> it's appreciating much faster than inflation over its life
I have no doubt that people who bought in early have beat inflation very well, but that doesn’t make it an inflation hedge. It doesn’t move inversely from inflation.
I have no doubt that people who bought in early have beat inflation very well, but that doesn’t make it an inflation hedge. It doesn’t move inversely from inflation.
FTA: "An inflation hedge is an investment that is considered to protect the decreased purchasing power of a currency that results from the loss of its value due to rising prices either macro-economically or due to inflation. It typically involves investing in an asset that is expected to maintain or increase its value over a specified period of time. Alternatively, the hedge could involve taking a higher position in assets, which may decrease in value less rapidly than the value of the currency."