Wealth Preservation, Investing, and Prepping in 2010
Author: Mac Slavo article link
January 26th, 2010
The trend going forward during this economic depression is getting back to basics. We often discuss ‘prepping’ as a way to protect your family in the event of an unforeseen catastrophe (natural or man-made). Recently, we’ve seen more financial analysts and advisers recommend shifting from traditional investments like stocks, bonds, CD’s and money market accounts, to tangible assets that will gain value regardless of what stock and bond markets do. ...
For those interested in investing some of their wealth into real, tangible assets, consider the following as food for thought:
* Precious metals ...
* Food
As the US Dollar loses value and other countries become hesitant about fund our trillion dollar debts, the cost of food will continue to rise. Combine the dollar’s monetary issues with the fact the many farmers around the world are unable to gain access to loans to continue or expand operations, and you have the potential for prices increases no just because of dollar debasement, but supply problems. The other threat for food is that we may very well experience a perfect storm event, such as that experienced in the dust bowl of the 1930’s, meaning that heavy rains, or heat or cold may affect agricultural output, further straining supplies and pushing prices higher. Foods like rice, legumes, pastas, wheat, oats, and canned goods could be purchased today and stored, in some cases, for up to five years or longer. Consider the price increases that can happen in these food stuffs over the next five years and this investment may see significant gains. And again, you eliminate counter-party risk because you are holding the tangible assets yourself. ...
* Sustainable Living
Well known trend forecaster Gerald Celente has suggested that one of the mega-trends of this decade will be living on less and becoming more self sustaining. Individuality will return to America, and a push to distance oneself from the “grid” will take off for a variety of reasons. Rising food and energy costs are likely to be two of the major catalysts for this trend. How can you invest for yourself? First, consider investing your time and money into skills development like gardening, farming, sewing, woodworking, or hunting, as these skills can certainly be an investment that will pay off in the future. While it may not be feasible for most to become farmers in terms of commercial enterprise, it can be accomplished on a personal level by those who have a bit of desire and choose to expand their skills base. Urban gardens are already popping up all over America as the micro-farming trend continues to gain acceptance. Even in the suburbs, on a fifth of an acre of land, those with the ability to think outside the office cube can grow enough food to support their entire family for a year.
For those concerned with rising energy costs, your options are basically limited to investing in energy stocks and ETFs, or, investing in yourself and create your own supply of energy. Learning how to develop and implement a power grid in the comfort of your own home will not only give you the skills to earn a living in the future, but to provide nearly unlimited energy for your household through use of solar, wind and hydro power. Investments into alternative energies for your home may seem costly, but not if you consider the rising cost of your electric and gas bills over the next couple of decades. Sustainable living investments are not one-off investments, say, like storing a bucket of beans, but rather, pay dividends forever.
* Clothing/Footwear
Though not often considered as investments, extra clothing, especially things like socks, underwear, house shirts, shoes, sweat shirts and sweat pants, will likely move up in price as well. While adults may be able to stretch their close for several years without replenishing their closets, children are a whole different story. If you’ve got kids, this is one investment that can really pay off. Purchasing graduating sizes of clothing for your kids with a time horizon of 3 - 5 years can really save you money down the road. It is true that in America today, these items are readily available and imagining a scenario where these items will not be on store shelves is hard to do. But consider the East Block circa 1985, and you’ll have a different perspective. Because of isolationist policies, closed currency and price controls, these items were very difficult to come by. If the US experiences a currency crisis, it will have an immediate and significant impact on the USA’s ability to acquire goods from manufacturers around the world, as the price for goods will be difficult to determine because of the potential for massive currency fluctuations. If not for yourself, consider stocking some reserve clothing for your kids.
* Hard Assets in General ...
It is important to be prudent with where one might invest their money, as it is impossible to say for certain that an inflationary environment is in our future, and which goods will be affected by increased prices. But all signs point to an eventual devaluation, officially or unofficially, of the US dollar. While the aforementioned “investments” are not traditionally accepted and your financial adviser might think you’ve gone off the deep end, they are worth considering and provide you with another option for protecting your wealth.
SHTF Plan home page
No comments:
Post a Comment