Unless you have been living under a rock (which may not be a bad idea) you know that we are in the middle of a financial crisis, that looks like it will continue for some time, and may even worsen.
Many people have been turning to Gold, Silver and other precious metals, as well as some other commodities as an investment to hedge against inflation, while others are of the belief in the potential collapse of the U.S. Dollar. These scenarios are possible especially with what looks like a coordinated attack against using the Dollar as the global currency for trade. This is a very complex issue with macro and microeconomic implications throughout the globe and within the United States that I will not be going into here.
What I will get into is should YOU be investing in Gold (from here on, when I mentions gold, I mean any of the precious metals equally)? Now, I am not here to give you direct financial advice, and suggest you seek out a professional if you do choose to invest in gold. With that said, if you are going to use it as a hedge against inflation, or the collapse of the Dollar then you may be on the right track.
Once you are invested in gold however, getting out becomes a bit more tricky, if you’re hedging. Once you sell for currency, especially the Dollar you instantly become hit with the inflationary value of that currency. The thing to do would be to look for which currency is strong, and sell for those currencies, and use those to make your purchases. This is where it becomes more complex, but not impossible for the average person.
The people with a disadvantage here are the ones who have chosen to purchase and hold the gold themselves. It is harder for you to trade for currencies outside of your own country in this case. Plus you have to secure and carry it, which becomes burdensome especially if you have a larger amount.
There are places that will hold your gold for you, and though they charge a premium if you are using it to hedge, and you do it right this should not be an issue to you. They also make it much easier to liquidate into other stronger currencies.
I know there are people out there buying gold and holding it themselves for a SHTF scenario, which I am not 100 percent against. But from a survival point of view, you can eat gold (well you can, it is non-toxic, but it provide zero nutritional value).
If you are looking for an area that can help you prepare, plus be a good investment in a scenario that causes a complete collapse I would suggest you invest in food, and other items that you can barter easily. Sure you can barter and buy with gold, but if you are hungry what would you value more, a five pound bag of rice, or one ounce of gold?
Now I am not saying gold does not have its investment place, I am just trying to get you to see a different point of view. With inflation already rearing its ugly head, food and goods prices have already started to go up, while the dollar creeps lower.
For me, when it comes to a preparedness situation, I’ll take food over gold any day. Plus, I’d be happy to give you some food for yours.