Dollar Debasement Hard Assets
Best of
@favoritetakes
−0.1%
since Sep 29
The idea
I believe persistent deficits and money printing will keep inflation running hot for years, steadily eating away at the dollar's value. To express this I own things that can't be printed: gold and silver miners, energy producers, farmland and timberland, commodity royalty companies, a small slice of Bitcoin, and a handful of businesses with real pricing power. I keep the spread wide since debasement tends to lift hard assets at different times, hold a bit of cash on the side, and avoid concentrating in any single name.
What it owns
- Gold and silver hold value when currency is devalued, and mining companies capture outsized profits as metal prices rise while their costs lag behind. · VanEck Gold Miners ETFIt holds major gold miners whose profits expand faster than the metal price when inflation persists, since their costs rise slower than what they produce., Wheaton Precious MetalsIt buys gold and silver from mining partners at fixed prices, so nearly all gains from rising metal prices flow directly to its profit., Agnico Eagle MinesIt is one of the best-operated gold miners with a consistent track record of converting higher gold prices into higher profits without cost overruns., Pan American SilverIt mines silver, which tends to outperform gold when investors flee to metals, magnifying the profits from a silver price surge., iShares Silver TrustIt holds physical silver directly without mining or management risk, so any increase in silver's dollar price flows to the trust.28%
- Oil, gas, and uranium prices feed directly into inflation and energy bills, so producers benefit when the cost of living rises. · Exxon MobilIt produces oil and gas, the energy inputs that flow into nearly everything, so its revenues rise when inflation shows up in energy bills., Canadian Natural ResourcesIt holds decades of low-cost oil reserves in the ground, a physical asset that becomes more valuable in dollar terms as currency is devalued., EQT CorporationIt is the largest US natural gas producer, and gas prices flow directly into electricity and heating bills, the core of inflation measures., CamecoIt mines uranium, a fuel with tight supply and growing demand from nuclear power expansion, making it a scarce input that holds value in currency debasement.17%
- Farmland, timberland, and infrastructure are physical assets whose rents and values rise when the general price level rises. · Brookfield Infrastructure PartnersIt owns pipelines, ports, and utilities where contracts automatically raise fees with inflation, turning a rising price level into higher revenue., WeyerhaeuserIt owns millions of acres of timberland that grows every year, a real asset whose value and rental income both rise with the price level., Gladstone LandIt owns farmland and collects rent from farmers, capturing inflation in food prices through land values and lease payments., Texas Pacific LandIt owns large Permian Basin tracts and collects oil royalties with almost no costs, combining land and energy in one position with minimal cash outflow.16%
- Royalty companies collect payments tied to commodity prices without bearing mining or production costs, so inflation in raw materials flows directly to earnings. · Invesco Optimum Yield Diversified Commodity ETFIt holds a diversified basket of commodities, oils, metals, and crops to capture inflation wherever it appears first across different asset classes., Franco-NevadaIt collects royalties on gold, oil, and gas production from operating mines and wells, capturing commodity gains with minimal cost inflation., Freeport-McMoRanIt is one of the world's largest copper miners, and copper demand from electrification and infrastructure adds to the hard-asset debasement story.15%
- Businesses that raise prices with inflation without losing customers protect their real earnings as currency loses purchasing power. · VisaIt earns a percentage of every dollar spent on cards, so when prices rise, its revenue rises automatically without any effort to raise fees., Waste ManagementIt collects trash removal fees from contracts that reset with inflation, and demand for garbage pickup stays firm even as prices rise., AltriaIt has raised cigarette prices faster than inflation for decades because its customers keep paying, showing pure pricing power in action.11%
- A fixed-supply digital asset represents a bet against currency debasement through scarcity rather than traditional mechanisms. · iShares Bitcoin TrustIt provides exposure to bitcoin's capped supply, making it a direct test of whether scarce digital assets hold value as fiat currency is printed.6%
- Cash8%