We Study Billionaires - The Investor’s Podcast Network TIP426: Gold and Commodities w/ Lyn Alden
Feb 27, 2022
Investment expert Lyn Alden joins to discuss the crucial interplay between gold, commodities, and inflation. She explains why commodities thrive in inflationary times and how different generations perceive gold. Alden shares strategies for investing in commodities, the risks of market manipulation, and the importance of comparing gold prices to real interest rates. Delving into the future, she speculates on the next monetary system and debates whether to own physical gold or gold stocks.
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Commodity Performance and Inflation
- Commodities perform well during inflation because rising prices directly increase their value.
- Companies, with their ability to compound growth through employees, should outperform commodities over the long run.
Gold vs. Other Commodities
- Gold acts more like a currency than a commodity due to its high stock-to-flow ratio and historical use as a store of value.
- Unlike other commodities, physical gold offers protection against confiscation during financial crises.
Cultural Perceptions of Gold
- People's perceptions of gold vary based on where they live and their experiences.
- In Denmark, people trust the kroner and see gold as unnecessary, while in Asia, it's seen as safe.
