Inflation and metals vs metal equities
If we do experience large inflation (which I think we will), commodity price increases always lead to consumer price increased (why wouldn't a sector raise prices if their costs increase?). However, wall street hates inflation, so stock prices may not react so nicely. So if one truly believes a precious metal is a good hedge against inflation, then you should be buying the actual, physical metal...how could you be bearish on equities and buy metal miners? I am bullish on metal miners, but for non-contradictory reasons. Inflation is bad because of "menu costs" and "shoe leather costs" and redistribution of wealth...but its not the end of the world...stuff gets more expesnive, and peoples incomes go up (people forget this second point...where else would the money go?
I'm probably wrong somewhere, so tell me where