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What To Own As The U.S. Dollar Dies
The Market Oracle ^ | 7-5-2014 | Dr. Steve Sjuggerud - Daily Wealth

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 ...


TOPICS:
KEYWORDS: dollar; dollarcrash; dollars; economy; finance; investing
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1 posted on 07/05/2014 11:52:55 AM PDT by blam
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To: blam

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


2 posted on 07/05/2014 12:00:16 PM PDT by loungitude (The truth hurts.)
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To: 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

3 posted on 07/05/2014 12:00:37 PM PDT by blam
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To: blam

Fine art?


4 posted on 07/05/2014 12:00:43 PM PDT by loungitude (The truth hurts.)
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To: blam
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.


5 posted on 07/05/2014 12:01:07 PM PDT by KarlInOhio (The IRS: either criminally irresponsible in backup procedures or criminally responsible of coverup.)
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To: blam

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


6 posted on 07/05/2014 12:01:55 PM PDT by Lurkina.n.Learnin
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To: KarlInOhio

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.


7 posted on 07/05/2014 12:02:42 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: blam

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


8 posted on 07/05/2014 12:03:05 PM PDT by datura (We have a 2 party system. Conservatives vs Uniparty)
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To: Lurkina.n.Learnin

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


9 posted on 07/05/2014 12:03:59 PM PDT by Maine Mariner
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To: blam

Guns and ammo


10 posted on 07/05/2014 12:04:08 PM PDT by lowbridge
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To: blam
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.

11 posted on 07/05/2014 12:05:18 PM PDT by MosesKnows (Love many, trust few, and always paddle your own canoe.)
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To: nascarnation

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.


12 posted on 07/05/2014 12:06:23 PM PDT by Maine Mariner
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To: nascarnation

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/.


13 posted on 07/05/2014 12:08:31 PM PDT by Recovering Ex-hippie (Bush won the War in Iraq, Obozo lost the peace..and gave Iraq back to the Terrorists!)
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To: Maine Mariner

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.


14 posted on 07/05/2014 12:08:45 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: nascarnation

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


15 posted on 07/05/2014 12:14:13 PM PDT by Maine Mariner
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To: loungitude
Fine art?

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

16 posted on 07/05/2014 12:15:23 PM PDT by Veggie Todd (The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. TJ)
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To: loungitude
sure, high end and antique firearms...
17 posted on 07/05/2014 12:16:50 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: Maine Mariner

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.


18 posted on 07/05/2014 12:18:03 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: loungitude

Iron brass and lead


19 posted on 07/05/2014 12:21:59 PM PDT by Gaffer
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To: loungitude
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.
20 posted on 07/05/2014 12:23:44 PM PDT by Resettozero
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To: blam
1. Weapons

2.Ammo to feed them

All else will fall into shape

21 posted on 07/05/2014 12:23:54 PM PDT by SkyDancer (If you don't read the newspapers you are uninformed. If you do read newspapers you are misinformed)
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To: blam
Door number 1, you eat your kids’ futures.

My kids have eaten their own futures.

They have been too foolish to work for their own futures and I feel no obligation to do it for them.

There will be no inheritance for them. If I leave any assets behind when I go they will not be the recipients.

22 posted on 07/05/2014 12:24:14 PM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: nascarnation

I thought Hillary’s financial performance on those trades was nothing short of brilliant (sarc).


23 posted on 07/05/2014 12:28:56 PM PDT by Maine Mariner
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To: Maine Mariner

One FReeper came up with the best snark ever.
Have Hillary’s interviewer ask her (after she claimed to be broke) “why didn’t you get back into commodity trading?”


24 posted on 07/05/2014 12:32:45 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: blam

This guy is so wrong I don’t where to start.

Land? Yeh farmland where you can grow something.
Cash? Uh no the dollar is dying.
Gold? Maybe some fractional coins but junk silver is better
Art? OK if you can eat it.

How about Food, ammo, medicine, booze, toilet paper and a water filter.


25 posted on 07/05/2014 12:40:21 PM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
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To: blam

M4L


26 posted on 07/05/2014 12:42:21 PM PDT by Scrambler Bob (You can count my felonies by looking at my FR replies.)
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To: SkyDancer
Having custody of a loaded weapon does not arm you. The skill to use the weapon is what arms a man.

Conflict is inevitable; Combat is an option. Train for the fight.

Introduce your rifle to the world of long range targets. Long range precision shooting covered in detail.
85 videos that will guide you through each step in learning how to hit long range targets.

27 posted on 07/05/2014 12:42:22 PM PDT by B4Ranch (Name your illness, do a Google & YouTube search with "hydrogen peroxide". Do it and be surprised.)
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To: blam
Jim prefers undeveloped land

I've got 50 acres of this. A couple more years and I'm off to enjoy a busy retirement redirection and rejuvenation...

28 posted on 07/05/2014 12:45:06 PM PDT by kanawa
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To: blam

Someone has no ideal that art cannot be eaten and it can’t be loaded into a weapon. Also growing food on it is not very good because it’s not very big. Cash when a loaf of bread is 5 grand will not work. Please I can help you with your list.
1.Food
2.Farm land were you can grow some food and hide from the Gov.
3.Weapons and a shit load of ammo
4.Junk silver pre 1965 U.S. 90% coins.
5.Hand tools, TP, meds, booze, and a good BIBLE and learn to pray


29 posted on 07/05/2014 12:47:39 PM PDT by lostboy61 (Lock and Load and stand your ground!)
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To: loungitude

You laugh at this list now, but wait until SHTF and you have no Rembrandts or Modiglianis to trade for food.


30 posted on 07/05/2014 12:52:14 PM PDT by wideawake
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To: Pontiac

I’m impressed with your clear, unemotional thinking.


31 posted on 07/05/2014 12:52:59 PM PDT by krunkygirl (force multiplier in effect...)
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To: kanawa

I recall seeing a lot of that during my forays into The Great White North decades ago. What’s a ballpark figure per acre for totally unimproved woodland up there? And does the government try to give you colonoscopy every time you displace a twig?


32 posted on 07/05/2014 12:57:28 PM PDT by Trod Upon (Every penny given to film and TV media companies goes right into enemy coffers. Starve them out!)
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To: Georgia Girl 2
I'm with you on being prepared. A lot of the collapse will be the unaffordability or unavailability of a lot of things. Have the things necessary for survival, keep the house and surroundings in shape, be able to protect and take care of yourself. I figure that unless it's an end-of-civilization situation, cash will be worth at least something and at least some food will be available. I keep a two month supply of enough foods and beverages for survival.

I have plenty of house cleaning supplies, first aid/basic medical/hygiene supplies, basic clothes, bedding/towels (in case limited water supply makes doing the wash tough), 100 watt light bulbs, flashlights and batteries. These are all things that could be in short supply if there's panic or disruptions to delivery systems.

I'm wondering if some old silver dollars might be a good money choice. They're easy to store and carry and they have a defined value.

33 posted on 07/05/2014 1:01:43 PM PDT by grania
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To: datura

lead


34 posted on 07/05/2014 1:06:47 PM PDT by CPT Clay (Follow me on Twitter @Clay N TX)
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To: nascarnation

LOL!!


35 posted on 07/05/2014 1:10:15 PM PDT by Maine Mariner
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To: blam

I have found this website to be a very useful source of information on the economy, gold, and silver.

http://goldismoney.info/forums/


36 posted on 07/05/2014 1:15:22 PM PDT by Ultima
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To: blam
Real assets like land, and precious metals. Avoid cash unless it is silver dollars or $20 gold pieces.
37 posted on 07/05/2014 1:15:22 PM PDT by Vinylly (?%)
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To: grania

“I’m wondering if some old silver dollars might be a good money choice’

We have a few but dimes, quarters and half dollars are better.


38 posted on 07/05/2014 1:16:13 PM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
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To: nascarnation
Have Hillary’s interviewer ask her (after she claimed to be broke) “why didn’t you get back into commodity trading?”

If not for yourself, how about for your selfless foundation?

39 posted on 07/05/2014 1:16:45 PM PDT by Pearls Before Swine
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To: blam

to paraphrase Will Rogers: Buy land. they ain’t making any more’


40 posted on 07/05/2014 1:19:24 PM PDT by maine-iac7 (Christian is as Christian does - by their fruits)
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To: blam
Simple.

The rest is just extra.

41 posted on 07/05/2014 1:20:12 PM PDT by KeyLargo
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To: Kartographer

Ping.


42 posted on 07/05/2014 1:29:17 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Maine Mariner

Don’t forget that after her brilliant investment run laws were passed to prevent her from ever again being a brilliant investor.


43 posted on 07/05/2014 1:31:00 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: loungitude

When SHTF, banks won’t open or will limit daily withdrawal amounts.

Before the fiat dollar becomes worthless, physical cash will buy you stuff. Those with debit cards and credit cards won’t be able to buy. The key is to use the cash to get what you/need quickly, including transportation, and keep the precious metals for after the dollar implodes.


44 posted on 07/05/2014 1:32:19 PM PDT by peyton randolph (Show me the man and I will find the crime. - Lavrenti Beria)
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To: kanawa; Diana in Wisconsin

Or you could do like Diana and “Develop a robust post-apocalyptic skill-set”.


45 posted on 07/05/2014 1:32:34 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Vinylly

Do you know when cash will be king?

The first time you go to the ATM, and it says...

“Sorry, Sucka! No can do!”


46 posted on 07/05/2014 1:33:38 PM PDT by djf (OK. Well, now, lemme try to make this clear: If you LIKE your lasagna, you can KEEP your lasagna!)
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To: lowbridge
Guns and ammo

All you need is one.

In a SHTF situation, guns and ammo will be lying all over the ground.

47 posted on 07/05/2014 1:35:20 PM PDT by Drew68
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To: blam

Gold. Silver. Brass and lead in the proper form factor. Something to throw the lead. End of list.


48 posted on 07/05/2014 1:40:58 PM PDT by piytar (The predator-class is furious that their prey are shooting back.)
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To: blam

his advise is crap.

in a scenario where the dollar collapses, you would immediately lose 40% as the cash becomes worthless and fine art is no longer valued

another 20% would be potentially lost as land rights also disappear, unless you can defend it in the long haul (good luck). unless we’re talking about 500+ wooded acres in the middle nowhere where you’ve got a hidey hole with supplies, it’s pretty pointless

i’m not sure what ‘alternative funds’ would be... but if he means stocks, those would also be worthless and foreign currencies would be problematic.

gold, silver, lead, dry goods, weapons and various means to manufacture various things would be of value. a place to store them discretely and in an easily defendable location would also be required

the ability to make off-grid energy would also be of value


49 posted on 07/05/2014 1:46:05 PM PDT by sten (fighting tyranny never goes out of style)
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To: Georgia Girl 2

you say: “Land? Yeh farmland where you can grow something.”

the MOST essential. And you DO NOT need acres and acres - BUT - you DO need y our own well water and wood stove - and, ideally, a wood lot nearby, if not on house property.

Independence is spelled: Shelter/water/heat/garden - that is not dependent on off site entity.

Here’s what one guy does on 1/5th !! of an acre. (He makes a big mistake in being city water/sewer/heat. but this is incredible)

So if you have a lawn - you can do this - NOW

https://www.youtube.com/watch?v=7IbODJiEM5A


50 posted on 07/05/2014 1:49:17 PM PDT by maine-iac7 (Christian is as Christian does - by their fruits)
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