6. Commodities as inflation Hedge

Not All Commodities React the Same to Inflation

Though we may think of commodities in general as being inflation hedges, it’s actually a very mixed bag. The best performers historically have been precious metals and energy. But other commodities, such as industrial metals and many agricultural products can actually decline in price as physical demand declines due to financial constraints.

Leave a Reply

Your email address will not be published. Required fields are marked *