Coming inflation good for commodities

The likelihood of inflation resulting from the huge amount of money being injected into the economy by governments will be very positive for commodities.

Author: Evan Smith and Brian Hicks
Posted: Tuesday , 21 Apr 2009

SAN ANTONIO, Global Resources Fund (PSPFX) -

Higher inflation is coming. It's impossible to predict exactly when it will arrive, but the trillions of dollars worth of new money injected into the global financial system make it inevitable.

The prospect of inflation will likely be one of the key drivers for the energy and commodities sectors over the medium term. Inflation will eat away at the dollar and other paper currencies, raising the value of tangible assets as a hedge. In this way, commodities are similar to gold.

http://www.mineweb.com/mineweb/view/...