A Safeguard Against Inflation and Deflation
- Cash would be good in a deflation.
- Cash would be bad in an inflation.
What stores value equally well in any environment?
Real estate – meh, not so much. I’m thinking (once again) – gold.
Of course, in a deflation cost per ounce goes down, however theoretically (and practically?) that ounce of gold can buy you the same amount of “widgets”, because “widgets” now cost less as well.
I’ll try to buy some gold from Questrade tomorrow.
Update: I changed the subject of the post, accidentally put in “Depression” instead of “Deflation” 🙂 oops, Freudian slip.
And I decided to put off buying of the physical gold until $850 is tested.