Commodities to Profit From Schiff’s Currency Crisis

QE3 was announced on Thursday and it is by far the most aggressive action that the Fed has taken in years. Rather than set a specified amount of money to print, Bernanke and company have pledged to invest $40 billion per month in MBS until they see material growth in the economy. That means that this QE is open-ended and could potentially drag out for a while. If the program were to be in place for just one year, we would print $480 billion. For two and three years, we would add another $960 billion and $1.4 trillion respectively [for more economic news and analysis subscribe to our free newsletter].

While there is no guarantee of how long this program will extend, it can be said with certainty that the U.S. dollar will suffer for as long as the Fed chooses to dilute the money supply. In fact, Peter Schiff went as far to say that we are moving towards a currency crisis with the rampant printing. “This is a disastrous monetary policy; it’s kamikaze monetary policy” said Schiff. Mr. Schiff went on to state that he feels that what our economy truly needs is less money printing and higher interest rates, although Bernanke’s pledge to keep rates at near zero levels through 2015 leaves little hope for that.

As the dollar continues to weaken, one asset class in particular will begin to look very attractive, commodities. These hard assets are among the best in the financial world at providing a hedge against inflation as well as a weakening dollar. It is widely agreed that at some point in the near future, all of the money printing combined with our massive debt will lead to hefty inflation, making commodities a great long-term buy right now. Below, we outline several funds to help you take advantage of a flailing greenback [see also Why QE3 is Just Delaying the Inevitable].

PowerShares QQQ Trust, Series 1 (ETF) (QQQ)

PowerShares DB Com Indx Trckng Fund (NYSEARCA:DBC):This fund invests in the 14 most heavily traded commodity contracts in the world, giving you exposure to assets like gold, crude oil, and corn among others. The fund has more than $6 billion in assets and trades over 2.4 million times each day.

PowerShares DB Agriculture Fund (NYSEARCA:DBA): Many feel that inflation will hit food prices the hardest, making an agricultural play ideal to keep up with runaway prices. This fund invests in a variety of agricultural futures and has enjoyed a return of nearly 25% in the last three years [see also Jim Rogers: The Agriculture Industry is Doomed].

ETFS Precious Metals Baskets Trust (NYSEARCA:GLTR): Precious metals are another commodity group that are expected to soar with more QE, and already have done do. This fund invests in physical gold, silver, platinum, and palladium. Its trading volumes are relatively low, but note that as an ETF, the creation process allows for instant liquidity no matter how low trading volumes go.

This article was originally written by Jared Cummans, and posted on CommodityHQ.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!