URBAN SURVIVAL: Buying Gold is Only for Mr-T and Warren Buffett

This is the only gold that you should be putting your hands on

Not a week goes by without someone sending me an email asking my opinion on buying Gold as an investment for the “impending 3rd world like economic collapse in the US” or various other financial scenarios.

I still can’t figure out why I have somehow become this bastion of financial advice on investing that all my friends go to when they are deciding on making some off-the-wall financial move.

I think it is a combination of the fact I have always had a job (a rare trait amongst my buddies), read allot of books (and even rarer trait amongst my buds) and in their minds my being an international contractor means I must be rolling in mountains of coin that I invest in exotic and shady ventures like the international Gorilla Hand Ashtray trade (in reality I blow it all on Booze, Easy Women and Bacon Cheeseburgers).

Generally the tinfoil-hat talk about the U.S. becoming a 3rd world wasteland like Somalia makes me immediately delete said message (anyone who thinks the U.S. could ever turn into a 3rd world like hell-hole has obviously never been to a 3rd world hell-hole) – but one of my buddies sent me the rare rational question about gold as an investment.

The Following is my response, unedited:

Dear Crazy Friend:

Dude, I have been seeing this “Buy Gold” thing from as far back as when I was a kid reading about the need to buy gold when the Russians invade the U.S.A in my favorite 80′s rag The American Survival Guide.

It seems like every survival magazine (and even some mainstream financial publications), so-called survival bloggers or gurus start spouting off about buying Gold like it is a new idea or something whenever some sort of unlikely collapse is supposedly on the horizon (yet never happens) from as far back as the Cold War.

Historically speaking Gold prices have been dead flat during good economic times (like when everyone has a job) and spikes when the economy in the 1st world hits the crapper as a whole (when you get laid off of your job).

And therein lays the fundamental problem with buying Gold as an investment.

To make money from the rise (or expected rise) in gold prices you more or less have to wait until the economy is falling off a cliff (and you are suffering financially) to make gold a profitable investment.

So when gold becomes a good investment – you won’t have the money to buy any anyway.

There are only 3 groups of people who make allot of money from gold:

1.) People who are already millionaires/billionaires – because they are the only people in the world who have enough cold hard cash stuffed under their beds during an economic downturn to buy the large quantities of precious metals to actually make a substantial return that one can use for financial self reliance (IE: pay the rent over a prolonged period).

2.) People who are selling you fear, IE: survival gurus, financial advisers, commercial media enterprises and people who sell gold. Basically people who want to scare you under the guise of helping you survive through hard times when all they are really doing is selling you shit and laughing all the way to their vacation home in the Cayman Islands.

3.) Pirates

Also ask yourself this:

How many working-class folks like us do you know who are living off of the capital gains from their gold and precious metals investment portfolio?

Unless you have some buddy’s at the country club who have last names like Rockefeller or Gates that I don’t know about, I am guessing exactly zero.

So dude, if you really want to square away yourself financially for the impending zombie alien plague then drop down to the basic cable package, quit smoking, stop buying 30 DVD’s every month, pay down that 28.9% interest credit card and dump your girlfriend (that advice has nothing to do with money, I just hate fat people and your self-righteous smug liberal girlfriend)

Your Buddy,

~James “Mother-Fucking” G.

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~James G
Founder – Editor in Chief

James G is a Veteran Civilian Contractor who has worked in the Middle East and Southeast Asia for way too long; he has traveled to over 50 countries chasing fortune and glory. He spends his off time in Indonesia and Virginia getting drunk, shooting guns, writing poorly written articles and selling off his Krugerrands for beer money. James G. on FACEBOOK

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55 thoughts on “URBAN SURVIVAL: Buying Gold is Only for Mr-T and Warren Buffett”

  1. Holy shit, that title alone made me pee my pants! Nice work James, and some pretty good financial advice in there as well.

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  2. I’d say you’re right, I don’t think it is something that makes any sense as an investment. It is a good indicator of how people feel though.

    I’m guessing there will be a gold bubble pop in the not too distant future (too many commercials on TV means that lots of people are buying and when the masses jump on, the train already left the station IMO), but it wouldn’t surprise me to see it work its way back up again.

    I tell folks that my opinion is if they feel they MUST “invest” in gold, they should go for a gold mining company’s stock. But make sure the company has good business principles and is profitable, ergo – do your due diligence just like any other investment.

    Besides, if it goes Mad Max out there, I can trade fresh venison for all the gold I want, you can’t digest bullion very easily ;)

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  3. Top notch article, James – we should have more of these financial-orientated articles!

    ~Alex S

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  4. Besides, if it goes Mad Max out there, I can trade fresh venison for all the gold I want, you can’t digest bullion very easily   

    totally! i’m toast in mad max land, once computer nerds are no longer needed. In a real collapse of civilization gold is only handy for its chemical properties. I think only Diamonds are a worse investment, since their value is artificial, they can be man-made, and they vaporize in a hot fire.

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  5. LOL well done sir. I can always count on your articles to give me a laugh.

    One question on my mind still is… if I shouldn’t be buying gold, should I be selling all my gold to one of those guys in the infomercials or malls? :P

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  6. @ V-Man – Thanks, it was between that title and “Buying Gold as an Investment is Stupid as Fuck”

    @ Dr Dave – You are totally right, just the fact that people are looking at silly investments like buying gold bars is certainly an indicator of how people feel about the current and future Global and Domestic financial outlook

    @ Alex S – Thanks man, I was thinking as I was posting this I should have a regular category on “Financial Survival”

    @ Mike-ENDOtactical – My advice would be to sell your gold and pay off any consumer credit debt you have

    ~James G

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  7. Its not so much as an “investment” to make money or get a return off of, its more of an insurance policy for when our dollar goes down the shitter and isn’t worth ANYTHING anymore (which I believe is inevitable if things keep going the way they are).

    After WWI in Germany, it was cheaper to burn their paper currency than it was to buy wood with the said currency. Why? Inflation. After the war, the Germans were basically totally broke and thought they could solve their problems by just essentially printing more money. (which is essentially what we do when we authorize the Federal Reserve to manipulate interest rates and print more money. It creates a “bubble” or growth that appears to be sound money, but it is basically just bullshit. And you can bet that the currency bubble will burst just like the housing bubble burst causing a big part of this economic fuckup that we’ve got going on right now.)

    From what I understand, gold is a very stable commodity that always retains its value. In other words, if you buy $300 worth of gold and then the value of the dollar hyper-inflates and is only worth 1/4 of what it was before, you’de very likely be able to get close to $1200 (or its equivalent in foreign currency) with that gold. Its not a way to make a “profit” per se, more of a way to insure that whatever happens with our currency, (which isnt backed by ANYTHING other than the world’s confidence in our economy BTW….) you’ll have something to fall back on to buy foreign currency if needed so you can leave the country….etc.

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  8. James, once again, great article. Now if people had bought gold when it was around 360/oz, then you would be rolling in the dough right now. Gold is hovering around its record highs. Which means, if you aint bought it, then you pretty much missed the boat. The old adage of BUY LOW and SELL HIGH comes into play here. Most people will buy into the hype and buy now which is idiotic. If you do that, you’re just another dumb pudknocker who will fall for any good sales pitch.

    I did have a client once, back in the late 80′s who made his whole basement out of gold bricks. He painted them red and laid them in. If he is still alive, he’s rollin in dough, but if he died and his family sold the house, that stuff is just sitting there and nobody will know.

    Having said that, I think I will cash in my grandma’s gold teeth. haha

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  9. Hilarious! You really should do a regular post on this. Aside from the fact that the U.S. going mad max is way fictional, a lot of these folks don’t seem to realize that certain skills will triumph over hoards of gold every time. i.e. my .45 trumps your bullion. If the U.S. ever went primitive, the ability to hunt and protect your crops would be way more valuable than gold.

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  10. The simple fact that there are late night infomercials selling the stuff should tell you something about the wisdom of that kind of investment…

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  11. @ 9C1 –

    What you are not taking into account is fees associated with cashing in gold – go to any gold store and sell a gold coin, you will not get the days price, you will get less – so you have lost money right off the bat.

    Also if you buy gold you are taking cash that could be used for paying down debt that is accumulating substantial interest – so basically you are loosing money by buying gold from day one, in some cases (depending on your interest rates) up to 19% to several thousand % (considering that interest on interest on interest can make you interest rate actually be a couple of thousand times more than what you think it is).

    And even if you are debt-free (congratulations on that one) you could be earning interest in a simple savings account on your cash reserve or investing in things that will yield higher capital gains than a bar of gold.

    Inflation or US currency devaluation will not eat up a couple hundred grand (or just 2 grand) collecting interest, it may nibble on it a little – but when you need cash you won’t be crying about a 2% loss.

    And a few % loss is worth having cash on-hand if you loose your job, get injured, the stove breaks or your pop gets sick

    As for the other stuff about the U.S. dollar crashing to the point it could be used as tinder (or even loosing more value than what you would loose by investing in precious metals) well… It wont happen.

    The explanation for that would be an epic length post that I don’t feel like writing but it has allot to do with the U.S. having a unique tax base that no other country has, private industry R&D, Rule of Law, consumer spending habits, historical global financial data and several other factors that make the idea of US currency falling to the point of African or Post-WW2 rates is just fantasy.

    And quite frankly if you are basing your long term financial goals and planning on US Currency becoming near worthless to the point that gold will be used as currency in the US someday then you will never get a leg up financially thinking that way my friend

    And no-one reading this article has hundreds of thousands of dollars to buy enough gold to use as currency for years if US currency becomes so worthless that we will be trading gold coins for food in the streets of America – so it is a moot point from any angle

    @ Zaruski –

    Bingo!

    ~James G

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  12. And also, you usually don’t get the physical gold. If you buy 25 lbs of gold it sits in a bank until you choose to sell it. (It’s like stock. You get a certificate for it.) If the world goes mad max you don’t physically have anything. It is an investment against the decline of the dollar. You could also buy euros or pounds to do that…

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  13. For real – buying foreign currency or precious metals on paper as a hedge against the US Dollar loosing value will not work unless you have at least a half a million dollars in CASH to do it with.

    When you throw in currency conversion fluctuations, foreign currency account fees, capital gains taxes and accounting fees you will loose money in the short and long term unless you have a pallet sized chunk of cash to invest or exchange.

    Trust me – as a contractor working overseas this is something I have looked into and studied extensively. Converting my USD into Euros or any other currency was not worth it even back when I was making damn near 400K a year – so it sure as shit is not a viable investment for someone making 80K a year

    ~James G

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  14. James, I agree with you for the most part. I do however have a few gold coins, a Rolex and a few “tradin’ guns in the safe. Every once in a while I find I need a bit of cash (or more cash than I have). I have these items because I would have spent actual currancy on beer or something completely irresponcible. If it is something I have to work to turn into cash, I tend to keep it around until I really need it, or that time I dated a stripper… let’s not go there.

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  15. I never claimed converting to foreign currency was worth it, just that it was the same idea. Plus, like converting to foreign currency, you don’t actually have the gold in your possession for when shit does go down.

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  16. First time I realize that beeing broke all the time can also be a good thing:
    I never have to worry about making investments.
    But I really like the idea to have some “tradin guns” in the safe…
    just for the case…
    At least it´s a good excuse to buy more guns!

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    1. Any excuse to buy more guns sounds good to me

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  17. Man, I miss American Survival Guide! That was a good read for a while despite some of the silliness. Other than that-I don’t have any offerings regarding precious metal investing.

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  18. @James

    I never said I would do it personally, it just seemed that you were missing the point of buying gold. The theory of it isnt to make money, but as an insurance policy.

    I personally am debt free so using that money to pay down debt isnt very practical for me.

    What Im saying is that IN THE EVENT of the total crash of the dollar (and along with it, multiple foreign currencies probably as well), gold would be your best bet at being able to retain value.

    (The USD collapsing really isnt that far fetched. The dollar is really not all that high and mighty anymore and there are plenty of other players now. Some economists suggest that if OPEC were to relace its standard currency with the Euro or if China were to recall the national debt owed to them by us in currency other than USD, the USD could tank in only a few monthes.)

    In a situation in which the USD is still a feasible currency and still functions reasonably well, of course it would cost more to turn money into gold in an investment sense. But if the opposite were to occur, which really is NOT as impossible as you think it is, banks would obviously fail and all that money you have sitting in the bank earning interest becomes either impossible to get to, or doesnt have the purhasing power that it once had.

    Its been shown many times that gold’s purchasing power is remarkably stable. Gold prices do not chase after the value of commodities, but rather commodity prices return to the index level of gold, over and over again. Theres a reason why many free countries base the value of their currency on it and theres also a reason why the Founding Fathers set up a gold standard of sorts and used gold and silver currency to protect the dollar and it worked for nearly 200 years untill Nixon finally did away with it.

    Is it a little far fetched to think that the US dollar would collapse and be worth nothing? Maybe a little, but dont think that it is impossible. And dont think the FIC is going to come to your rescue because it’ll be too overhwelmed to react and even if you DO get your fedarlly insured money, what if its only worth 1/100th of what it used to be?

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    1. J.G. – good fucking article. Why do people always look at the 300 meter targets of gold, survival shelters and five years of MRE’s but don’t consider the 10 meter targets, i.e.

      1. Skills-. Take an Amercan Red Cross first aid course. Have basic combative/self defense skills. Be able to start a fire, build a poncho (or tarp) shelter and shoot a pistol and rifle proficiently.

      Identify and develop basic urban and field survival skills. Not very expensive and the mind set you develop is at least as important as the skills.

      2. Fitness-be able to walk 5 miles with 50 pounds on your back, throw your body weight over a five foot fence and sleep on dirt or concrete and still be able to function the next day without being a complete pussy. Be able to do this shit for at least a week.

      3. Practical preparedness. Have a job skill, training or degree that makes you employable. Better yet have more than one. Have a good credit rating (as a matter of fucking fact, fix your credit rating and pay down your debts before even considering buying 10 ounces of gold from the “fuck-you-up-the-butt-late night gold selling infomercial). Have enough money in your savings account to keep your fat ass in cheetos and beer for two months and cash on hand for at least one week. Have a car that is mechanically reliable. A post-katrina New Orleans is a good example of what to realistically prepare for.

      4. Crisis preparedness-Have a minimum of one good pistol and one decent rifle – 2000 rounds ammunition for each and holsters magazines cleaning equipment. Have a well stocked snivel med kit (aspirin and pepto) and a well stocked trauma kit. Have containers that allow you to store at least two gallons of water. Own a decent backpack, sleeping bag shelter etc.

      Bottom Line-

      What is the most likely action? Getting injured on the job or fired, Getting kicked out of your own house by your fat-assed girlfriend. Having a car breakdown in Bum-fuck Iowa (no offense to Iowa). Getting buglarized, assaulted or being a victim of some other crime.

      This is the shit that most people don’t really prepare for.

      What is the most catastrophic action:

      Snowstorm, hurricane, wild fire, flood, ass cancer, some other form of cancer not involving your ass. Death or serious injury of a family member. Sudden (further) economic nose dive that exceeds the scale of the great depression, limited homeland terrorist attack on the scale of 9/11.

      As far as fighting the fifth mongolian horde or surviving in a post apocalypse world, well, you can’t ever COMPLETELY prepare for that shit, the shit that happens on a bibilcal scale – you can only react to it.

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  19. 9C1

    Are you suggesting investing in gold backed securities or owning/hoarding physical gold? Either way, let’s assume “financial TEOWAWKI,” i.e. collapse of the US dollar.

    If you are suggesting owning and purchasing gold backed securities, the problems associated with the collapse of the dollar (bank runs, hyperinflation, etc) will affect the broker holding your securities just as they will affect the banks. Your investment will be worth a crapload of (now worthless) US dollars, but (as stated) those dollars will be worthless. The friendly guy at E-Trade is not going to give you Euros (or Yen or Yuan) when you go to sell your investments, and I’m not aware of any ATMs that dispense foreign currency.

    If you are suggesting hoarding physical gold, you have to ask yourself: What happens next? You’ve got some (perhaps not small) amount of valuable metal. Do you use it to buy food? What do you think the exchange rate of gold to food will be? How many cans of beans do you want for your 1 ounce gold coin? Or, perhaps you somehow use your gold to fly to a country with a stable currency. Then what? Unless you’ve got enough gold (or otherwise transferable liquid wealth custodied at overseas financial institutions) to basically support yourself indefinitely, no country will be very interested in your coming to live there. If you are like most people, your wealth is tied up in real estate and your retirement account; both valued in dollars and neither of which would travel well if the dollar collapsed.

    I don’t think the US dollar will collapse entirely, but if it did for some reason, I don’t know that there’s anything a person of average wealth in this country can do to insulate themselves from the fallout other than to be functionally self-sufficient.

    Interestingly enough, the same things can be said for the coming Zombocalypse…

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  20. Functionally self sufficient.

    Damn, you just said in three words what took me 500 words. Ain’t I quite the fucking retard…

    Good point however as you can’t shoot brigands and assholes with a Krugerand.

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  21. No I am suggesting actually owning gold. Not gold bonds, securities, stock ownership….etc. If the country doesnt fall apart as a result of the TEOTWANKI USD collapse, then you have a commodity which can very easily be used as a way to purchase goods by itself, or as a means to acquire whatever the new standard currency will be.

    If the country completely folds, then you will always find people who are willing to do buisness with you in gold. Im sure you could charter a boat or possibly barter for some plane tickets to get out of the country if you needed to. Cash is also a good thing to have because some people will still cling to it for awhile because they dont quite understand what is happening to their currency. Once out of the country, it isnt unreasonably difficult to become a naturalized citizen of various European countries and get a job which might not be as nice as the one you had before, but still may make it possible to earn a living.

    Im not saying get rid of all your cash and buy gold because thats rediculous and for the reasons many of you said above impractical, Im just saying that gold is an extremely stable commodity and the only true “world currency”. It is valued almost equally around the world as a precious metal and having a couple ounces tucked away somewhere safe where you can get to it is definitely a good idea. Having other things which may have a high value in a disaster situation to barter with is also a great idea. You can bet that the percieved value of non-perishable food will SKYROCKET once the country has gone a week or more without a stable food supply. Having a few extra cases of MRE’s, bottled water and medical supplies would be a good idea for bartering for a way out of the country or for other things you may need as well.

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  22. Is it just me or does anyone else think that ammo might be worth more than gold pound for pound if the lights ever go out for an extended period of time? In this case, “He who has the most ammo wins.”

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  23. Fat Botches…..another reason to hate them. LOL

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  24. The problem with hoarding physical gold is twofold.

    First the storage. Where do you keep it? How do you keep it from being pilfered? How do you keep the wife from using some to buy something stupid you would never give her money for? What do you do when your house burns down? And many more.

    Second, if the economy does collapse so bad you need to use it gold is heavy. Depending on the size of your stockpile that adds a lot of weight to your bugout bag when you go to the airport to leave the country. And if anyone gets wind that you have the smallest amount on you then you will more worried about staying alive then about leaving the country.

    There are better items to keep to barter with. Food, ammo, maybe even guns. I would keep some cartons of cigarettes around to barter with too. Post collapse America will be a lot like prison, except hopefuly without the butt-rape (except for James G. and his mercenary army who will be raping everyone).

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  25. I agree there are better things to bargain with. Also, unless youre Bill Gates or something, I doubt you’de have enough gold to the point where it would be exceedingly heavy…..

    The current going rate for gold is almost $1300 an ounce. In order to have just ONE pound of gold, you’de need to buy almost $21k worth. It also doesnt take up much space either. You could easily stash it somewhere no one would ever find it.

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    1. Hungry people are not going to trade you their food for gold, and if you could find someone willing to trade you will not get much value for your gold either. Gold is a stupid investment if you are thinking Madmax scenarios. Food, water, medicine, fuel, etc. Would be the barter items. Stock piling ammo is also a very good idea in that situation but I wouldn’t use it for trade. I would definately keep my own hands on that. I have some Amish that have moved in down the road maybe they would be willing to trade for protection.

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  26. Are we really sure people will “do business with us with gold”? I call bullshit. Gold won’t power an engine, feed you, or keep you warm. Sure, there might be people who are willing to part with goods or services for a soft metal with *perceived* value, but after they get sick of lugging that crap around and wise up to the uselessness of gold in such a Mad Max world, they’ll stop. I bet a barter system will be the first system that arises, where canned goods, a gallon of gas, and “tradin’ guns” would serve you the best.

    According to Dave Ramsey, gold is a horrible investment, for many of the reasons mentioned in the above posts. Also, Dave has mentioned on his radio show that the gold companies that everyone else in talk radio advertises use some very high pressure advert tactics like sending large checks to the host (or radio company) even before they agree to advertise. Also, like whole life insurance, the people endorsing these products are usually indoctrinated educated by the same companies stand to make money off of their ignorant, but impassioned pitches.

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  27. I think we are losing track of the point here… I agree with James, TEOWAKI in the States isn’t going to happen (see his articles about BOBs). Taking that into account, physically owning some gold instead of dollars, when you are debt free, does not seem a stupid idea. When observing history the conclusion may be drawn that gold is a stable investment. Yes, there are better investments which offer bigger returns but few less risky than gold. Whereas I would be a cautious about the future buying power of $10.000 or even €10.000 with the big fluctuations seen in the last year compared to the GBP.

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  28. You just made around 5 million Glenn Beck fans die a little inside.

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  29. Funny that for all the gold bashing and gold promoting, no one said a word about something cheaper, easier, and a whole lot smarter to buy/hold:

    silver.

    Why? Two simple reasons: you can buy junk silver for cheap if you want to actually have something physical, and, if you want to buy paper silver, or silver mining stocks, it’s an industrial metal which is heavily used but it’s finite in supply.

    Also, and correct me if I’m wrong here, but the whole premise of buying gold/silver/copper/Taylor Swift’s cooch is to further round out your survival tool box. i.e.: you start buying this shit AFTER you:

    - Paid off all of your debts
    - Have done all the stuff on Mike’s list.

    NOT before.

    Here’s a little eye opening test for you: if you have something that’s pure gold (krugerands, fancy anal beads, your mom’s wedding ring, wtfever), weigh it, do the math and figure out how much it’s worth, then go to a pawn shop, jewelry store, and try to barter with it.

    If it’s worth shit NOW, what makes you think you’ll get a better deal in a Mad Max scenario?

    “Functionally self sufficient” should be the phrase of the month.

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  30. what about silver ? much cheaper to buy…my english is not good enough to explain my point…visit this page for the complete article and credits http://www.self-reliance-exchange.com/?p=9489 and let me copy-paste something here : Silver and Gold

    While some of us currently do purchase silver and gold as an investment strategy, however, it is of the utmost importance to realize that this is not what I am advocating at all: the idea here is not to “buy low” and “sell high” to make more paper dollars, but to store the value permanently over time.

    And, while gold is obviously the most alluring of the precious metals for most of us, I choose to buy mainly silver, for the simple reason that I can afford such purchases as a normal budgetary expenditure. As of this writing, gold is at $1,281.40 per ounce, while silver is at $20.94 per ounce. Instead of dropping $250.00 into a savings account, I’ll buy a dozen silver “rounds” (1 troy ounce) instead, and every now and then I’ll mix that up with a 10-ounce ingot purchase.

    And, with an eye towards the realization that I might actually have to use my precious metals as an actual medium of exchange one day, the silver will be much more useful than the gold for smaller, everyday-type purchases.

    I do buy some gold, however, to keep things diverse. As my budget rarely affords me the opportunity to buy an ounce at a time, I usually purchase the quarter-ounce or tenth-ounce sizes, as a means for engaging in larger potential transactions.

    One major benefit of such precious metal purchases, of course, is that I never dip into them, as I often do with saved cash. To do that, I’d have to sell some first. The pile just grows bigger over time.

    OK, so now you’re beginning to accumulate some real money. What do you do with it? Well, given the nature of our current federally-run banking system and all of the uncertainties that implies, you sure as heck don’t want to store it in a safety-deposit box. No self-reliant individual would ever trust such an institution, and you shouldn’t either.

    You will have to develop a storing method of your own that you are comfortable with. A safe bolted down into a concrete floor; a clever stash-spot in your house; or actual burial. (This last method, however, in our age of vidcams and long-distance surveilling techniques, has some obvious drawbacks you will need to take into account.)

    Nor is it my recommendation that you employ purchasing methods such as commodity houses or credit/debit transactions. All such methods leave a paper trail, the first thing to avoid. Find a coin shop in your area and pay for your proceeds with cash. True, you might lose a little bit of value with such transactions, but the biggest pile of silver and gold in the world does you no good if others know you have it.

    Above all, you do not want to advertise what you are doing! (Yes, I know that this is exactly what I am doing here; but, trust me, that factor has already been taken well into consideration, for my silver and gold is not stored anywhere on my property.) The less others know of your business the better off you will be.

    So: if you are serious about developing a truly self-reliant method of savings, there you have it.

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  31. Good Article James,

    We live pretty debt free, use the credit card only when absolutely necessary. But at one time I wanted some gold when it seemed the shit was going to hit the fan, lucky for us our broker is a straight shooter told us why its a poor choice. A pretty good indicator that its not a good idea is all the bullshit commercials which really target the old who would still be convinced that gold is the way to go, because they lived in the times it was a good investment.

    Now I am sure there are plenty of us that wish we bought all the AR-15′s, AK-47′s, SKS’s etc and ammo that we could have back before they went through the roof a guy could have done really well.

    Like you stated it is wise to not be paying large interest payments on credit cards, high payments on cars etc. My wife and I would both like to get a new car, truck, bigger flat screen, but what we really enjoy is having cash in our pocket and a nice savings plan.

    DVM delivers

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  32. I agree with some of the previous comments that if you are really preparing for TEOTWAWKI, guns and a huge stockpile of ammo, even in calibers you don’t have, are better barter chips than gold. Only and idiot would be in a position where cash is useless, and only useable/consumable goods are of value in keeping your ass alive, and say “hmm…sure, fella, I’ll give you a meal, some gas, a gun and some ammo for that thar chunk o’gold. When the United States Guberment reforms and the treasury kicks off again, I’ll be richer than Bill Gates.”

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  33. That maniac Glenn Beck needs to read this!

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  34. Let me clarify, I don’t keep gold, trading guns, ect for TEOTWAWKI, I keep them for MOLOJ (My Occasional Llack of Judgement). When SKS’s were cheap I picked up a couple, same with gold. Now if I want a new toy, I can sell one to help pay for it. Kinda like Tijuana “bail/bribe” money.

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  35. I would tell them if the zombie/vampire/ 3rd world apocalypse comes, the one single precious thing in the world will be clean and potable water. Think Quantum of Solace without that lame douchey villain. And anyone that has spent any significant time in the 3rd world or even camping, hiking and survival surely knows what people will give for drinkable water. Everything else can be manufactured, found, scrounged, hunted and traded for. If someone wants a good investment for “3rd world America” find a nice piece of land that has an artesian aquifer or any type of clean ground water, stick a well in it, build a cabin next to it and secure the holy hell out of the well and your land.

    Then after you do that everyone will want to be your friend.

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  36. Or they will assault your compound and take it from you. I would keep that your little secret.

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  37. That had to be the dumbest take on precious metals I’ve ever read. You’ve shown your lack of financial mental health in just a few paragraphs.

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  38. Point out what parts were “dumb” along with your better opinion and I will address them

    ~James G

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  39. I just died a little bit inside !
    In all seriousness we really need to stop bashing TEOTWAWKI Zombie Apocalypse Mad Max scenarios . Surely buying more guns , ammo and the like cannot hurt when the inevitable collapse comes…… Look at how great life is in Iraq and Afghanistan !

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  40. Riiiight, I suggest you read a few more Articles of James G.

    If you want to prepare for the TEOWAKI scenario picking learning how to grow your own vegetables and how to drill a well is far less sexy than buying guns but not less wise: http://www.rapidtrends.com/surving-argentinas-economic-collapse-part-1-3/

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  41. TEOWAKI will never happen so it is a moot argument any way you want to look at it

    ~James G

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  42. I humour at the fact that people buy guns and ammo in the name of TEOWAKI preparedness yet have not taken basic, every day life precautions against simple scenarios like a stolen laptop.

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  43. Love the www, just found it, but not a very good article regarding investments, in fact it is down right aweful. I have purchased gold (as well as other investments, such as rental properties and some stock, such as Apple and Google) and have made a killing. I started with gold at 400, silver at 8.00. Always physical, never ETF’s.

    There is a reason that gold is a good investment (silver is probably better, there is a historical high 63:1 price ratio right now, and silver prices are held down – it should be much higher, there is less of it, and it is used in industrial applications). That reason is because of the running of the printing presses. Right now there is deflation, but eventually, or debt will (or already is) not be sustainable. That means two things: Default or Inflate your way out of it. Guess which one they plan on doing?

    Now, of course, if you don’t have any preps, it doesn’t make a ton of sense to go all in on gold or silver (commodities are where its at – wheat, cotton, farm land, etc). But, it is prudent to buy preps, save cash, pay bills AND invest if you have the means. There are times when I don’t need a 35th gun, so I will invest that and then make that investment worth two, or three guns.

    Read or listen to Jim Rogers, zerohedge, market ticker, or naked capitalism to get a little schooling. Read Hayek, or Ron Paul on economics, esp Hayek’s “Road to Serfdom”. Take some econ classes at your local community college. For the love of all things holy, don’t give your readers any more investment advice.

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    1. I am no economist, but “there is a historical high 63:1 price ratio right now” sounds like the exact reason NOT to buy. Isn’t the goal to “buy low, sell high,” not the other way around? Riding bubbles can be fun, as long as you are clairvoyant and know when to get out right before they burst…

      But, maybe you are right and precious metals ARE different than tulips, South Sea Company stock, tech stocks, US real estate prices (twice!), etc., and will rise in value for perpetuity. Maybe THIS time things really ARE different, and the “old rules” no longer apply.

      I think I’ll buy ammo and similar hard goods, thanks.

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  44. I meant Gold to Silver pricing is at a all time high ratio. Silver is way undervalued. That is what I meant.

    Folks are missing the woods for the trees. You always want to hedge your bets. You have to plan short term and long term. If I had narrowed down my economic plans to just guns, I would have bought another AR instead of Apple at 18.00 and Gold/Silver 400.00/8.00, or put money into a Roth IRA. You get my drift. I am taking care of my short term and long term, no matter WHAT happens, end of the world or not.

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    1. “I meant Gold to Silver pricing is at a all time high ratio. Silver is way undervalued.”

      Or, that gold is way overvalued. I believe that it is, and that we’re experiencing a gold bubble caused in part by global anxiety over US financial policy and the impending demise of the US dollar as the “global currency.”

      Just because we’re in a bubble doesn’t mean that there isn’t money to be made. But just because there’s money to be made doesn’t mean it’s (1) a sound investment plan, or (2) a sound disaster/TEOTWAWKI preparedness strategy.

      What is the “value” of gold? The answer (as ever) is “What somebody is willing to pay for it.” I’d suggest checking out “greater fool theory” on Wikipedia (it’s only 6 sentences).

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  45. First off – don’t come on DVM and tell me what to do, that makes you look like an ass

    Second – Right now I am way too busy even to answer your arrogant post so I will get to it later or just delete your comment

    ~James G

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  46. Not telling you really what to do, but it is a disservice to your readers to not doing homework. No disrespect was intended towards you at all. In fact, I think this is a damn good website, and am enjoying it thoroughly. I wanted to leave a different opinion and perspective, and insulting you was not my intent. My apologies.

    I will gladly debate folks though. I think the greater point of mine, that I did not spell it out this:

    Many people are looking to survive whatever is coming (in there IS something coming). Now we don’t know if this will be a total breakdown, or if we will just become a third world style country, or something like Greece, or a hollow state as John Robb (former Delta / globalguerillas.com) speaks of.

    What I think we should do is a middle way. Get ready for the now, the soon and the long range. This means gear, financial, health, etc.

    Don’t do things to JUST survive, do things to THRIVE in whatever climate is coming. Gold and investments are just one of those things that I think are prudent, as well as gear, land, knowledge, *training*, etc.

    Just my .02.

    By setting up resilient communities

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  47. Gold is mostly good at protecting wealth. If you aren’t wealthy, you shouldn’t consider gold as part of your preparations.

    When you are out of debt, and have a retirement portfolio, then it might make sense. But you’d probably be better off buying non-perishable goods that you use. That’s a better hedge against inflation for most people.

    Until we’re wealthy, I’m not worrying about gold, or the price of gold, or anything else. My goals are to be self-sufficient in an extended emergency (like dealing with a blizzard and ice storm for a week or so,) get out of debt, and enjoy life.

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  48. i dont see holding gold or silver as a way to grow wealth its more as an insurance against hyper inflation and as ive said before use balance in all your preps. a couple silver dollars can get ya fed when the ‘new and improved 2 ply’ version of the dollar comes out i/e QE-2 or 3 or 4 or however long they run the printing presses. plus a few pounds of pre 64 us coins dont take up much space

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  49. “When E.F. Hutton talks….”
    James, you are the Oracle. Great advise…everyone had great points. Iam sure when the economy has turned into a soup-sandwich those that have made investments in family, training, basic emergency supplies, etc will thrive. You can have all the gold in the world but if you dont have a gun to protect it Ill give you one of mine for 2 pounds of gold.

    See you on the other side!
    B

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