First post, so why not a few words about metals. It seems like a good place to start, with metal prices jumping around so much theses days. With the right metals in my “portfolio”, I feel I am prepared for any eventuality, as we used to say. Metals such as gold and silver have had and held value, in varying degrees, for many thousands of years. The chances are that they will continue to hold value, no matter what condition the world at large may be in. My thoughts on metals include:
1) Putting less money into my IRA and more into actual, physical silver and gold. That would be coins and bars, tangible items that can be stored locally. Or even junk silver, small denominations that can be used as coins at face value, or for their silver value as barter. I prefer to take possession of the metal, but there are precious metals IRA’s, where you can purchase it and have it stored for you, at a cost of course.
2) Rolls of coins from my local bank. Do you put a few dollars away here and there? Think about the devaluation of currency, and how many countries have had zeros dropped from the back of their bills. Now think about coins. It may be relatively easy for a government to remove and replace all it’s paper money. But how feasible is it for the same government to remove and re-mint all it’s coinage? Not very. Get rolls of nickles, dimes, quarters, and half dollars, 10 or 20 dollars every couple of weeks, or whatever you can afford. If paper money is recalled, chances are that coins will not be, and that their value will remain unchanged.
3) Brass and lead. Not the commodities, but the type that is manufactured to be used in bullet-throwers. Never considered paying for goods in 12 gauge shot shells or .22 rounds? Think again. Read William Forstchen’s recent works for an interesting fictional account of a world where it happened.
4) Blued steel. Um, yes, things to launch the bullets from. The safe should contain a variety of firearms if at all possible, for various applications- birds, deer, rabbits, and so on. If you can afford it, think redundancy (2 Remington 870’s instead of one)- you’ve got backup, spare parts, or a valuable tool that can be traded.
There you have it, a quick rundown of my metal investment strategy. Some may think it sounds kind of crazy, but I assure you I’m not paranoid, just prepared.