Buying A New Tractor As A Hedge Against Inflation.

[npalen]

Could investment of cash in a new tractor be considered a long term hedge against potential inflation and worldwide financial uncertainty?
The tractor would be kept inside and used only sparingly and for hobby purposes. I realize that the rate of inflation is currently very low compared to the past.
I also realize it wouldn't have a lot of upside potential but, then again the same can be said for current interest rates on savings. Part of the "return" would be the pride of owning a new shiny tractor.

 

[4570Man]

If you need a tractor that is one thing. If you are trying to prepare for a market crash or hyper inflation I would invest in guns, ammunition, adult beverages, tobacco products, and toilet paper. You could trade for anything else. Just my two cents.

 

[Jarrod32]

I wouldn't look at it strictly as an investment as such. If you need/want a tractor to use, it is an investment that will (should) hold its value over time. But if that is your focus, you probably want to look to used tractors rather than new, as the initial depreciation is usually the steepest decline in value.

The Ford N series tractors, for example, seem to hold their value well over time. Another that comes to mind are the 1960s era John Deere tractors...think 4020 or 3020 models, for example. Buying a tractor like that now will likely hold its value for you.

But if you are looking strictly for an investment as an inflation hedge, stick with precious metals or real estate.

 

[/pine]

If you need a tractor that is one thing. If you are trying to prepare for a market crash or hyper inflation I would invest in guns, ammunition, adult beverages, tobacco products, and toilet paper. You could trade for anything else. Just my two cents.

Good answer IMO...right now you can buy a mid quality pistol an extra clip or two and box of 9mm etc.,etc...for less than a third of what an ounce of gold costs...In a SHTF scenario...the firearm and ammo will be greatly coveted...and be worth many times current values...

 

[4570Man]

Good answer IMO...right now you can buy a mid quality pistol an extra clip or two and box of 9mm etc.,etc...for less than a third of what an ounce of gold costs...In a SHTF scenario...the firearm and ammo will be greatly coveted...and be worth many times current values...

An a real SHTF scenario what is gold good for? Boat anchor? Any of the items listed above will be worth far more. And you can buy a whole lot more of it than gold or silver.

 

[/pine]

...what is gold good for?...

A coffee can full of Krugerrands makes a good door stop...:laughing:

 

[Jarrod32]

Seeking an investment as an inflation hedge is one thing. Precious metals are fine there.

Preparing for a SHTF scenario is another. And 4570Man's list above is a good start if you are going there. I would add such simple items as motor oil and dishwashing soap to a list of tradeable items.

Are you seeking a simple hedge against inflation, or preparing for a SHTF scenario? Two different issues. I was addressing the identified issue, a simple hedge against inflation.

 

[4570Man]

A coffee can full of Krugerrands makes a good door stop...:laughing:

Yeah, I have some lead blocks that make a pretty good door stop. If the need arises it can be converted into bullets. At its peak lead was bringing $1 per pound. It's down quite a bit now. Heck of a lot cheaper than gold.

 

[4570Man]

Seeking an investment as an inflation hedge is one thing. Precious metals are fine there. Preparing for a SHTF scenario is another. And 4570Man's list above is a good start if you are going there. I would add such simple items as motor oil and dishwashing soap to a list of tradeable items. Are you seeking a simple hedge against inflation, or preparing for a SHTF scenario? Two different issues. I was addressing the identified issue, a simple hedge against inflation.

I believe I would add some 4 and 20 pound propane canisters to the list. Some personal hygiene products wouldn't hurt either. Don't forget coffee and sugar.

 

[Looking4new]

Personally, I think you would be better off owning precious metals. ie. physical gold and silver. But that is me. A tractor is only worth as much as someone wants to pay for it. If the dollar goes for a dump and becomes worthless, gold and silver will become the currency.
Like I said, that is my opinion and sure as God made little green apples someone will jump all over my statement.