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)

[B4Ranch]

I know that you’re a gal. The 22-250 will perform out past 1000 yards with ease. I hope you don’t need your Tomcat.

[SkyDancer]

Thanks - I shoot a varmint round that clocks at 4000fps - as for the Beretta - in the words of that great street philosopher “I pitty th’ foo’”

[B4Ranch]

If you want to attain real accuracy, I suggest looking at the 85 videos so you’ll understand the finer details of long range shooting.

[Chickensoup]

Not silver? Interesting.

[familyop]

On land, a few suckers came to my area and overpaid for undeveloped land during the last 15 years or so. They come once in a while to stare at it for an hour or so then return to their suburbs. Real estate hasn’t started falling as it should, yet. Prices are propped up by mortgage holders who’ve found ways to hold it without selling. That way, property taxes continue to be propped up. Must somehow be a connection between the two. Real estate will eventually begin to fall as much as it really should and will continue to fall for decades.

[pterional]

Owning a farm and trying to be self sufficient during a collapse is a romantic idea but would be difficult. All these illegals and ghetto trash are going to leave the cities looking for food . Fighting the zombies will be impossible because there will be no way to stop several hundred people that are stealing your animals or produce. It will be like living in the dark ages where you need group protection to survive.

I think the best thing would be to have assets and a place to run to outside the US but they have closed that loop hole.

[SkyDancer]

I have four guys in my life: My dad, former Marine pilot, my uncle a chopper pilot (both in 'Nam) and two brothers one a chopper pilot the other a weapons officer who served in Iraq. I learned field craft when I was 11, taught to shoot when I was 7. ... my uncle showed me how to use a ghillie suit and I had to make my own. I stalked wildlife with my camera in it. my uncle is a range officer at the local gun range. They have a 300yd. range there. Here's where I learned.It's my back yard

[Georgia Girl 2]

You sound like you are good to go.

[sten]

then why only have 20% gold? why not 40%?

[lonestar]

I know this is a dumb question...but, would change be worth more than paper dollars?

Is it true that copper- pennies are worth more than one cent now?

[MaxMax]

2.Farm land were you can grow some food and hide from the Gov.

The land should be maintained to accept planting if or when needed. Fertilize
it on a reg basis and the plant food will be so deep that it should sustain
crops well for years. A simple task if you mix your own fertilizer.

A good woman with a plow would be priceless.

[MaxMax]

I like edible family pets. Chickens are entertaining too. I would not want
to be near that house if the SHTF and people are starving. A Hippie without a gun
in LA is a dead hippie, you cannot kill them all either.

[Fear The People]

BOOK: "When Money Dies"

[maine-iac7]

I would not want to be near that house if the SHTF and people are starving.

Exactly. Wiped out in minutes

[Hoodat]

With a Fed that continues to print up $80 billion per month in new money, I really cannot fault your reasoning here. Just don’t forget to set something aside for the new federal real estate taxes that will be coming down the pike.

[Hoodat]

I’m having difficulties with the second part of item 3.

[Diana in Wisconsin]

Darn right! I’m gonna be revered as a Goddess, because I can bake bread from scratch, load my own shells and stitch up a wound! :)

[Diana in Wisconsin]

BUMP for later. :)

[Diana in Wisconsin]

BUMP for later...Thanks.

[Diana in Wisconsin]

BUMP for later. Thanks!