Gold and other investments for the Single Dude

Gold CoinsThe world financial system today is in enormous trouble.  Greece is just the tip of the iceberg.  Next: Italy, Ireland, Portugal and Spain (not necessarily in that order).  The Greek train wreck will be the first domino to fall in what will become a worldwide crisis that has the potential to make 2008 look like the common cold when compared to the Ebola virus. Time to cover your asses, dudes.

I didn’t want to give investment advice but Charlie talked me into it. You might as well get it here if you aren’t going to get it somewhere else. I imagine that many of our readers are not much into the heavy duty reading required for dealing with financial and economic blogs, but Charlie and I personally find Zero Hedge to be immensely entertaining, educational and often filled with practical advice.  The regular mainstream “investment advisers”?  They don’t give a shit about you unless you’re worth millions and even then they’ve been known to fuck over some of their best clients. Like when Goldman Sold a bunch of shitty CDO’s and MBS’s to their clients and then secretly bet against them making a fortune.  You are just a sucker for these people, “slow and steady, invest in mutual funds mirroring the broad market” advice will be particularly disastrous for you when the world market tanks thanks to the unbelievably dishonest, greedy, scumbag behavior of the big bankers who run today’s financial markets.  Those asshats at Goldman Sachs are not on your side.  They’re not on America’s side.  They are on their own side and that’s all.  You need to protect your assets from them before it’s too late and you end up like the dudes down in Greece.  So, how do you do it?  Let’s get started.

I hope you took the time to read my article “Now is the time to move abroad” as well as most or all of the supplementary recommended reading. Nevertheless, assuming you did none of that the first thing you need to understand is that all of the world’s largest economies (Read: US, EU, Japan, etc.) are run by the equivalent of retarded children with Fisher Price printing presses and an unlimited supply of ink and paper. The whole world is printing money like crazy and is currently engaged in a race to the bottom in terms of currency value. The money that they are printing is known as “fiat currency” – what this means in plain English is “dirty paper backed by nothing”. The only thing that separates Monopoly money from Dollars, Euros or Yen is the word of the government or to put it another way “because they say so”.

All of this is clouded and convoluted by complicated economic jargon which really just describes very simple concepts such as “quantitative easing” which actually means “printing money” or “fiscal stimulus” which means “spending money” (or even more accurately “wasting money” or “throwing good money after bad”). Baudelaire once wrote, “The greatest trick the devil ever pulled was convincing the world he didn’t exist.” I find that quote very analogous to the greatest trick today’s scumbag bankers, politicians, economists and academics have pulled… namely that they have convinced the general populace that economics is a field too difficult for the common man to understand and that it is best left to PhD eggheads who know how to properly utilize fancy yet misleading language. Furthermore they have also convinced the common man that the economics of a country is vastly different from that of an individual or a corporation. It’s not. Only through the use of fiat currency is “the man behind the curtain” able to create the illusion, for a finite period of time, that a country (or shall we say a sovereign state) obeys a different set of economic laws than an individual or a corporation. It is nothing more than a trick, something like the slight of hand a magician uses to make you believe that he can make objects disappear. Unfortunately for the scum bags and anyone else who isn’t in the know, the game will be up soon, and it could be up a lot sooner than you imagine.


The economic magic trick of fiat money always ends in disaster, usually a hyper-inflationary disaster. There are tens of examples of hyperinflation even in just the last 30 years. One of them comes from Bulgaria where I sit at the moment writing this article. Most people are of the opinion that “This can’t happen here, this is [insert powerful, respectable Western country].” But they can’t really verbalize an even remotely logical argument why it can’t. Most people seem blind to the fact that hyperinflation is a relatively common occurrence in the modern world. Quite simply it is the result of printing too much money too quickly. You need only to take a look around you to recognize that many of the worlds largest economies, especially the United States are: 1.) effectively bankrupt, 2.) printing money like fucking crazy, and 3.) taking on additional debt at an alarming rate and/or monetizing their debt. The few that are still solvent, such as Germany, are hurling themselves toward insolvency at breakneck speed by trying to bail out all the losers. Bail outs and “fiscal stimulus” do not work, they only kick the proverbial can down the road.

All of this is really quite simple if you just break it down into simple examples and analogies using layman’s terms. Let me give you some examples:

1.) If I gave everyone in your town $1,000,000 tomorrow, would you expect many of the prices around town to suddenly rise? Of course you would. Wouldn’t you expect the same to happen when the US Government pumps $2+ trillion into the economy as a whole?

2.) Assume you are unemployed and completely broke. Can you resolve your problems by “stimulating” yourself by building an addition on your home or purchasing a fancy new sports car? Of course not! What do you think is happening when the US attempts to solve the problems of high unemployment, a slow economy and a terminally bankrupt federal government by spending more money it doesn’t have to “create jobs”. Will that work? NO! Just as you cannot spend your way out of debt neither can a government, a government can only create that illusion for a period of time because a government has a printing press. The government has only two sources of income, extorting money from its citizens through direct taxation… or printing money and stealing it via an inflation tax. When they can’t tax directly anymore they tax with the printing press. This charade inevitably ends in hyperinflation and/or a government default.

3.) Your town has hit hard times and your local government has decided to help the little guy by enacting price controls (watch out, that’s coming next, governments always try to fix their inflationary fuckups with price controls). Let’s say that they decide it would be better for everyone if a 2 liter of Coke cost only 99 cents instead of $1.99. However, the government, in its infinite wisdom, is continuing to print money because that is the only option left for paying their debts. This pushes the inflationary price spiral to ever growing heights. Of course the citizens of your town will be delighted at the new low price of their cola, however what will happen when the grocer runs out of stock and tries to reorder? His local Coke sales rep will tell him to go fuck himself because at this point it actually costs $2.39 just to make a bottle. You guessed it – shortages come next!

As I’ve said before nothing is a complicated. Unless you are a complete retard, you should be able to understand the basic concepts of even the most complicated topics. I don’t care if you’re talking about nuclear physics – if a so called expert can not get the basic idea across in layman’s terms they either don’t know what they’re talking about or they are bullshitting. Few fields are more chock full of bullshit than finance and economics today.

If you’re still with me let’s get on to the investment advice portion of this article. It is still true that nobody can predict the future, but absent a radical shift in the current trend it is quite obvious what you should invest in.

1.) Precious metals, especially gold: Precious metals have been used as real, sound money pretty much since the beginning of civilization. Gold is particularly good because it is very valuable per unit of weight and volume making it easily portable Also, being a noble metal, it will never corrode or otherwise degrade in any way.

2.) Agricultural commodities: The world needs to eat, hyper-inflationary crisis or not. If you have food, you (or at least your assets) will be in demand.

3.) Base commodities: We hope that we aren’t going to be living in a Mad Max type world in the near future and as long as that doesn’t happen people will still be building things. To build you need the basic commodities and energy: iron, steel, copper, oil, gas, coal, uranium (for better or for worse I don’t think nuclear is going away any time soon), etc.

4.) Dividend bearing commodity producing stocks in resource rich countries (Canada, Asutralia and Norway are good examples): It depends on your appetite for risk whether or not you want to play in this category. However, all else being equal, the stock of a company that produces a given commodity moves in the same direction as the price commodity but much more significantly. If you want an example watch what happens to the price of junior gold mining stocks (some of the most volatile) in response to changes in the price of gold and you’ll get the idea.

5.) Currencies: Generally I would rather hold hard assets than any currency but that isn’t practical. Everybody needs money to spend for day to day expenses (at least for the moment). You will need to keep some amount of money in your local currency. But other than that there are four currencies which I think are safer than the EUR and the USD: Norwegian Kroner (NOK), Canadian Dollar (CAD), Australian Dollar (AUD) and the Swiss Franc (CHF). The first three because these countries are backed by valuable natural resources, the Swiss Franc simply because the Swiss are slightly more responsible with their Fisher Price printing press than most of the others.

6.) Property / Real Estate: For the most part I’m against real estate as an investment at this time. Overall I think real estate is just going to get cheaper and cheaper. Sure some places it wont but you’re going to need a crystal ball to know where. The reason the vast majority of real estate has nowhere to go but down is that, contrary to popular belief, a roof over your head is not a necessity in the way that most westerners think it is. If you’ve ever traveled to poorer countries you will be shocked and amazed by how many people can live together in harmony in a tiny space. For a western example think about a frat house… 30 or 40 people living in a converted single family home (albeit it a large one). When the value of your dollar is evaporating into thin air by the minute you are not going to be thinking about buying a house or paying rent. You are going to be shacking up with buddies and looking to trade a bite of the bread you have for a sip of the wine they might have or whatever. You might even be camping out. Hell, there are already tent cities in the US. Anyway, there is one case where I would advocate real estate purchase right now: If you are relatively well off, you have the rest of your ship in order and the purchase will help you to establish a second permanent residency or passport. Then and only then would I say go for it. But don’t buy your place in a populace area. I’m talking about a mountain cabin or something. Some place where you can chop wood to heat the place and kill small animals for food just in case the shit really hits the fan. It may or may not get that bad but it is certainly possible given the way things are going. This is a cheap hedge, for example in Bulgaria you can buy a house in a village somewhere in the mountains for $5,000 – $10,000.  At any rate, today’s real estate markets are buyer’s markets so make sure you negotiate hard and get a really good deal from a desperate seller.

The advice given above is about as solid as I think you can get given the current circumstances. There are a few things you need to be aware of though. Depending on how much shit hits how many fans how hard, the stock and commodity exchanges could all collapse. You need to keep a vigilant eye and take your investments out of the markets and put it in physical precious metals if and when the time comes. Make sure when you buy gold and other precious metals you take physical delivery. I can’t stress this enough. A paper investment in gold, like an ETF or any kind of certificate is nothing more than a promise from the same scheisters (Read: scumbag piece of shit Wall St. bankers that got us into this mess in the first place) that they have your gold in a vault somewhere and will give it to you when you need it. No thanks. Take that gold physical and hide it in your mattress, put it in a safety deposit box, stash it abroad, bury it in the backyard or whatever. And don’t forget, the US Government made it illegal to own gold once before – nothing says it can’t happen again.

As I said above the only thing that would invalidate my advice is a major, major change in the current trend. It will be really easy to spot. It would involve things like President Obama (or whoever might be POTUS at the time) going on TV and saying things like “My fellow Americans, The United States of America is bankrupt. We have made many mistakes in the past and now we must pay for them. We will all need to accept drastically reduced standards of living, longer working hours and generally one of the hardest and most painful eras in American history.” But come on, we all know that isn’t going to happen. They are just going to print some more money, it is so much easier than facing reality. Like a junky offered just one more hit, they will not refuse it. They will continue to print because, just like getting high again instead of facing the withdrawal, that is the easy way out.

I know this is lengthy and serious article which is definitely not in the tone nor the subject matter typical for SingleDudeTravel.com yet I think it is important for Single Dudes everywhere. I want to leave you with a few final thoughts because should you choose to adopt a similar mindset and investment strategy to mine you will be confronted by naysayers. You will be accused of being crazy, stupid and wearing a tin foil hat. You will also probably told that the investments I have advised above are bubbles. They’re not. It might be a bumpy ride but the rise in prices in these investments is driven by money printing and the resultant inflation, not wild speculation. How can you tell when you’re nearing the end of a bubble? Just look to past bubbles like the dot.com mania and the housing bubble. Remember when maids and janitors were turning into overnight millionaires because they bought $1000 of AOL stock? That’s a bubble. How many janitors do you know that are gold or commodities millionaires. Remember the housing bubble? Remember when that Mexican fruit picker that couldn’t speak English and earned $14 an hour got a $750,000 mortgage in California (props to anyone that can send in the link to that article, couldn’t find it)? That’s a bubble! Until your taxi driver, your barber and the guy at work that is always the last one to get the memo are all trying to pitch gold investments to you at the same time don’t worry about bubbles. Any drops in price are a buying opportunities absent the above stated major shifts in US and world economic policy. One last way you can tell gold is still a safe buy, at least relative to the dollar: Compare what an ounce of gold could buy you over the last hundred years versus a dollar. As they say an ounce will always buy you a nice suit and it’s still true. That’s not all, the same amount of gold that would buy you the first* Model T way back when will buy you a Corvette today. And with that I rest my case.

The choice is yours but I recommend you take the red pill. Protect your assets and get the fuck out of the system. Escape the corporate prison, become financially independent and move abroad!

Disclaimer: I am not a professional, I’m not a licensed broker and I own all of the shit I listed above. This article is for entertainment. Fuck you regulators, where were you when Goldman Sucks was blowing up the world? I hope you die.

*Clarification specifically for GoldBug.

0saves

61 comments to Gold and other investments for the Single Dude

  • ammo42

    Investing in CHF is useless now: one year ago the SNB decided to print unlimited CHF to buy EUR in order to keep EUR/CHF over 1.20, so investing in CHF is basically the same as investing in EUR.

  • Mike

    As an FX fund manager, I can agree that gold is a good investment. I use it as a hedge against the entire system itself. I don’t actually use it as my main cash flow. As a matter of fact, I trade a similar amount to what I keep in metals too, because leverage allows you to do that. Say you only have $100 in your trading account but $900 in physical gold. Well you could still trade as if you had $1000 in your account and $0 in physical gold.

    However, until we get QE3 official announcement, gold is correcting/entering a short term bear market.

    If we don’t triple bottom at 1520, then gold will really break down.

    My prediction is NO QE3 in 2012. They are going to do anything they can to go Obama elected again, and QE3 would destroy him.

    Boris, I agree with you overall, but just look at what happened to gold in 2008. Sure, it lost the least amount of value, only about 30%, but still you need to realize how deflationary events

    Right now the markets know QE3 is off for at least 2 months, so gold and the euro are going to fall more. Once the Euro and stocks finally weaken enough, QE3 will be announced.

    But Boris what you are saying is to have gold in case of 2008 scenario. Yes, the next deflation will be worse than 2008. But what does this mean for gold? It ALL depends on whether or not the FED or another central bank does the bailing out. ECB has already used up their bullets and we all know it is the FEDs turn to bail out now. Once they finally announce it, it will be like Q3 and Q4 2010 after the QE2 announcement.

    Wow Big in Japan, I agree with you to the number my friend. $1300 gold wouldn’t surprise me at all. Only if $1450 fails (good technical support and the 21 month MA)

    My personal opinion, if you haven’t bought any gold yet, wait for QE3. You will get the best prices, and QE3 will essentially establish a new floor for the metals. May I also recommend buying silver, which has had a higher return since the bull market again, and is more liquid.

  • Nils

    Of course the assumption here is that if you keep buying gold from someone who would rather have your money than his gold you’ll at one point in time have to find someone who’d rather have your gold than his money (or whatever you are seeking to acquire at that point). The question is, who will that guy be and how is this going to play out? Ultimately, you will need to find a buyer. This also means that you are really not playing on how a potential crisis will play out, you are playing on selling into the ensuing panic. And I guess a lot of people never really thought about an exit strategy, and they say pretty asinine things to begin with like the dollar value paid doesn’t matter because the dollar is paper and really worthless. You gotta get out when the most ignorant are going to go in. Or you might just be the one holding the bag.

    Think about all the people trading in “paper gold”. Do you think they have any interest at all in acquiring physical metals? Hell no. Those of them who do own the physical trade in the paper gold just to make money on the shiny rocks they own, think about it: You can sell futures contracts against your physical, capture the contango in the futures by just rolling your short position forward, locking in ever higher gains then just force them to take delivery or buy back the contract once the bubble pops.

    You can make money in commodities but it’s not as safe a game as a lot of people make it out to be, like you can just go buy and hold forever and then the currency collapse is a foregone conclusion. Just look at Japan. Nobody cares about their debt:gdp, because it’s a fiat currency and they don’t actually borrow money. Their central bank isn’t even able to create the inflation that it would like to create. Jim Rogers has been talking a lot about the demise of the USA, he has been talking that way since the 80ies and remained wrong so far. He might not see it in his lifetime. The problem is that nobody really calls him on his shit, just as the other echo chambers don’t hold their talking heads accountable.

    Also you might just for giggles try and sell your physical and see what price you are getting vs. the price you would have to pay. It tells you what people who are longer in the gold business than you are thinking. Always know that there is someone on the other side of your trade who think he made the better choice.

    Think the various scenarios through. Have a plan and trade your plan. Saying “always be a buyer of gold” is foolish, just as saying the NASDAQ will go up forever or real estate prices will never decline.

  • Ajax

    Hey single dude travel i’m loving your blog and find it very informative and helpful. But myquestion to you today is if one has 10k in a saving account should he/she spend all of it on gold and commodities or spend half of it on gold and commodities and keep the rest in the savings account? Moreover what are your thoughts on forex trading?

    • Big In Japan

      As a trader myself I wouldn’t recommend trading forex if you know nothing about it…. It’s not a bad idea to allocate a few thousand into precious metals…But you never put all your eggs in one basket…Although the fundamentals for metals look great for the next decade there is some ominous signs of a big correction in gold and silver…I mean big correction…We could see a $1300/oz this year for gold…So its important to scale into any investment…

      Another great thing you can do is take some of that money of yours and invest in some books and educational/ tools and learn to trade before you invest your money… If at all possible find a mentor…You may find you don’t have the stomach for trading or maybe you would prefer stocks over currencies…Or maybe you want to be a bond trader…Bonds and currencies dwarf the stock market and that will be where the real action takes place in the coming decade

  • GoldBug

    OK bro I’m heading off to get my refund, but let me educate your dumb @$$ before I go…

    Firstly, nothing in your answer post is false. But a more detailed look into eras, and the full message of my first post is in order.

    The 1909 Model T, though cheap against its competitors, was still expensive ~in 1909~ the year of its intro, because cars were new tech, handmade, and luxury items for the rich. “By the 1920s, the price had fallen to $290 …… because of increasing efficiencies of assembly line technique and volume.”

    290 / 20.67 = 14 ounces of gold by my math.
    14 X 1785 = 24,990

    14 X 300 = 4,200 (or a used Yugo in 2001) I compared all eras not just highlights like “1909 versus 2011″

    Back to 2011– 25 grand is above econobox these days, but closer to than not. If you see I did my research a while ago when gold was lower it was a closer econobox to econobox comparison, say when gold was 1200 and cars the same price as now.

    So model T of 1920s = Well equipped Camry of today, fancy top of the line Cadillac of 1920s = insanely expensive Maybach of today– IN GOLD TERMS. (considering Dollar cost of the era in time)

    I compared cars/gold/dollars for the 20s 30s 40s etc etc and found my original conclusion to be true, with large (huge)swings. The whole point is moot for the period 1933-1973 when gold was illegal for americans, but the idea of gold value is the main thing.

    If you take a look at more cars prices through the decades against gold per $$ I think you will agree with me, or maybe not let me know!

    • Jeez guys, who cares? Just buy gold and you can buy an island after TSHF! Corvettes are kinda pieces of shit anyway, I’d much rather have a new 5-Series.

    • “You are only wrong about this.”
      “Firstly, nothing in your answer post is false.”

      Which is it? So you cherry picked a newer model ~10 years into the future to support your claim? So what? I was correct, therefore it was retarded of you to write “You are only wrong about this.”

  • GoldBug

    “That’s not all, the same amount of gold that would buy you a Model T way back when will buy you a Corvette today. And with that I rest my case.”

    You are only wrong about this. I have studied this and the amount of gold that bought a ModelT, the econobox of its era, would only buy a Hyundia accent or some other small cheapo car today. Cadillac gold of yesterday buys a Maybach today. I have found that the value of gold and the buying power of gold to have remained somewhat constant, while the fiat currencies decline at best.

    • No it’s not wrong. I don’t know where you “studied” this but if it was at some university you paid for I suggest you request a refund.

      The standard 4-seat open tourer of 1909 cost $850

      “Thus the United States moved to a gold standard, made gold the sole legal-tender coinage of the United States, and set the value of the dollar at $20.67 per ounce (66.46 ¢/g) of gold. This made the dollar convertible to 1.5 g (23.22 grains)—the same convertibility into gold that was possible on the bimetallic standard.”

      Thus $850 / $20.67 = 41.1224 ounces of gold. At today’s price of $1,798.30 that is 41.1224 ounces of gold will get you $73,950 or pretty much any corvette of your choosing with plenty of options excluding the special Z06 (it *almost* buys this, give it a couple more weeks) and ZR1 models.

      OK so it did rise in trading above the “official” price somewhat during WW I but that was after the introduction of the model T in 1909 and it certainly never went as high as the new $35 price they set in 1934 with the Gold Reserve Act. Nevertheless even at $35 that’s $43,673 today. I bet you could still snag the base model which stickers for $49,525 in today’s market form Government Motors!

  • technovelist

    Here’s a link to the story about the strawberry picker who bought a $700K+ house:

    http://drhousingbubble.blogspot.com/2007/05/yearly-income-14000-purchase-of-house.html

  • Edgar

    This is an overall Phenomenal Website! I stumbled onto it from typing “Single mans guide to Eastern Europe” into google, finding/reading “Help Wanted For Team Charlie” and from there I had to check out the rest of the site. Great Article and anybody that doesn’t understand it is just another part of the 99% of people in this world that are meant to stay average Joe’s for life. Don’t forget your Palladium and Platinum!

  • sanjay (uk)

    Hey Boris, just heard the spot price for gold has fallen over 10%. do you think this is a temporary blip and the gold value will rally?
    http://business.asiaone.com/Business/News/Story/A1Story20110927-301822.html

    so far i have a couple k left in one of those 60 day withdraw accounts (fucking regret it so much), so i cant buy for a couple months.

    • I think there will be a serious pullback in gold and silver when the market in general crashes this fall/winter, as funds and central banks sell their metals to pay for their bad bets. Sit tight and buy closer to the bottom.

      Looking at a chart of gold and oil vs the crash in 2008 should be very instructive.

    • Elijah Craig 18

      Sanjay,

      The best advice I ever got from an older PM investor was to stick to a regular buying program of physical metal and not concentrate too hard on spot price. Trying to pick tops and bottoms in a manipulated market will drive you insane. If you are following a set purchasing scheme your cost-basis will average out over time as you buy during highs and lows. Remember it’s all about physical ounces and not some wildly fluctuating price in some shitty fiat currency. When you finally exchange your gold and silver in the future, it won’t be for any recognizable form of dollars, euros or pounds.

      That being said, Charlie is right…there will be a huge beat down in spot price as the price of paper-backed precious metal funds plummet when investors realize they can’t take delivery and their “gold” and “silver” are nothing more than worthless pieces of paper. The price of physical metal will soar when this decoupling finally occurs. Keep stacking your physical and the ounces never disappear.

    • sanjay (uk)

      cheers both of you, will do :)

  • Cookeredoo

    I forgot Jim Sinclair. I’ll apologize to Trendmillionaire; I hadn’t scrolled down enough to read his post and didn’t want to steal his thunder. He has listed some great resources for information about the gold and silver story. He must enjoy Kingworldnews as much as I do.

  • Cookeredoo

    Boris,

    I was lucky enough to have been introduced to your line of thinking back in 2005 and have but one regret; that I didn’t buy more gold and silver at the time. I’ve read every Jim Rogers book (among many others) and have followed Jim Rickards, Pierre Lassonde, Ben Davies, Marc Faber, Peter Shiff, Eric King, Rick Rule, Keith Barron, Steven Leeb, Bill Fleckenstein, James Turk, John Embry, Jim Puplava and last but not least, Doug Casey. Every one of these guys has been consistently saying exactly what you’ve laid out so well in your article. I agree, we are no where near a top in the gold market.

    Thank you for such a well researched article

  • Trendmillionaire

    ps. Awesome website!

    I found it through a link to your physical silver article. I like that you are giving good financial advice as well as fun travel tips in these economic times. The reality of what is about to happen will hit most of the middle class like a freight train to the back. The normalcy bias has created a class of servant-type civilians who listen and nod yes when their government or Mr. Bernanke says something on tv. History will repeat and repeat and repeat and the rich will get richer (along with the very knowledgalbe, like peter shiff, mark faber, Jim Roger, Gerald Celente, Rick Rule, Eric Sprott, James Turk, Louise Yamada, Michael Pento, Stephen Leeb, Jim Sinclair, Richard Russell, Ben Davies, the list goes on and on but you get my point ;-) )

    And may the many readers of this great site, all the fellow single dudes out there google at least one of the aforementioned great economists above and check their track record then check and see what their current views on the economy and how to invest are now…

    you will find they are spot on with this great article (I am in the camp that believes physical silver is going to be the investment of this decade, the gains will blow your mind. Jr. gold/silver miners too, and throw in some Call options on the bigger miners SLW SVM etc.)

    Good luck and become wealthy single dudes!

    :-)

  • Trendmillionaire

    Boris, you are dead on with everything in this article. You impress me with your financial IQ.

    Cheers to us in 2 years being many times wealthier than today.

    Ryan

  • sanjay (uk)

    Hi there, Boris awesome post. I am thinking about getting some gold coinage, what would you recommend? I have heard from various sources that the Krugerrand is pretty good, (lowish premium, widely available) but not sure what is more useful if i’m travelling abroad etc.

    Another question i have, probably a noobish one, is that how easy is it to travel with coinage on you, you dont have to declare it or anything do you?

    cheers
    Sanjay (from the uk)

    • Hi Sanjay,

      Some of what you are asking is over my head and I do not have experience dealing with UK dealers. I would say if you want to deal in coins get whatever sovereign currency you can at the lowest markup over spot. The point of having sovereign currency is that it always (at least in all cases that I know of) has a face value at a tiny fraction of its melt value. I travel a lot and the limit for undeclared currency I see most often is $10,000 USD or 10,000 EUR. So in this sense you can carry many times more than that without having to declare it. However I am not familiar with every countries laws so it pays to do your research. Usually you can buy bars of gold for a lower markup over spot than coins. If you go with bars I recommend PAMP, Valcambi, Perth Mint, UBS or Credit Swiss. They should come sealed with certificates of authenticity. Do NOT open them.

      Under no circumstances should you buy “numismatic” coins unless you are a professional coin collector and know what you’re doing. That is the best way to get ripped off big time.

      Hope this helps.

    • I like Mexican gold pesos as well.

  • El Matador

    Real Estate? Minimal effort? You mean where tenants trash your place and you have to answer their phone calls at 2am because they need their toilet fixed cuz it backed up when they flushed down month-old casserole leftovers? No thanks, more stress is not what we’re going for here. Less stress, more sleep.

  • Depends on your definition of leverage. I mean, semantically, yeah – it will always carry at least a technical risk. Ideally, you’re working with asset leverage (so, say all markets collapse, all currencies are useless, and no one has a job – leverage on commodities and real estate still kick ass because even in Mad Max crisis zone people still want a roof and people still have to eat, so you’re dealing with REAL leverage).

    Shitty leverage is buying shitty stock options built by shitty brokers who don’t even understand the algorithms that they’re using. You can’t hold your leverage, touch it, feel it, walk inside it, eat it – then it isn’t real leverage. If that makes sense.

    • I disagree with your assessment on real estate for most of the world. I am also not sure I understand what you mean when you say leverage.

      • Yeah, leverage has a lot of different meanings depending on the context, I was talking about this: If I’m sitting on my ass while you and ten others mow lawns, but I make money off of it – that’s leverage. The root concept of wealth is built around the idea of developing all sorts of leverage, in as many different situations as possible.

        As for real estate, I totally agree. And even in a true Mad Max crisis owning real estate would most likely totally suck. If people are robbing each other for food, owning a ten bedroom mansion will be totally worthless. But in the States, currently at least, I think using real estate to create leverage can be a great way to build income streams with minimal effort.

  • I’d be happy to. Investments really are something more young single guys should be paying attention to, if you’re waiting until your mid thirties or later to look into it you’re already way too far behind. Not to mention, proper wealth building means a lot less work and a lot more money even in the short term. It’s all about leverage, one way or the other.

  • Gold can be a great investment, and I like that you mentioned other commodities too. I would have liked to see real estate covered in more depth, because while it is becoming a less fashionable investment option thanks to the grand and wondrous year 2008 it can provide the single dude with a lot of options – since it is both a long term, value investment but holds all sorts of growth options (flipping properties) and can pay out steady dividends if you rent them out. I have several friends who couch surf, play guitar all day, party all night, and live off the rent from just a couple of small one or two bedroom houses that they bought, did minimal maintenance to and rented.

  • ThousandMileMargin

    I agree with you about gold but be careful with commodities and commoditity currencies.
    The Australian dollar is very highly valued right now because people still buy the China story. Our economy has been going great because the Australian housing bubble hasn’t popped yet and the Chinese construction bubble hasn’t popped yet, so they are still buying heaps of iron ore and coal from us at inflated prices.
    However, it looks likely that Chinese construction will slow down in a couple of years due to oversupply – they had 64 million empty apartments at the end of 2010 and they are building another 30 million apartments per year at the moment. At that rate they will have 150 million empty apartments by 2014.
    Betting that this crazy construction rate will continue even when they have enough empty apartments to house 400 million people is not smart.
    When constuction slows down, iron ore prices will drop, the Australian dollar will fall, commodities will get sold off as the paradigm changes.
    House prices in China have already peaked in Beijing and Shanghai and will soon peak in the 2nd & 3rd tier cities as more oversupply is created. This will lead to the price bubbles popping in Beijing, Shanghai, Hong Kong, Sydney and Vancoever (the favorite overseas investment locations for Chinese).

    When commodities fall AND the housing bubble pops in Australia, what do you think will happen to the Australian dollar?

    Gold may do well as Chinese real estate prices slump as Chinese investors look for an alternative store of value. I certainly expect it to do well in AUD terms as the AUD deflates.

    • Thanks for a very interesting comment. I’m getting out of all fiat currencies long term.

    • That is a very valid point. To be clear I’m not for any currency, I’m just saying for right now it’s a necessary evil to have some currency and of the choices available I like a basket of CAD, AUD, NOK and CHF. I always try to avoid putting all my eggs in one basket.

      • ThousandMileMargin

        The problem is that everybody else has the same idea and they have already bid up your fashionable currencies (CAD,AUD,NOK,CHF) relative to the dollar and the Euro.

        There’s a risk that the herd will later reverse direction and stampede out of CAD and AUD back to the US dollar.

        Personally I expect the Australian dollar to hit 50 US cents some time in 2015, as the twin housing bubbles in China and Australia deflate like Dubai and Ireland over the next 4 years. That might not happen, but it is a plausible scenario.
        Longer term the USD will lose a lot of value, but it may rally in the medium term (1-5 years)as investors dump China and commodity currencies and the Euro crisis just gets worse and worse.

        I notice you say you avoid putting all your eggs in one basket, immediately after you mention investing in a basket of currencies.
        Well a basket of currencies IS one basket. A paper basket.

        The reason I’m betting on gold is because I think people will gradually realise that all currencies are unreliable.

        • I don’t think you are really getting my point. First the currencies are only for a bare minimum. I am clearly recommending that people keep as little as possible in any given currency but for what you need to keep liquid I’m recommending those four. When I said putting your eggs in one basket I meant one currency. You may or may not be right about short term moves but in the long run those currencies have a lot more going for them then the USD or the EUR. Betting the farm on gold is putting your eggs in one basket. Buying some commodities, some different precious metals, some stocks and some currencies is hardly putting all your eggs in one basket.

          • ThousandMileMargin

            I do get your point. You are seeking to reduce risk through diversification. But that only works for assets with a low correlation. My point is that the four currencies you mention are part of a currently fashionable pro-China anti-dollar trade, so they are actually highly correlated.

            If you have some US dollars some Euros and some gold, that’s real diversification.

            If your portfolio consists of AUD, CAD, BP, BHP, Caterpillar,Toyota, silver,copper, soy beans and oil then you appear to be diversified across commodities, stocks, precious metals and a couple of currencies. But all these assets will plunge in unison if the construction bubble in China stops.
            What you have here is a bunch of different eggs in one basket.

            Having all your eggs in one basket isn’t necessarily a problem, as long as it is the right basket. If you think your portfolio is diversified when it is actually merely variations on the same bet, you could end up with egg on your face.

          • I disagree with your entire assessment. I find betting on USD and EUR to be a completely idiotic move. The plunge in commodities and CHF NOK AUD and CAD may or may not materialize. If it did I would view it as a buying opportunity not a panic situation. Trying to precinct short term moves is a fool’s errand. I foresee the bull market in commodities and precious metals lasting at least 5 years more and maybe 10. Rampant fiat money printing cannot have any other result than higher prices for basic commodities and precious metals. Until that trend changes there is no reason to think otherwise.

  • WALKER

    Boris, well said.
    The key issue of holding gold is gold now “priced” in Comex. Each oz gold has been sold for 80 times. From deflationist point of view, or 1930 depression era, price of gold will drop like a rock. Deflationists think cash will be the king instead of gold. It depends on the Fed, how they manipulate the market. One thing is sure that all govermrnts are broke. To keep all Fed and local goverments afloat, keep pring money is the only option.Since 80% of the dollar held in foreign hands,before TSHTF,there is a chance that deflation occur, but the end result will be hyperinflation.
    I was in Tokyo recently, I did not see one car in the departure section in the airport. I mean “zero”. Japan as a third largest economy in the world is doomed.Things are bad every where I traveled.
    BTW, Boris, American girls although they are not a great candidate for a wife, I think they are better than Europe girls. Atleast they have more smiles in their faces,right? Trust me, not all asian girls or foreign girls are great. The Chinese girls from Mainland are bad, get away from them. Taiwan girls are great, but hard to come by. I has asked my daughter don’t marry an Amrican man.

    • American girls are better than nobody. I don’t know what your problem with Chinese mainland girls is. Crazy? Yes. Bad? No.

    • I was just in Taiwan and the girls there didn’t seem that hot and they really dressed like slobs.

    • Andy

      Sorry but that is not true. American girls are demonic behemoths with filthy souls. They are as good as elephant dung. As a matter of fact, they are generally stupid while suffering from a severe case of psychosis. Of course not all of them are like this but the vast majority are. Don’t try to turn coal into diamonds because it simply didn’t work.

    • El Matador

      American men are conversely to the American woman, the best deal a woman can get , anywhere in the world. In terms of being respectful, tactful, helpful, a team player, fulfilling his role as provider,honor driven, least likely to cheat(and reproduce outside), they are from a woman’s perspective the best option. I know men all around the world and their esteem of women is much lower than Americans. I like American guys as friends, loyal and giving they are. American women make me want to shove another Jenny Craig candybar in their mouths as they interrupt with their opinion that they learned on TV.

  • Jacques

    Boris,

    Of all the things in your reply, the issue that I feel I hadn’t considered is the notion of a governmental return to the gold standard. I will certainly do some thinking on that.

    I don’t foresee a Mad Max scenario. What I think is a more plausible worst-case scenario is a Depression-era collapse. If there is still the rule of law I think one’s skills and connections will be infinitely more valuable than any commodity. If we’re fighting off cannibals a la “the Road,” clearly my beliefs are bullshit. But I’ll make money in good markets and bad by knowing how to do shit other people can’t do and knowing enough people who need it. And if it ain’t money I’m earning, it will be something useful to me, and I can’t eat no krugerrand. (Yes, I see the obvious retort of “krugerrands can be exchanged for goods and services.” I just wanted to end on a funny note)

    As far as gold’s price now, I respectfully disagree. How high the price has gotten in the past is no indicator of how the world will value it in the future. All I know is a 600% run as you state, coupled with the fact that G. Gordon Liddy is on TV shilling it as an investment to the Fox News crowd (this is but one example of the mass marketing of gold as an investment) leads me to believe that currently it is overvalued. To your readers, who may not have significant (or any) holdings in foreign currency it does not matter whether you value gold against the dollar or any other currency – one way or the other they’re going to have to leave the dollar and that will cost based on the dollar’s weakness.

    As for self management and diversification, I agree that the shotgun approach is not good. When I say “as many as you can comfortably manage,” I mean no one person will be able to adequately monitor more than, say, a dozen investments. Maybe I’m an idiot, but that’s how far I can go and not lose my day. It is plenty easy to diversify with only that many irons in the fire, and you can’t disagree that, though there have been good years and bad, the stock exchange has maintained a healthy growth rate over a century of turmoil. Two world wars, a Great Depression, several bubbles, etc., and folks who slugged away regularly have seen the market (on average) grow about 8-10% per annum. There will be good years and bad, but capitalism works.

    Cheers,

    Jacques

    • I can’t see how you can say “skills and connections will be infinitely more valuable than any commodity”. What about food? Water? Energy? In a modern world most highly valued “skills” involve transforming some “commodity” into something else more valuable. I can assure you that the guy who knows how to build houses from sticks and mud and has lots of friends is not going to be “infinitely more valuable” than “any commodity”.

      The issue is not really “how high gold has gone” but rather “how low the dollar has fallen”. As I mentioned a good way to see this is by pricing things in gold over various time periods. I never suggested that gold’s historical high is a indicator of the future, I was merely pointing out that gold is not really at an all time high – there has just been a shit load of inflation already. Real returns are what matters not nominal returns.

      8-10% per anum is not going to cut it. In a real sense you will be losing money at that rate if you aren’t already. The precedent is already there, in the 80′s we had double digit interest rates and we are in MUCH worse shape today.

      It is a plain and simple fact that until they stop printing money prices will continue to go up and purchasing power will go down. That’s just how it is. People need to recognize this.

    • Jacques, money talks. If the dollar collapses, you need to cover your ass by having something that has real exchangeable value. I have personally bought over $100,000 of gold and silver this year and I am very glad to have that peace of mind. In the history of human civilization, gold has always had value and unless someone invents real alchemy it always will. Silver has real industrial value as well. Look at past examples of capitalist empires like the Spanish, British and Dutch, and you find that when financial services as a percentage of GDP gets up around 35%, empires crumble. We are getting there; America doesn’t really build anything anymore. Comparing our situation today to American history is an incomplete method, I urge you to look at human history. The US, with its shitty education, terrible monetary policy, crippling debt, and predatory business leaders is not guaranteed to be on top forever. If our T-bills are downgraded, if oil is no longer priced in dollars, or the Chinese float the Yuan, we are fucked. It says something that when I had drinks with Jim Rogers the other day, an extremely smart and rich dude, the first thing he told me was to get some gold. Maybe I’m wrong, but do you really think I’m so wrong that you don’t want 10% in metals just in case, just in case you need to start a new life somewhere and your dollars are useless? Look at this chart of the yen vs the dollar and you’ll get an idea of what printing money is doing to your so-called safe 8-10% yield.
      http://www.x-convert.com/chart/USD-JPY?period=10y

      • Charlie is 100% right.

        Don’t just look at the Yen… the Yen is just another shitty fiat currency too, it’s just that the Japanese still have an economy that makes stuff. Japan and many other countries have a vested interest in devaluing their currency right along side the USD because they actually make stuff and they count on the US to buy it. As I said above, the world’s currencies are engaged in a race to the bottom… the USD is winning.

        Check out these others:

        CHF: http://www.x-convert.com/chart/USD-CHF?period=10y – the dollar is around 50% of what it was 10 years ago against the CHF.

        CAD: http://www.x-convert.com/chart/USD-CAD?period=10y – well over 30% down.

        AUD: http://www.x-convert.com/chart/USD-?period=10y – not sure why that chart is so shitty but that is well over 1.50 down to below 1… another 30% plus.

        NOK: http://www.x-convert.com/chart/USD-NOK?period=10y – another spectacular drop of over 30%.

        CNY: http://www.x-convert.com/chart/USD-CNY?period=10y – this isn’t even free floating, these have been controlled moves by the Chinese government.

        Now how does your 8-10% yield look? These are HUGE chunks of your purchasing power. These aren’t normal “fluctuations”, this is the collapse of an empire. I can’t say I’m sad about it either. People are getting what they deserve. The US is not that much different from Greece. For decades fat, lazy, stupid Americans have elected scheister politicians that have promised them a free lunch. Those “free lunches” were all purchased with the printing press. The bill is due now and it ain’t pretty. When they weren’t voting for free lunches they were asking the government to rob Peter to pay Paul. For years I tried to argue with friends and family against voting for the next asshole that promised to fix everything by spending a bunch more money via debt and the printing press while doing nothing to balance the budget. Eventually I gave up, cashed out and moved abroad. Now I am having the last laugh. I feel sorry for the minority that did not vote for this, but we live in a democracy. The majority asked for this, now they’re getting it and they deserve it.

        Last but not least I agree with you, capitalism does work! However the US doesn’t have capitalism, the US has a corrupt regulatory democracy heavily skewed in the favor of big government and big business. The regulations and rules that are supposed to protect us in theory in practice only create an impenetrable moat around the existing mega corporations. How much good does the SECs phone book sized legal code do in preventing rampant Wall St. fraud?

  • Jacques

    Boris,

    I think putting money in gold right now (and yes, I mean actual krugerrands or eagles or whatever your pleasure) is chasing the dragon. So much panic has run the price up too high for my liking. I think it is also important to remember that from early times on, gold was valuable because powerful people who held useful commodities and had the muscle to protect them, such as kings, liked it and thought it was beautiful. I cannot imagine in a time of economic collapse, which you predict, that the average single dude could find much use for his gold. I’m not interested in being a vassal.

    If worldwide economic collapse occurs, I don’t think it will matter how well you timed your exit from the stock market. I think it matters much more how many meaningful human relationships you have nurtured wherever you are and how many useful skills you bring to the table. People will always feed you if you can fix something for them that they can’t fix themselves.

    More on point for the article, though, if I had written it I would say “use a self-directed investment service, focusing on as diverse a selection of investments you can comfortably manage. Do not worry about the coming crash – you are too small to fight it meaningfully. We crawled out of the Great Depression. Yes, it sucked, but those who kept the faith in capitalism came out pretty well.” After all, Coca-Cola is still here. IBM is still here.

    My two cents,

    Jacques

    • Hi Jacques,

      I will respond above point by point…

      I think putting money in gold right now (and yes, I mean actual krugerrands or eagles or whatever your pleasure) is chasing the dragon. So much panic has run the price up too high for my liking. I think it is also important to remember that from early times on, gold was valuable because powerful people who held useful commodities and had the muscle to protect them, such as kings, liked it and thought it was beautiful. I cannot imagine in a time of economic collapse, which you predict, that the average single dude could find much use for his gold. I’m not interested in being a vassal.

      Gold is not anywhere near a bubble, a mania or anything else of that nature. I explained why above but let me elaborate further. Gold has not even reached its previous all time high in a real sense yet. Gold has retained its purchasing power quite well, while the dollar has dropped like a stone and continues to do so. You can see that gold only looks absurdly high when priced in dollars – start pricing it in other things and gold begins to look only like an alternative currency that actually retains its purchasing power. You may, or may not be correct, that if the worst case scenario develops, nobody will want gold. We are all hoping and praying it doesn’t get that bad. Gold certainly did not lose all of its value during the great depression. I disagree with your premise that gold only had value because kings liked it and thought it was beautiful. Gold was an excellent and convenient medium of exchange (and still is, perhaps even more so now that we have the technology and general wherewithal to price things down to the micro gram) while bartering is extremely inconvenient and inconvenient. I find it highly unlikely that the entire world will revert to the barter system for any meaningful time period. A reason gold makes an excellent currency that I neglected to mention above is that there is basically a finite supply of it. It’s true they are stilling mining it out of the ground as we speak but the supply is expanding extremely slowly (and always will do so) – much more slowly than governments expand their fiat supplies. I also forgot another great point for gold: what if one or more governments attempt to return to partial or full gold backing? This is not that far fetched, it is a strategy that may be tried to save a failing currency(ies). If the US were to return to gold backing the price would be over $6,000 per ounce. Last but not least, do you have any idea how few people actually own physical gold? The number is tiny, there is no way a mania has even begun to start. There should be no concern for that until some significant percentage of the regular everyday population owns some physical gold, even if it is just a fraction of an ounce.

      If worldwide economic collapse occurs, I don’t think it will matter how well you timed your exit from the stock market. I think it matters much more how many meaningful human relationships you have nurtured wherever you are and how many useful skills you bring to the table. People will always feed you if you can fix something for them that they can’t fix themselves.

      I find this to be a particularly absurd statement. Suppose you purchased gold circa 2000… you are up 600% now while people that held their money in dollars (cash) have lost out hugely. Now suppose you really believe in the mad max scenario… let’s say you build yourself some kind of compound… you stock it with food, ammo, guns, diesel fuel, generators and a stripper pole. Now lets say the Mad Max scenario develops… who is going to fare better? The guy with the resources or the guy that is depending on his kindness and good looks. Just because a situation may develop whereby you loose your ass and it is all for naught doesn’t mean you shouldn’t even try to do something. That said, if you are from the camp that really believes that the worst case scenario will develop, it wont hurt you to learn some survival skills too.

      More on point for the article, though, if I had written it I would say “use a self-directed investment service, focusing on as diverse a selection of investments you can comfortably manage. Do not worry about the coming crash – you are too small to fight it meaningfully. We crawled out of the Great Depression. Yes, it sucked, but those who kept the faith in capitalism came out pretty well.” After all, Coca-Cola is still here. IBM is still here.

      I totally disagree… Doc Z perhaps got something right… if you want to be rich do what rich people do. Many of the richest mega rich got there by being smart enough to recognize trends and beating the rest of the pack to the party. Or maybe they specialize in one particularly type of investment or strategy. They don’t use the… “well if I throw 50 darts one is sure to hit the bull’s eye” strategy which is really what the diversification strategy is. Examples? Warren Buffet (value investing), Bill Gross (bonds), Jim Rogers, Peter Schiff, Marc Faber (identifying trends, ignoring the naysayers and going with their instincts), etc. I am on the team of the guys that saw this shit coming and sounded the alarm bells in advance. You and Doc Z are on the team that caused the collapse in the first place. Are you sure you don’t want to reevaluate?

      Perhaps I need to write a followup article… I thought it would be understood that of course if the Mad Max scenario develops, you may not be able to do much with your gold. However, I thought most of the readers would be able to figure out for themselves that part of this whole is situation is becoming more aware of geopolitical events, world politics, the economy, etc. and perhaps making the call to dump the gold at some point (if it gets really bad) and start going for food, guns, ammo, etc. I expected this to be understood and implied but it seems like I’m getting multiple comments that are boiling down to: “gold sucks, it can’t really be used for anything and if you are really worried about all this then you should buy canned soup and guns and hide in your basement”. There may or may not come a time for that but that time is certainly not now. Now is the time for precious metals and commodities. To put it in real simple layman’s terms: think about what would have value in a world without paper currency… got that? Go buy a lot of that. If things really look like they are going to collapse sell that stuff and still buy things that you still think will have value but that you can store and stockpile easily – trade your investments in for that!

  • WALKER

    Boris,it’s a great article.

    Can Dr.Z tell me a few funds that hold 12% return yearly? If there is 8% return without much risk, I will be very happy.

    Is DR. means a doctor degree in English?
    I have been a gold bug for 6 years. I thought I invested correctly which I was very proud of.
    When someone holds a Dr. degree say no to my investment thinking, it confuses me.

    I think that moving out of USA is a bad idea. America is bad, but it is a better place to live than many countries. All the nations that everyone mentioned or traveled are no better than the U.S.

    • Can Dr.Z tell me a few funds that hold 12% return yearly? If there is 8% return without much risk, I will be very happy.

      No he can’t, past returns do not predict future returns. If a situation develops where it is easy to find funds that are always returning 12% average its going to be inflation driven.

      I think that moving out of USA is a bad idea. America is bad, but it is a better place to live than many countries. All the nations that everyone mentioned or traveled are no better than the U.S.

      Don’t knock it till you try it, I have been gone for years and have never regretted it for a second. My quality of life is WAYYYYYYY better abroad. For the time being having a US passport is nice… but I’d rather have Swiss, New Zealand, Australia, Canada, etc. but the passport is definitely the only perk I’m seeing.

  • Dr. Zoidberg

    Awful advice. Gold is crap. When economies fail, people barter goods and services, not use gold. You’d be better investing in cases of condensed soup and bullets. Commodities are completely unstable and also terrible.

    If you are a younger and single guy, all you have to do is make a budget, get out of debt ASAP and continually invest 10% of your income in IRAs holding mutual funds averaging at least 12% (being young and single you can be riskier and find something averaging higher). Then don’t touch it, sit back and wait. You’ll be a millionaire by 40.

    • Doc Z is clear example of someone that just “doesn’t get it”. While his advice on adding a few soup cans and bullets to your portfolio should the absolute worst possible scenario materialize isn’t too far off the mark, the rest of his advice is full retard. There are so many things wrong with it, but let’s take some of the obvious ones.

      1.) Not everybody can pick funds that yield a long term average of 12%, in fact historically it’s been pretty difficult to do. In the coming future it may be easy to do if you want to talk about nominal returns but what you want and need are real returns!

      2.) IRAs are the last thing you want to fuck with. IRAs will be a perfect target for the government to pillage or otherwise tax the hell out of as it becomes more and more desperate. Countries in Europe already set the precedent for pillaging private retirement accounts to satisfy public debts.

      3.) How does that 12% look compared to this chart of the 1 year performance of commodities, especially noting the ones that are of the basic necessity type such as energy and food? It seems to me like the dollar made a net loss of 13.2% meaning that if you did find your 12% yielding fund you lost 1.2% for the year. Nice investment huh?

      4.) If the dollar still even exists by the time you turn 40 (assuming you are young now) that million dollars, if you manage to make it, will not be worth much.

      Seriously Doc Z is giving exactly the kind of advice you want to avoid like the plague. He is either completely stupid, a troll or he sells funds himself.

      • Dr. Zoidberg

        Don’t sell them, just know how to safely invest. Finding a fund that makes 12% in the long run is not all hard. A little homework and you are set (this also implies, as the article actually gets right, NEVER trust your money to a third party). Inflation has traditionally risen at 8% and although it may be a little higher in the coming years, there is no reason to believe that it won’t level and sink again.

        Moreover, your entire premise is completely wrong. Your doom and gloom predicition of the U.S. economy sounds like the ramblings of a cave bunker militia man and so is your investment strategy. You have picked the most unstable investments ever. People following that advice are just going to sink the economy more. If it all collapses like you predict, it is not going to matter anyhow. We’ll be bartering, not using gold and silver.

        However, some people are making money. Do the slightest bit of homework and research how rich people invest their money. I’m not talking traders, look at millionaire professionals in your average non market professions. You want to get women, you do what dudes who get women do. You want to be rich, you do what rich people do. Your plan is not what rich people do.

        • Our opinion is not to trust this nutcase, he apparently has zero grasp on reality.

          Particularly amusing is this statement: “this also implies, as the article actually gets right, NEVER trust your money to a third party” – he then suggests you give all your money to a fund manager… lol.

          Those that invested in gold about 10 years ago are up over 600%… how are those dot.com stocks and second homes doing for you these days?

          Note how this guy follows exactly the prototype I described above, attacking me as crazy and failing to present an even remotely logical argument as to why the future I described above is not plausible or likely.

          This guy is not worth engaging, as I said before, he is either an idiot, a troll, a mutual fund salesman or some combination thereof.

        • This guy has to be a troll.

Leave a Comment