Lux Investing

Will commodities or commodity stocks do better in an inflationary environment?

I read an article saying that in times of high inflation investing in commodities provides the best return while stocks don't do as well. My question is if there is inflation to come is it better to be in commodities outright or invested in stocks of companies that produce commodities?

Public Comments

1. Both. But choosing companies can run you into other factors, like political risk and currency risk and labor unrest and increasing costs and more. Your commodity could explode and the company could get nationalized or go bankrupt.
2. Some commodities do well during inflationary or deflationary times - but NOT ALL do well. For example, GOLD and GOLD STOCKS are probably the two best investments you can make during both inflationary and deflationary periods. Gold has been the standard on which most countries base their currencies for centuries. America used to be based on the Gold standard. So there are many good Gold stocks that you can buy if you don't want to buy Gold bullion. Do a search for Gold stocks on yahoo finance to see what comes up. http://stocksbuyorsell.com/stocks-buy-sell/318-how-buy-sell-stocks-online.html