Archive for Investments

Jun
29

What’s up? Wall Street Journal

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Tax Increases are coming... 

 
  Throughout the course of my personal web surfing I find interesting articles to share with you all… This article in the Wall Street Journal caught my eye and it would definitely fit into our usual topic of discussions here…
 
   I assume you all will take a few minutes to read it as this will make more sense after you do… The premise of the article is that we are about to see another possible cause of additional financial unpleasantness in our economy. I know what you’re thinking, I must be wrong because you personally saw the leader of the previously free world on TV making all kinds of claims that we are no longer even in a recession? Sorry to be the bubble popping blogger that has to deliver another cold splash of reality! All the talk of our best days being ahead of us are probably true in the long run, the very long run!
 
   While I was reading this I was watching for the opportunity to catch a glimpse of media sensationalism… You know, playing it up to sell advertising. Typically I wouldn’t expect to find  a lot of blatant hot air in the WSJ but you know me, watching for the boogeyman around every corner. It was the bit about making GW Bush look like some sort of hero, mentioning that it was his tax cuts that will be sunsetting that has me the most worried… First as much as I’m more than a little skeptical these days as to the value GW was to any of us average Americans, below the arbitrary line in the net worth sand, you have to admit that a media source showing him in a positive light is highly unusual!
 
   If GW is being shown as a tax cutter and the media darling Obama administration a potential source of further economic disaster, my ears perk up… For the media to even spin the situation as potentially harmful, we all better be redoubling our preps as the storm is surely upon us. We are a nation set adrift in a leaky life boat currently half full of water. We can’t take any further rough seas without going down. I’ve already made my predictions that the world as we know it is in “Game Over” mode and just waiting for someone to push the off button.
 
   I don’t really care if this is nothing more than just a sunset to the previous tax cuts and it just so happens that a democrat is sitting in the oval office. Tax increases now can only mean one thing, less private spending and more unemployment. This will undoubtedly mean further emergency government bailouts and stimulous programs… I don’t know what everyone else is thinking but the financial numbers that are being used to describe our current debt are enough to make even the simpler among us scratch their heads. Surely the .gov isn’t thinking they will actually see an uptick in tax receipts?
 
   MANY small business owners are holding on by the skin of their teeth, this will be the final straw. The only good thing for the .gov is that these folks in most cases won’t qualify for unemployment. Unfortunately though their remaining work forces will qualify when they are finally let go. So, we can look forward to additional un and under employed individuals on the roles… These folks will more than likely end up behind on the house payments and all the other sour grapes that go along with that, bringing further pressure on the nearly lifeless real estate sector…
 
   We could go on like this for hours but the real point is that this is a big step backwards in any recovery that was even possibly on the horizon. If I had more faith in my leaders I would expect the president to issue a statement that these tax cuts would be extended for at least another year and then come up for review before being allowed to sunset… Not gonna happen, or at least I think it’s highly unlikely. Most politicians from either of the 2 big parties have a difficult time keeping their hands out of the public’s cookie jar, tax increases will easily be justified in their minds.
 
   Let the cards fall where they may! I frequently get emails asking me how long I believe we have before a major collapse and all that it will bring with it happens… I feel, just like many of you, that our fireworks show will be coming along just about any day now… No I don’t mean on the fourth of July but soon! This story is just more eveidence of further damage to the already sinking ship – PREPARE NOW!!
 
 
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Jun
25

You’ve got to know when to hold em…

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   Some of you that know me personally know that I’ve been liquidating some of my collection… This certainly isn’t because I don’t think I’ll need preps in the not to distant future… I actually believe that we’ll all be needing them now, or soon, more than ever! Since I’m a bit cash poor currently or to put it more accurately, the cash I have isn’t available for preps and or improvements to the BOL, I’ve been selling off some of my duplicate items and things that are just plain stacked to deep!
 
   As I’ve come to grips with letting some of these treasures go, I’ve been doing additional soul searching while I was at it… I turned 39 this year and I’m not in the best physical shape of my life, too much time doing the desk jockey routine. I’m convinced that riding a desk must be just about the farthest thing from what the human body was designed for, it’s no wonder that us paper pushers end up so soft. I digress, it isn’t my sorry physical state that I was pondering but my inner most feelings about what my prep inventory really required and what might be turned into cash for other prepping uses… That’s right, I’m not selling things off to pay the house note but to keep pushing forward with the more important things that wouldn’t get completed otherwise, at least not as quickly!
 
   What I discovered was that the “Red Dawn” syndrome of my 20′s has passed and I no longer feel convinced that I’ll be called upon to defend my country from enemies foreign or domestic… Wait, I know what your thinking! Yes we have more and more evidence that our enemies are closer to home than ever before and the time may just about be upon us to stand at our personal lines in the sand. I haven’t given up on the ideals of fighting for the cause of liberty, I have just come to see those around me as ever less likely to stand up even for themselves, much less liberty and freedom. This being the case, my previous belief of needing to have plenty of armament to spread around for recently shocked awake friends and neighbors seems highly unlikely!
 
   I even find myself less likely to go spend a day at the range than I once did… Ammo prices what they are and even cleaning the beloved battle rifle doesn’t hold the same appeal it once did? Who knows, maybe I’m completely crazy but I’m looking at my weapons more and more as the tools that they are, rather than the cool that they were… Don’t get me wrong, there are plenty of guys of all ages that are looking at their guns in the ways that I used too and I’m not about to say there is anything wrong with it – I just wish I had the same LOVE for the gun I used too, at least when it comes to justifying it’s place in the safe!
 
   I guess what I’m really saying is that I’m looking for a gun that’s going to earn it’s keep… Weather for hunting or homestead protection against 4 legged predators, those are my more likely scenarios these days, I’m gearing more to that end rather than say, “The other”…
 
   It’s true that many guns will serve double duty, however many of mine would be poor choices in the roles I find the most probable. This doesn’t mean for a second that I’d be caught unprepared or I’ll even go out on a limb and say out gunned by most that would cross my path, I wouldn’t! I’ve “collected” for many years and have taken advantage of many great buys that I’ve come across… I’ll recognise a tidy profit on most anything that I have or will decide to part with. This is a good example of something we’ve discussed here in the past – Investing in tangibles… My investments can relatively easily be turned back into cash and not even one will have lost value!
 
   I haven’t even posted this to the website yet and I can already feel the emails coming… “Why would you sell off guns right when we could be facing our darkest hours?” Well, for one, I think these coming dark hours will be better faced with some practical guns sitting beside a well stocked pantry, a well fed woodstove and a solid “debt free” roof over my families head… In recent years I wouldn’t have been forced to choose and hopefully you’re not faced with a choice like this… Given enough time, I would have found some other way to accomplish these goals and still kept the gun safe fully intact but I don’t think that we have the luxury of unlimited time!
 
   If there are others out there with this same feeling in their gut, get moving – do whatever you have to do to get your house in order… Typically I would say you can’t have to many guns but in this present global setting you COULD have to little of something else, like food!
 
   Let me just encourage everyone to do a little soul searching of your own and see if possibly you’re over prepared in one area and under in another? Maybe you’re like me and now is a good time to re-evaluate your holdings and see if there is a reallocation in order? No one can tell anyone else what the right answer is when it comes to something of this nature, we all have to decide for ourselves…
 
 
Prepper
Dec
11

Investments for the Prepper

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Pre-1965 Silver coins are real silver coins!

Pre-1965 Silver coins are real silver coins!

 

    As people that keep a close eye on the future, you won’t catch us off guard, we try to be prepared for whatever comes our way. At least that’s our plan! With this in mind I’ve been pondering the ways a prepper prepares for the future. More specifically the ways a prepper invests that are different than an average investor. We have a different set of priorities than many do and therefore it would make sense for us to put our investment dollars into different places as well. There’s quite a number of things under this category - Land, Gold, Food storage, Tools, Barter items but the investment I’m going to talk about today is Silver.
 
   What I’m referring to today in the silver investment family, is “Junk Silver”. When you hear junk silver referenced it means the old US coinage minted prior to 1965. Specifically, dimes, quarters and half dollars. These coins contained 90% silver. The coins currently in circulation, after 1964 with few exceptions, are nothing more than clad metal tokens. This is a coin that is composed mostly of a low value metal and than clad with a silver looking outer finish.
 
   It wouldn’t be at all inappropriate in my opinion to compare this physical reality of our current coinage to the remarks of Mark Twain. He spoke of the gilded age where everything looked great on the outside. However, scratch just below the surface and we would see that all is not as it seems at its core. Sound like the America we are currently living in?
 
   Take a look at the edge of any of the “silver” coins in your pocket… See that coppery looking layer in the middle? That’s something else, not silver, right? Of course these coins aren’t worthless, just worth-less, than a true silver content coin… For example, currently at today’s posting these “Junk Silver” coins are trading on the Internet at 16-18 x their face value. This means that a junk silver dime is worth about a buck seventy five ($1.75)… Not to bad, if you have some you wanted to sell…
 
   There are a couple of schools of thought on this investment strategy. Some credible folks suggest purchasing silver as a hedge against inflation. I would agree that this is a GREAT idea. The other camp would advocate using these metal investments and their current volitility in a manner similar to trading stocks… Buy low, sell high – I don’t disagree with this idea either but it isn’t the strategy I will be discussing for preppers today.
 
   I advocate us preppers taking a long look at what might be coming down the road… Can you see it? That’s right, some dark clouds on the horizon, doesn’t mean they’ll make it to us for-sure but it would only be prudent to carry an umbrella. This silver investment could possibly be that umbrella. This alone isn’t the answer to the potential of bad days ahead but it can be part of the strategy we employee. Just like a well rounded traditional investment portfolio, preppers need to have multiple ways of protecting themselves.
 
  I think we can all see and agree that inflation is eating away at the spending power of the our dollars. It’s this insidious enemy of our financial success that requires us to take steps with our investment funds that will allow us to activate a time machine of sorts. Junk Silver can be one of these time machine investments, bought today and held until such time in the future as it might be needed.
 
   In 1964 the value of a dime was 10 cents and if we all agree at the time of this posting that a 1964 dime is worth $1.75, what does that tell us… Our money is losing value. If we don’t convert at least a portion of our current assets into something that will stand the test of time, eventually the spending power of our current assets will look similar to that clad token dime in our pockets.
 
  Purchasing these coins really is just a way of turning today’s investment dollar into a tangible asset that is universally recognized as valuable for its underlying content. Not all that different than purchasing a shipping container of quality backup generators and then waiting until there is a wide spread power outage to sell them. Although I maintain that the coins are an even better way to guarantee your investment will be a sure thing… The coins can’t be degraded the way a complex generator might be… Purchase most tangibles and let them sit for 45 years and see if there quality has been maintained? The value may very well have endured but the quality would likely have suffered. Maybe this isn’t the best analogy but I think all you get the idea. 
  
   A number of sources are available to the prepper that wants to add this metal to his prepping portfolio… I regularly see vendors at the local gun show that trade in silver. In my area I know of 2-3 collectibles shops that have both gold and silver coins or bullion. Of course there is also the internet… Everybody from ebay to specialty companies carry precious metals. It’s really not at all hard to find, which also adds to the value as I’m describing it today, it should be relatively easy to convert back to dollars or their equivalent in the future.
 
   Like everything else I advocate, it’s more important to just get started rather than worry about getting it all done at once. There is no minimum investment required with these coins! You can buy just one thin dime or many thousands of dollars worth. Every investment portfolio is different depending on the intentions of the investor.
 
   Personally, I like the idea of having control of my assets and just like with free and clear land, a stash of real silver coins in hand may make a difference in our uncertain future of tomorrow.
 
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Dec
09

Barter goods?

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   What if the crap really does hit the giant rotating blade? Are we going to hope the stores just stay open? Is that a realistic option for the prepper community? We’ve all seen the pictures from Katrina and other famous Headline making disaster areas… You know the ones I’m talking about, where the sheeple are seen standing quietly and orderly in line for the few remaining resources. Right? I mean come on, we’re all brothers and we’ll share and share a like if there ever are supply shortages for some strange reason…
 
   Sound unrealistic, I agree! Now hear this, I WILL do my best to help my neighbors and extended family! I imagine that I’m not alone in this… I stock up on the things that I know we’ll need for sure but is that enough? Maybe? Honestly probably not, I’m going to forget something and as usual it won’t be some small thing that my girls or I will easily live without… We have to have a backup plan to at least attempt to cover for any shortfalls or short sightedness!
 
   Enter, ”BARTER GOODS” - those supplies of useful, tangible assets that might just fill the gap for our forgetfulness. We’re just talking here, so don’t get all upset if I don’t mention something that you happen to think is indispensable, you’re probably 100% correct! I personally know I don’t have this area all figured out so step up to the plate and fill in the blanks I’ve missed…
 
   It’s possible that someone reading this is unfamiliar with this whole barter goods concept. Don’t feel out of place, this prepping is a broad topic to be sure! I’d even venture to say you might already have thought about stuff along these lines but call them something different than I do… These really are nothing more than goods(items) that we would be willing to trade someone for something else we were in need of… Simple concept but it’s not easy to make an exhaustive list of items that we remembered but we think others will have likely overlooked…
 
   Let’s just go over a few possibilities and as usual we’ll each have to make up our own minds what to actually do! I couldn’t begin to cover everything that might qualify as a barter item so remember this isn’t an exhaustive list but only one to get everyone thinking…
 
  • Common Caliber Ammunition
  • Sewing Supplies
  • Repair supplies
  • Second hand tennis shoes and/or work boots
  • Heavy duty gloves
  • Toilet Paper
  • Feminine Products
  • Strike anywhere matches
  • Junk Silver Coins
  • Batteries, variety
  • Food supplies, beyond your families needs…
  • Cigarette lighters
  • Candles
  • Various petro fuels, beyond your families needs…
  • Flashlights
  • Radio receivers (AM radios)
  • Cold weather gear
  • Cook stoves
  • Camping Coolers
  • Buckets
  • Tarps
  • Plastic bags
  • Sheet Plastic
  • Firewood
  • Kerosene heaters
 
   Alright, this is just the initial 25 items that came to my mind… I’ve seen lists that numbered easily into the hundreds. I personally like to watch for sales. I’ll usually spot things after a holiday and I frequent garage sales in season also. If you start to look at things with a critical eye, you will surely see items that could fit this category.
 
   These things aren’t suppose to be your first line gear. They should be something that would work in a pinch for the completely unprepared neighbor up the street. I don’t recommend buying things just to have them but with the idea of tradability or even charity. If you want to open a general store after the world finally comes to an end than more power to you. Plan accordingly, I know some folks that would be happy to pull security duty, for a price…
 
   I always liked the parts of survivalist fiction were the author or film maker describe “Barter Town” scenarios. Think movies like Mad Max Beyond Thunderdome and Waterworld. Wait, I didn’t say these were good movies, they weren’t but I just like the parts were there is commerce commencing in the post apocalypse world… Probably a better example would be the chapter from “Patriots”, where the retreaters went to the “Barter Faire”… I guess its just the business man in me to think this way. There will always be a need to fill when resources are short. I don’t advocate gauging your fellow man but only to be in a position to do some trading for the things we missed in our own preps.
 
   Hopefully, this post will get your mind turning in the right direction. For many of us this isn’t a knew concept but it might deserve a fresh look at those items you put back years ago. These things might even need to be rotated? None of us needs to go running out just to buy barter goods but if you keep your eyes peeled these things will present themselves. Someday, maybe even one day soon, we might all be very thankful to have the extra options that these trade goods could provide?
 
 
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Nov
06

Investments for the Prepper

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What do you see - Furtile Fields of thought?

What do you see - Furtile Fields of thought?

 

   As people that keep a close eye on the future, you won’t catch us off guard, we try to be prepared for whatever comes our way. At least that’s our plan! With this in mind I’ve been pondering the ways a prepper prepares for the future. More specifically the ways a prepper invests that are different than an average investor. We have a different set of priorities than many do and therefore it would make sense for us to put our investment dollars into different places as well. There’s quite a number of things under this category - Gold, Silver, Food storage, Tools, Barter items but the investment I’m going to talk abut today is LAND.
 
   I think that land is an obvious investment. It’s true that many people will invest in this so that shouldn’t count as a Prepper Investment or should it? Well, I for one think that it should. I know what you’re thinking, I’m just trying to justify my purchase of the BOL property. Yes, I do want to feel confident in my land procurement but I had that argument with myself prior to purchasing it. I say that land is the first thing that a serious prepper should put in their long term investment portfolio. Yes, I know all about bug out this and get outa dodge that, these are all good projects to get accomplished ASAP but what I’m thinking of is a real investment. The kind that will pay a dividend!
 
   The land I’m referring to may be completely different than any land that other investors would be interested in. Unless we’re talking about other preppers… Even though we may both be concerned with the old location, location, location issues. Our location will often be in the opposite direction of the average land speculator. I would even like to propose that the land investment I’m thinking of will be of far greater value in the long run.
 
   Whether you’re one to believe in the “Golden Horde” that James, Wesley Rawles is expecting, even better yet expecting to avoid… or perhaps you’re more optomistic in you’re fellow Americans – lack of initiative to even bother looking for their better prepared brethren! Either way, the land that’s the most valuable to us isn’t going to be of as much value to the average McMansion building, contractor. It could easily be just as beautiful as the land the contractor would pay big bucks for but its just not in the right place.
 
   Our location will be as far out of the way we can comfortably get away with. I know I shouldn’t speak for all preppers but I have met and or corresponded with more than a few and so I feel pretty sure of myself when making that assumption. Often preppers will pick an out of the way location for a couple of reasons. First,  it will be further for the Golden Horde to walk and second the further the properties are from formal civilization the less expensive they become. Often for the price of the land alone that an average “consumer special” 3 bedroom/2 bath house would sit on in the city,  a prepper might secure a multiple acre spread with a home already on it.  It wouldn’t even surprise me if it had more than just a house, possibly a barn and fencing already up too!

Old farm buildings look like paradise to me!

Old farm buildings look like paradise to me!

   What I describe here will probably cause much heated debate as to my drawing unfair conclusions for all the civilized preppers that have a city based homestead. If thats you, don’t be offended but I think many preppers are taking the rural route over the city to put as much distance between them and the unwashed/unfed masses as possible. With the right set of circumstances a prepper could have opportnities in the urban environment but it will be more difficult to secure an inexpensive property and adequately stockpile supplies!
 
   Anyway, back to the land – sorry for the pun but it just seemed to fit right there. Land as an investment is something that is universally accepted but I propose you select an investment property that can begin paying for itself as well as paying back its purchase price from day one. With the right perspective and the right piece of property a land owner can achieve a higher degree of self sufficiency. This can be through the production of food crops, a woodlot for firewood and small or even large stock for the stew pot. Sometimes it’s easier to install an alternative energy source with a little more elbow room for placement or advantageous conditions. Any one of these things could turn the land from just a place to live into an actual dividend paying investment.
 
   These suggestions don’t even take into consideration the upside potential that almost always comes to the landowner. The fact that land prices tend to only go up. We’re in an interesting place in history currently where that assumption of appreciation isn’t as clear cut. However, if a prepper where to use these interesting times to their advantage, a better deal might possibly be struck this year over any other time! Something else to always consider - what will the future hold? Higher prices, almost assuredly we will experience inflation from this foolish spending policy that our government has been playing with as of late. Inflation means higher prices, not in a way any of us would be glad to see but higher none the less! I don’t advocate making a purchase and then expecting to cash out during an inflation spike. This strategy could work but its not the course of action I think is best.  

I see a preppers storehouse in disguise

I see a preppers storehouse in disguise

I say make a smart investment in a sure thing! Land will be worth more in the future than it is today. Find a bargain on a piece of property that you can afford. Use the property for any and all the assets you can. The property alone is an investment but what if you plant those fruit trees on it. They basically will take care of them selves, at least on a day to day basis. What will a property with mature fruit trees be worth tomorrow? More or less than what you paid for it? How about the fact that you can eat the fruit seasonally from your own bearing age trees for as long as you own the land? What do fruit trees attract? Wildlife, now you have a 2 for 1 situation… You get to eat the fruit and the wildlife, if you’re into wild game. Do you see where I’m going with this, land is a better investment than any 401K I’ve seen in a while.
 
   Now, I’m not saying cash out the 401K and buy land with the money! I think that would be foolish as the penalties alone would make that a bad play. What I am interested in is what you may choose to invest in with investment dollars from this point forward or even a portion of those investment dollars. These are interesting times and they call for new strategies, take control of some of the money you put away for the future. Land is just one way that a prepper could take a hands on approach to making his money work for him, also possibly allowing personal goals to be reached in the area of becoming more independent.
 
  As always these are just one mans opinions and offered to the group as food for thought. I’ve been watching the news lately and I just don’t think we are playing by the same rules anymore. Putting money away in a traditional way for our future is just not going to cut it for many of us. In the coming weeks I want to discuss the ways I think our money could be better invested in tangibles as a hedge against the insanity that seems to come out of our power centers on an endless basis. My ideas are just that, my ideas, most of the things I’ll bring up I’m currently doing with my families investment money but I only want to encourage you to think it over and maybe some of these ideas will work for you and yours as well!
 
   I apologise for not getting a post up yesterday but some technical difficulties prevented me from completing my daily ramblings. Have a great weekend and take advantage of the last few days before the weather turns cruddy for the winter.
 
 Prepper
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