RE: bullion, inflation, deflation, options...
Best to consider m multiple angles on Y2K investing... Here's yet another view, for what it's worth.
US Government T-Bills, Notes, Bonds (i.e. USA debt)
Y2K will likely cause massive US government computer failures. That adds significant risk to "very safe" T-Bills, Notes & Bonds. How will that affect confidence in US government backed securities? USA has a huge debt deferred by international bond sales. If investors lose confidence, or ability to purchase USA bonds, the "safety" of USA backed debt may evaporate.
Price Inflations
If Y2K causes transportation problems daily consumables (gasoline, food, and their associated futures contracts) will skyrocket in price.
Price Deflation
If Y2K causes equity market collapse, real estate will fall in sympathy as margin calls force liquidation of assets. Luxury items (entertainment, recreational vehicles, art/collectables, ...) could also deflate for similar reasons.
Bullion
Gold bars make little sense for barter. Gold Eagles are a better bet. Natural denominations are 1, 1/2, 1/4, and 1/10 oz. Problably makes more sense to load up on the 1/10 oz coins than 1 oz coins. The key question whether will gold be seen as a "luxury item" or a hedge against currency failure.
Futures Options
Purchasing options on futures are the safest way to speculate on futures. The loss is limited to (and frequently is) the initial investment. Other futures investments are much riskier :-( |
