FMF - Friends of Minerals Forum, discussion and message board

[alfredo]

Thanks for the calculation, Matt! I don't know the official inflation averaged over the last 100 years, but I'd guess the mineral has appreciated slightly faster than the inflation rate?

[David Von Bargen]

An interesting calculator for various indices
https://www.measuringworth.com/uscompare/
(link normalized by FMF)

[Matt_Zukowski]

Using the interesting link posted by David and my trusty spreadsheet:

The CPI for the last 100 years rose 3.24% per annum, which would have increased $1.25 to $30.40.

The CPI for the last 90 years rose 2.8% per annum, which would have increased $1.25 to $15.50.

[GneissWare]

So the logical conclusion is that minerals are an excellent hedge against inflation. I intend to start making this argument to the spouse next time I buy something.

[Matt_Zukowski]

That's the argument I would make!

But seriously, it would be better to say that mineral specimens HAVE BEEN an excellent inflation hedge. The future is uncertain. Housing had been an excellent inflation hedge unless you bought after sometime around 2005. The stocks in many indices were an excellent inflation hedge from 1982 to 2000, but haven't kept up since. It seems likely to me that fine collectibles will be a good inflation hedge over long time periods assuming you can find a buyer. But the short run may be problematic because of the rapid appreciation over the last decade.