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miércoles, 7 de octubre de 2009

WHAT TO BUY AGAINST INFLATION : MY WARNING!

This is a great warning.

I see "guru-type" newsletter telling INVESTORS "don`t buy gold, buy this instead..."articles

They are telling people to buy inflation-adjusted investment vehicles like TIPS or, some kind of ETF's that get "magically adjusted " in case of inflation ....the NUMBER of inflation MENTIONED BY THE GOVERNMENT.

Maybe I am not clear, but the point is:

one of the greatest scam during restructuring of the argentinian debt was to manipulate the INFLATION INDEX. So , investors accept new inflation-adjusted bonds because they felt it was a wise and amazing vehicle in a inflationary environment like Argentina. They thought they were smart.
The government tricked the inflation index. And investors suffered since they did not get or won`t get "inflation adjusted income". A nice scam :) So you want to protect yourself against inflation and against your government? Then dont buy investment that DEPENDS of a BUROCRAT decision.

if you want a real protection against the central banks, governments, and burocrats, buy something that "will adjust" and it is not a "investment fund", or a "ETF" , or a "ETN", or something that anyway con easily print ( like shares) and create more of it.
Buy they physical. It is hard to find the physical, it is hard to sell it, it is hard to smelt it.
You will learn that THIS IS THE ULTIMATE PROTECTION .
The physical gold or silver. Learn from the experience. Avoid "inflation-adjusted scam papers" investment vehicles.

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