In that case, I think copper and silver would be more useful, as they have some practical applications that I am aware of. Iron and steel even better. I am not aware of any practical applications for gold.

The computer you wrote that post on depends on gold's amazing chemical properties. Almost all computer chips use gold bonding wires to connect the silicon die to the external contacts. It's also used for gold-plating contacts to keep them from tarnishing. Gold is used all over the place in electronics because it has extremely high conductivity, does not corrode, and can be stretched microscopically thin. Electronics is the largest industrial use of gold. Every smartphone has about $2 of gold in it. Multiply that by the 1 billion smartphones sold every year, and there's $2 billion of gold going into phones every year. If you include all electronic products, then the number is closer to $20 billion of gold every year (300 tons).

In a survival scenario, yes, gold is of little value. As I said, you can't eat it for food. But the world depends on computers, and computers depend on gold.

 

[Ol argedco luciftias]

Land, vehicles, guns, tools, food. Things that are always needed in every situation, and do not degrade over time if you take care of them. Most guns keep their value very well regardless of inflation, and land gets even more valuable over time. Simple tools are things that will last forever and you will need to use them forever, and it is better to have them now than to try to buy them later when they are ridiculously expensive.

 

[Stormblood]

" post_id=332935 time=1646948132 user_id=346]

" post_id=332082 time=1646718730 user_id=346]
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Thanks for explaining. And @Fuchs as well.

 

[Dahaarkan]

The most important thing for you to do when pursuing financial stability and liberation is to do wealth workings and empower your solar chakra consistently. The reality is each individual's path to wealth and financial liberation is unique as conditions and opportunities differ from person to person.

Focusing your spiritual power on achieving wealth and financial liberation, you inevitably find yourself being drawn to investments or opportunities that will bring you the wealth you desire.


Wealth is in the soul. And knowing this, you can be at ease that no matter what happens to the global economy, you will always be wealthy and secure at all times. I think discussing which are the right investments and opportunities to go for is ultimately pointless because this is down to the individual and what situation they find themselves in. An investment that brought one individual immense wealth may lead another to ruin and such.

The only advice that fits everyone no matter their situation or conditions, is money workings, and empowering your soul.