Skip to comments.What To Own As The U.S. Dollar Dies
Posted on 07/05/2014 11:52:55 AM PDT by blam
July 04, 2014
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.)
(Excerpt) Read more at marketoracle.co.uk ...
The dollar is going to die, so you keep 30% in cash as a remedy?
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.
Thats all the doors there are. And theres precious little time left to make your choice
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.
So insist on physical possession of gold but buy art thru a fund. Hmmm....
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.
Tool steel, copper, brass, powder, gold, fuel, food, alcohol.
Sure, you can buy a quarter of an ounce of gold; it is difficult to own a quarter of a piece of fine art.
Guns and ammo
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.
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.
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/.
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.
I am sure George Soros and the other Rat hedge fund operators will know exactly when to sell the dollar short.
Yes. You wouldn't want unfine art, would you?
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.
Iron brass and lead
2.Ammo to feed them
All else will fall into shape
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.
I thought Hillary’s financial performance on those trades was nothing short of brilliant (sarc).
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?”
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.
Conflict is inevitable; Combat is an option. Train for the fight.
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I've got 50 acres of this. A couple more years and I'm off to enjoy a busy
retirement redirection and rejuvenation...
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.
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
You laugh at this list now, but wait until SHTF and you have no Rembrandts or Modiglianis to trade for food.
I’m impressed with your clear, unemotional thinking.
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?
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.
I have found this website to be a very useful source of information on the economy, gold, and silver.
“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.
If not for yourself, how about for your selfless foundation?
to paraphrase Will Rogers: Buy land. they ain’t making any more’
The rest is just extra.
Don’t forget that after her brilliant investment run laws were passed to prevent her from ever again being a brilliant investor.
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.
Or you could do like Diana and “Develop a robust post-apocalyptic skill-set”.
Do you know when cash will be king?
The first time you go to the ATM, and it says...
“Sorry, Sucka! No can do!”
All you need is one.
In a SHTF situation, guns and ammo will be lying all over the ground.
Gold. Silver. Brass and lead in the proper form factor. Something to throw the lead. End of list.
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
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