Many of you may be aware of the coming economic collapse. This economic collapse will be a devastating hit to our economy brought about by the steadily increasing, and soon to be spiraling, devaluation of the American dollar. The short sighted policies of the Federal Reserve and the incessant borrowing and spending by our federal government are devaluing our dollar through inflation that is caused by the continuous printing of money, to the tune of $85 billion a month, known as Quantitative Easing. This process is a house of cards built upon a foundation of matchsticks rooted in sand. It is the unsustainable propping up of Wall Street and the stock market, while leaving the rest of the economy stagnant. As this continues, which it appears it most likely will, the bubble will eventually burst, and Wall Street and our economy will suffer a catastrophic crash. When this occurs, our dollar will be worthless.
As news and awareness of the impending economic collapse grow, many of you may have noticed the increase in calls to invest in precious metals like gold and silver, as a way to hedge against the implosion of the dollar. Numerous firms have commercials on TV and radio encouraging these investments. For the rich and elite, with the money to spend and invest, this may be a good idea. For the rest of us who live paycheck to paycheck, and consider it a win if all the bills are paid in a given month, investing in gold and silver is just not feasible. For starters, gold and silver have become very expensive. It requires quite a bit of money up front to be able to buy enough of these precious metals to be a worthwhile hedge against a financial collapse.
Another aspect of investing in gold and silver that is troublesome to me is the physical aspect of it. Some places that offer investments in precious metals only offer shares. You get a piece of paper showing that you own a specified amount of gold. However, the gold is held somewhere else, and in the event of an emergency, when you think that you will need that gold, you may have trouble getting it. You are left with worthless paper, the same as what the dollar will be upon collapse. The only way that gold or silver can be safely used as a hedge against the dollar is if you actually physically hold and control your precious metals. However, while gold and silver will most likely become the predominant form of money again post-collapse, barter will be the most feasible method of currency in the short term, as people trade goods they have for goods they need. You cannot eat or drink gold and silver, or use it for any of the variety of needs one will have. It becomes extra weight and a burden in the short term, with little useful benefit.
As of the time of this writing, according to Monex the price of gold stands at $1,324 per ounce, with the silver price at $21.93 per ounce. Just for comparison, the price of gold in 2008 was around $800/ounce. Many experts have speculated that the price of gold could rise to $3,000/ounce within the next few years. If you have thousands of dollars lying around that you can invest, then by all means, buy some gold. For the rest of us, may I suggest some other precious metals to invest in that are much cheaper and easier to acquire, namely brass and lead. In the event of an economic collapse, wherein the dollar will be worthless, there will be great civil unrest. Any food, water, and other supplies that you may have on hand will become very important and invaluable, and those who have not prepared will most likely come looking to take what you have. Brass and lead, in the form of ammunition, will be your best defense in protecting yourself, your family, your home, and your supplies. Ammunition will also likely become a form of currency in the barter system, as people with excess ammo may trade some for supplies and necessities. In a post-collapse environment, ammunition will indeed be the most valuable commodity, for it enables one to protect and defend everything else that may hold value.
As a supporter of the 2nd Amendment of the Constitution, I urge everyone to exercise his or her right to keep and bear arms. Just as important as the firearm you may keep, is the ammunition that goes in it. Without ammunition, a handgun, shotgun or rifle is only an expensive and finely crafted club.
I encourage everyone to do his or her own research. I am not an investment specialist and have no formal training or education in the investment industry. This is only my opinion and you can take it or leave it. Gold and silver may be right for you. Brass and lead is right for me.
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