Hello everyone.
So, commodities can be a hedge against inflation (gold - safe haven, energy - inelastic demand, even when prices rise).
However, not all commodities can achieve this hedging effect - for instance, metals. Is hedging against inflation in this case realized with futures and options? Or is there smth am I missing here?
Many thanks!
I think there is something amiss. Generally 9 out of 10 times the storable commodities have psotive correlation with inflation. Most of the metals are storable in nature while the Agri commodities even with the best of the preervstion have shelf life. So why the example of Metal as a non inflation hedge given , seems out of bounds to me. May be, you wanna dig deeper.