Commodities provide new horizons

Sunday Star-Times | August 23, 2009| | Copyright

Kiwis are increasingly investing in commodities as a classic inflation hedge. Garry Sheeran backgrounds a fast-growing trend. HARD TO believe right now, but hedging against inflation might be the next big headache for investors, especially those who have been piling into bonds with apparent abandon.

The "free" money still being pumped into the global financial system is going to manifest itself in runaway inflation that will decimate bond portfolios as it did in the 1970s, warn commentators alternately dismissed as fear-mongers, or hailed as realists.

In the near-term it's not a problem at ...

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