What To Own As The U.S. Dollar Dies

The Market Oracle ^ | 7-5-2014 | Dr. Steve Sjuggerud - Daily Wealth

[blam]

July 04, 2014
DailyWealth

Dr. Steve Sjuggerud writes: So... if the dollar "dies"... what do you do with your money?

In yesterday's DailyWealth, we looked at "The Coming Death of the Dollar." But we didn't cover what you should do with your money to protect yourself.

In Jim Rickards' book, The Death of Money, he has five recommendations. More specifically, he has an asset allocation of five different investments that have stood the test of time in previous inflations and deflations.

Jim says this portfolio should offer "an optimal combination of wealth preservation under conditions of inflation, deflation, and social unrest... while providing high risk-adjusted returns..."

So what's in it?

Jim's recommended "Death of Money" portfolio is:

* 20% gold
* 20% land
* 10% fine art
* 20% alternative funds
* 30% cash

Let's take a look at each of these in a little more detail...

Gold (20%) should do well in extreme inflation... AND deflation. Jim recommends that you physically own gold itself – not an exchanged-traded fund (ETF) or a derivative.

As for land (20%), Jim prefers undeveloped land. Jim believes that land like this "can be developed cheaply at the bottom of a deflationary phase, and provide large returns in the inflation that is likely to follow."

For fine art (10%), Jim is talking about "museum-quality" art. He specifically excludes things like antique cars and wine. He says "a $10 million painting that weighs two pounds is worth $312,500 per ounce, over two hundred times gold's value by weight, and will not set off metal detectors."

I personally asked Jim how he recommends that people buy the kind of art he's talking about. He told me there are art "funds" that hold museum-quality art. (www.TheFineArtFund.com is an example.)

(snip)

[loungitude]

The dollar is going to die, so you keep 30% in cash as a remedy?

[blam]

If All Else Fails, You Eat Your Kids

You can either continue to sit in front of your TV, and work your job, and drive to the supermarket, and check your stocks 10 times a day. Or you can put your energy into ensuring that either the system ends, or that you and yours stop depending on it.

Door number 1, you eat your kids’ futures.

Door number 2, you fight for their futures.

That’s all the doors there are. And there’s precious little time left to make your choice

[loungitude]

Fine art?

[KarlInOhio]

I personally asked Jim how he recommends that people buy the kind of art he's talking about. He told me there are art "funds" that hold museum-quality art.

If you can't carry it with you (or at least shoot someone for trying to take it from you), you don't really own it. Will at art hedge fund really be safe when the dollar collapses? Hey, I own 1% of the Mona Lisa! And I want it mailed to me now.

I'm investing in wheelbarrows.

[Lurkina.n.Learnin]

So insist on physical possession of gold but buy art thru a fund. Hmmm....

[nascarnation]

I pulled out all the equity in my house and mortgaged for 30 yrs at 3.75.

I hope to pay it back with Obama/Yellin/Fauxcahontas mini-bucks.

[datura]

Tool steel, copper, brass, powder, gold, fuel, food, alcohol.

[Maine Mariner]

Sure, you can buy a quarter of an ounce of gold; it is difficult to own a quarter of a piece of fine art.

[lowbridge]

Guns and ammo

[MosesKnows]

if the dollar "dies"

Perhaps this is all good advice but I think it is wise to maintain a perspective that fits the reality.

There is a huge difference between currency that is worth less and currency that is worthless.

[Maine Mariner]

I commend you. I must say that flies in the face of everything my parents taught me-but they lived through the Great Depression and WWII. They built their first and only house in 1946 and paid it off by about 1956.

[Recovering Ex-hippie]

Hey..You just gave me an idea...I could refi my condo, take the money out, pay off my debts ( was out of work several years ago and still paying that off!) and then carry a 30 yr mortgage..duh, with inflation, it won’t be a problem to pay it/.

[nascarnation]

Only time will tell.
We all know the debt is unsustainable.
But only the really smart (or lucky) ones know when to bet heavy on it.

[Maine Mariner]

I am sure George Soros and the other Rat hedge fund operators will know exactly when to sell the dollar short.

[Veggie Todd]

Fine art?

Yes. You wouldn't want unfine art, would you?

[Chode]

sure, high end and antique firearms...

[nascarnation]

I want to be the next John Paulson.

Odds of that happening, about the same as Hillary Clinton turning $1000 into $100,000 trading cattle futures.

[Gaffer]

Iron brass and lead

[Resettozero]

The dollar is going to die, so you keep 30% in cash as a remedy?

Hard to figure, that one. The other remedies are not very portable when you're running for your life from your home that has been overrun.