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View Full Version : Investing in wood/building material as a hedge against inflation??



Castillb2010
04-28-2011, 01:07 PM
I don't spend much time at the hardware store, so my question is, has there been a noticeable increase in the price of wood and/or other building materials? I have a decent stack of PM already, so I've started to cut back on the amount that I'm buying. Because of this, I'm now looking for somewhere else to invest some money outside of the stock market. So yesterday I was watching some emergency preparation videos on youtube.com, and came across one where this guys was stalking up on building material for a SHTF scenario. Thats when I got an idea....I live in Los Angeles, and in my neighborhood there are alot of illegal immigrants (not all) who do construction work such as roofing, carpentry, remodeling, etc.. So I thought, would there be money in begining to stock up material now and selling it later at a higher price, but cheaper than say a Home Depot, Lowes, etc....???

Moonstruck
04-28-2011, 01:18 PM
If I was buying building supplies and I am not. Plumbing and electrical items ( copper ) would be safer from fire and rot damage. Wood is not my idea of a good investment. Other than haveing an extra 2 or 3 cords for my woodpile.

The people buying copper killo bars are mostly geting overpriced heavy copper busbars. That have been stamped .999 :eek:

Prospector
04-28-2011, 07:58 PM
If I was buying building supplies and I am not. Plumbing and electrical items ( copper ) would be safer from fire and rot damage. Wood is not my idea of a good investment. Other than haveing an extra 2 or 3 cords for my woodpile.

The people buying copper killo bars are mostly geting overpriced heavy copper busbars. That have been stamped .999 :eek:

There is no spot market for wood. And you are betting on a very specific type of collapse. If you guess wrong your investment has no value.

Silvercoin
05-02-2011, 10:05 PM
I'd stock up on canned foods, toothpaste, tooth brushes, soap, generators, batteries...etc. stuff that lasts a long time and is easily tradeable... if you believe in the hyperinflationary/shtf scenario.

nofixedaddress
05-03-2011, 06:27 AM
I don't spend much time at the hardware store, so my question is, has there been a noticeable increase in the price of wood and/or other building materials? I have a decent stack of PM already, so I've started to cut back on the amount that I'm buying. Because of this, I'm now looking for somewhere else to invest some money outside of the stock market. So yesterday I was watching some emergency preparation videos on youtube.com, and came across one where this guys was stalking up on building material for a SHTF scenario. Thats when I got an idea....I live in Los Angeles, and in my neighborhood there are alot of illegal immigrants (not all) who do construction work such as roofing, carpentry, remodeling, etc.. So I thought, would there be money in begining to stock up material now and selling it later at a higher price, but cheaper than say a Home Depot, Lowes, etc....???

Fwiw, 2 years ago I bought stainless steel fastenings [mainly decking screws] at auction for roughly the scrap value of stainless ... takes up some basement space tho. I have a friend who stacks high end lumber that he has bought at auction, he's a cabinet maker so it makes [cents] ... another guy bought up consignments of outboard engines after the collapse in 08, he's been selling them on ebay often doubling his investment [many shipped to Russia ? ] ... cash is king, tho I'd wait for the next leg down in the economy to buy anything ... worth remembering, since the Fed scrapped "mark to market" it's impossible to value anything ... just my 2[deflated] cents.

Skilled_Kangaroo
05-03-2011, 06:54 AM
Why invest in something that may or may not appreciate when you can invest in something that is very likely to appreciate?

nofixedaddress
05-03-2011, 10:57 AM
Why invest in something that may or may not appreciate when you can invest in something that is very likely to appreciate?

I'm all ears ... what is very likely to beat inflation and deflation ... looking at historical prices, should I dump all physical pm's and buy a condo in Boca ?
... risk premiums aside.

OldPocketChange
05-03-2011, 03:54 PM
If you google "lumber open market" you will get lots of information with regards to buying wood products.

Here is a page with a few headlines for you.

http://news.tradingcharts.com/futures/headlines/Lumber.html

Skilled_Kangaroo
05-03-2011, 03:58 PM
I'm all ears ... what is very likely to beat inflation and deflation ... looking at historical prices, should I dump all physical pm's and buy a condo in Boca ?
... risk premiums aside.Huh? I was talking to the OP, who was contrasting investing in PMs to investing in wood. What are you talking about?

nofixedaddress
05-03-2011, 04:09 PM
Huh? I was talking to the OP, who was contrasting investing in PMs to investing in wood. What are you talking about?

Sorry for the confusion, just saying PM's are historically high whereas there are many other asset classes that are historically low.