Tuesday, 18 October 2011

Profit from inflation with gold, oil

Profit from inflation with gold, oil

Prices for many commodities have taken a beating, so you can buy now and profit from the next round of rising prices. Here’s a look at gold, oil and four other key areas.
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Gold; platinum rings; oil rig.\ © Chris Ratcliffe/Bloomberg via Getty Images; © Fancy/Alamy; © Ed Freeman/Getty Images
An opening for investors
Americans are painfully familiar with inflation by now. Grocery prices are soaring, gas is considered cheap if you it's less than $3.50 a gallon, and paychecks just don't go as far as they used to.
But prices for the raw materials behind many of the things we buy have fallen of late. You may not see it at the gas pump, but you will if you invest in those raw materials. And if you act before the upward march in prices resumes, you stand to score a nice profit.
The opportunity is clear. Don't just get mad at inflation -- get even. When raw material prices start rising again, you can share in the profits.
Following is a look at six commodities that are volatile now but could be good long-term investments that make inflation work in your favor -- along with the commodity-focused exchange-traded funds that make buying simple.
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