“I often receive questions on why property prices shouldn’t continue to rise with inflation. The difference is in the past. When the price of a certain commodity or asset has risen multiple times, it will decline even when inflation comes.
Let’s say that inflation in the future would double the general price level in a decade. Any commodity or asset that has seen its price more than doubled already may not be a good inflation hedge. The bubble phenomenon has made many commodities and assets bad inflation hedges.”
– Andy Xie, in his article ‘The Rise of Inflation Nations’, caixin.com, 6 Sep 2012
For those who claim that, if we see an inflationary period, Vancouver RE would be a good hedge. – vreaa