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Thursday, November 12, 2009

Silver and Gold Preps

 Precious Metals (PM) have been in the news as of late.  Gold has hit all-time highs, recently going over $1,100 an ounce.

There has been a LOT of discussion about having PMs as a part of a preparedness plan.  In general, I agree with those sentiments, IF:
  • have all, or a signficant portion of your food and equipment preps already completed.  Don't put money into PMs in lieu of having adequate food supplies and equipment.  You can't eat a silver dollar!
  • don't have to borrow money to get the PM.  Debt, especially in a tight economy, is a killer.  Don't mortgage your future for a bit of coin.
  • don't think of it as an investment, but as a hedge against inflation.  If things suddenly turn rosy - economically - PMs will most likely take a significant hit.  NEVER put all of your "eggs in one basket".
We have put away the equivalent of a few months of our cash expenses in PMs.  Food, gasoline and the like.  If there is some sort of Bank Holiday or sudden economic upheaval, we can still pay for our larger expenses, such as mortgage/rent and utilities with a check, but we might not be able to get cash from an ATM or use debit or credit cards.  PMs can fill that void.

Accept The Challenge

Our government has shut down the banking system once.  There is no reason to believe they won't do it again if they deem it necessary.    If banks start failing more rapidly after a disappointing Christmas season by their retail business customers, or if the Commercial Real Estate bubble does in fact burst as expected, it's not out of the realm of possibility.  Planning for such an eventuality - even a short-lived one - is prudent planning.

Unless you believe that our economic system will revert entirely to a barter economy (big, big, BIG long-shot, IMO), having some readily available cash and/or PMs (both well-hidden!) for short-term emergencies should be a part of all preparedness plans.
Copyright 2009 Bison Risk Management Associates. All rights reserved. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates.


Ride Fast said...

[...] Today's blogroll additions [...]

Julie said...

Here by way of "Ride Fast and Shoot Straight" .. will definitely be sticking around. Great stuff. Keep up the good work.

Chief Instructor said...

Well thank you!

A reciprocal link will be put on my site just as soon as I put up my Daily Visits link section.

I'm in the middle of my "chicken with a head cut off" routine!

Andrea said...

mmmmm....chicken with it's head cut off!

We recently sold a bunch of gold, with the intention of buying food and such, but instead, it paid for copays for 2 little kids sick with swine flu. Sigh. "Life is what happens to you when you're busy making other plans." Wise man said that LOL.

Chief Instructor said...

LOL, no, that doesn't relate to the rooster "dispatching" discussion over at your place!

Gold: Personally, I think that's a great example why having a bit of either cash or PMs squirreled away is good idea. "Stuff" happens.