Thanks, Bob. I think physical silver is a better hedge
than physical gold, and for a good reason. In 1933, gold
was taken away from people, in exchange for $20 (per OZ),
then it's price was hiked to $35. In more recent history,
nations in currency crises collected gold from citizen.
It happened before. Who said it won't happen again? I
don't think they will take away silver.
As for I-bond, it could be good enough, if you trust
US government inflation estimates. I think they are
consistently lower than reality, due to well-known
hedonics. So the real rates on I-bonds are still negative.
Bonds in other countries may be a better deal at this
point. All currency crises in other countries ended in
defaults on some kind of external debt of the governments.
In USA, 10-year treasuries are widely held by foreigners.
There are essentially 2 ways out - currency depreciation,
or T-bond default. I think they may consider the second
option, if there is hyperinflation, in order to stop the
dollar collapse. |
