oh hell yeah... and according to the BATF, anything over 50 is considered a curio or relic
Posted on 07/05/2014 11:52:55 AM PDT by 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)
(Excerpt) Read more at marketoracle.co.uk ...
“why only have 20% gold? why not 40%?”
*****
The expectation that cash in the short-term when the SHTF will be extremely valuable. You’ll have green pieces of paper that others don’t to buy goods and services. Those with just debit/credit cards will be screwed.
Groupthink will not have fully devalued the fiat currency yet nor have merchants had time to recognize and adjust for transactions involving precious metals instead.
Remember, this is short-term taking advantage of SHTF chaos and the lack of cash in the pockets of most people.
The unanswered question is whether one can take advantage of having cash on hand before the EBT crowd decides to simply loot the businesses you’d buy from with cash.
“Alas, Babylon” by Pat Frank has a pretty good take on this issue. At first, there’s a run on the bank. It takes a little bit to sink in that the money they’re trying to get from their accounts is worthless pieces of paper. Written in 1959, based on a nuke SHTF, it’s still timely because people haven’t fundamentally changed.
I wouldn’t be out bargain shopping.
when gold spikes and stops trading as the dollar crashes, I’ll be traveling to my bug out spot without stopping. I’d guess you’d have 3-5 days from the time gold spikes to get secured
we did ours for 15 @4%.....replaced a Prime rate + zero home equity loan....at least now we have a set rate...we’re forced to pay it down as well...with the Heloc we could just pay the interest if we wanted...
They are an interesting lot. The wife bugged out years ago (maybe she was made into compost? LOL!) yet his ADULT children continue to live with him and have no desire to move on to families of their own. The ‘kids’ have always seemed a tad ‘off’ to me.
They do accomplish a LOT, and I have read their blogs and integrated some of their ideas into my little farm, through the years.
Good luck with your strategy.
And always remember God, guns, and guts made America great.
I keep ammunition. It keeps for indefinite with a little care. It’s completely fungible. It’s in constant demand. I predict that the .22 lr round will be the next dollar after the USD funny money collapses in the next few years. Buy thousands of rounds.
Thanks for the info FRiend. Sounds like you made a good buy. The only downside I can see is that you’re probably going to be on the northern border of Mexico in a few years....
Now that is a GOOD ONE! LOL She'd probably turn purple, start cussing and reach for a drink. Either that or do that insane laugh of hers.
You are very well prepared. I wish the same were true for me, we have much of what you have but not all. If TSHTF then lots of medical/hygiene supplies are handy. But also candles, which the wife has a lot of. If electricity is out then candles are a must. Also lumber and plywood along with nails and screws for defensive purposes (to slow down burglars). That I have. Also have lots of TP, soap and water bottles for barter.
Something I read in more than one place, says if the dollar collapses and the government devalues it into new dollar bills, that they would recall old dollar bills but not change. Ten old dollars becomes one new dollar; however a quarter worth old $0.25 in change becomes new $0.25, worth $2.50 in old dollars - you make money on change. It's not worth the governments time and labor to recall change during a changeover. Happened before, will happen again.
The wife has tens of thousands of coins around, it's unwieldy and heavy to move around and a hassle! And yes, 1982 and earlier copper pennies are worth more. The later ones are mostly zinc, toss them back into circulation.
Lots of Ammo.
The Browning Automatic Rifle is almost 100 years old. Guess that makes the BAR an antique!
oh hell yeah... and according to the BATF, anything over 50 is considered a curio or relic
You keep 30% to have on hand for the initial death rattle, when they have asset seizure, 401K seizure, and bank closures.
That 30% is what you need to live on in the final days of the dollar, when most don’t know it is its final death and you are still able to buy the absolute essentials.
I understand your confusion (or sarcasm).
The list is confusing because the author of the piece is not thinking correctly, which is two scenarios.
The first is a complete breakdown of society that sends us back to the dark ages for a few years at least. In that situation, you need only survival goods and skills and partners.
The second (which the author assumes) is the dollar dies and we go into a severe recession (newsflash, we’re already in one) or major depression. As the dollar dies, people lose all their savings and most importantly the purchasing power of those savings. The fine art item on the list is for this situation when the author assumes we will rise back out of the recession/depression but with a new currency in place. When that currency takes off and becomes established, the people who have that currency will buy the fine art and replenish the purchasing power that had been lost when the previous currency died.
You’re assuming that the inflation will result in higher wages that trail behind the increased cost of goods and services.
That is historically the case, roughly so, even though there is usually a very painful lag period.
In this situation (the death of the dollar) wages will not trail behind the rising costs of goods and services. A credit/debt-based recession (as opposed to an inventory-based recession, which is what comprises 95% of the recessions we’ve had since the Great Depression) will see the destruction of jobs so that very few have the money to spend. Those that do, the large majority, will not be making much money because they will be glad to be employed.
This is their goal and that is why they are issuing currency (albeit digital and only to the first tier banks and financial institutions)...one last hurrah to let the rich multiply their wealth while the middle class is crushed down into the lower class once and for all.
No silver?
Thanks. I agree with your response in post 96.
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