The writing is on the wall. It won’t be long until we look back at the recent Federal Reserve infusion of $600 billion in cash we didn’t have into the economy as the precipitating event that sent us headlong into perhaps the final bout with inflation before it disintegrates into a healthy little demon from Hell known as hyperinflation. Don’t spend too much time worrying about hyperinflation though; it won’t be here forever. Just long enough to drop kick the economy out of the gutter and into the sewer.

Having said that, let’s get positive! We continue to hear the nattering of gold bugs in our ear. You know who we’re talking about, the gold brokers and investors who are convinced that particular precious metal will be the savior of the universe. At AIPIS, we have many issues with gold investing, and one of them is the fact that it’s a defensive strategy. That sticks in our craw. To use a sports analogy, playing the game not to lose is a much different than playing to win. Buying gold is the former. Packaged Commodity Investing the latter.

Here’s why we say that gold investing is nothing more than a fearful do-anything-not-to-lose approach. What use is gold actually? Yes, historically, it has been more useful as currency than paper money but, other than that, what do you do with gold after you buy it? Most investors stick it in a safe deposit box somewhere, cross their fingers and pray TEOTWAWKI (the end of the world as we know it) doesn’t arrive today.

We prefer Packaged Commodity Investing as an improvement on the credible idea that a commodity is more useful than paper. Very true. In our eyes, income property investing is simply a more profitable way to engage in commodity investing (thus the moniker “Packaged Commodity Investing), for what is a house except a bundle of basic commodities with the value-added of labor to create something inherently useful – a place to live? Believe us, shelter over our head will never go out of fashion.

So gold is certainly the investment for you if you’re a ‘fraidy cat shrinking from every approaching shadow. We prefer an offensive way of thinking that says we’re not waiting around here for profit to maybe or maybe not fall our way. We’re going out to grab the thing by the neck and wring it until it spews a financial empire – no matter what the economy at large does.

The AIPIS Team

Flickr / Sukanto Debnath