Friday, September 21, 2012

Booze, Bullets, Currency or Metals

There has been some constructive debate here on Cappy Cap as to what to invest in given the poor economic outlook for the future.  You don't invest in education because, well, who is going to hire you.  You don't invest in fixed assets, because, well, they'll be taxed away or just outright confiscated.  You certainly don't invest in a retirement plan, not just because stocks are historically overvalued, but there is also a significant chance the government will either rescind the tax benefits of those retirement plans OR just outright confiscate them ala Argentina and Bolivia.

So what do you do with a worthless piece of paper with Ben Franklin's face on it?

Well, there are so far four options:


Discuss and resolve which is the best.

On a side note, it was very economically and mentally rewarding converting a worthless piece of paper (with the additional dilution of Mr. Bernanke's recent actions) into a tangible good that can be used later.  You almost feel guilty handing the paper over to some "sucker" willing to part with that tangible good for your piece of paper.

Oh well, enjoy the decline!

28 comments:

Liberista said...

cant see a difference between that funny paper in the center and the one top right.
the item top left, i wouldt bother "investing in it", i would instead invest in the tools to produce it. booze can be produced cheaply and easily.
as per the two items below, i can only recommend them.

sth_txs said...

John Williams, from Shadowstats, has recommended a box of hard liquor as a commodity. He did not say fill a room, but that could be useful.

Also, maybe some Tide, depending upon your local area?
http://www.npr.org/blogs/money/2012/03/12/148448368/people-are-stealing-lots-of-tide-detergent

Carnivore said...

Cover yourself first. Good idea to have some cash (Bernanke Bucks) on hand in case a bank holiday is declared. Have some canned food and bottled water on hand. Stock up on toilet paper.

After that, I'm not too keen on currency as an investment since pretty much every nation is in trouble these days.

Investing in booze, ammo, gold & silver coins are all good ideas. Tobacco and cigarettes are another good choice. Don't smoke so can't say what the shelf life is like.

John Hay said...

Man, it really hits home saying that other gens didnt leave yea a choice. Its so true. vote for silver bullets

El Borak said...

One certainly ought to exclude currencies, if not entirely then mostly. All other paper currencies have the same problems as the USD, and some have them worse. The coming death of the Euro as it currently exists will create even more currencies. Good for currency trading, perhaps, but not for savings.

Of the others, this is not an either/or proposition. It is certainly possible and even wise to invest in the three remaining categories in various amounts. While one person makes the argument that he cannot drink gold, another points out rightly that it's tough to sneak over a border to safety carrying $100k worth of whiskey. Your circumstances will dictate which is better to have.

There is no "correct" investment, though most goldbugs will argue that it is one thing while their opponents will argue it is another thing. The fact is that there are only investments that are more correct than others under certain circumstances. Correctly predict or at least account for your future circumstances, and you'll know what to invest in.

Cogitans Iuvenis said...

I dunno about that other bit of foreign paper.

Anonymous said...

precious metals, ammo, food, and productive assets like tools. Have a little foreign currency but don't trust foreign govts any more than I trust the US to maintain their currency's value.

savecapitalism said...

I'd keep only small holdings of foreign currency, because Mad Bennie isn't the only one with a printing press.

The other three, you probably can't go wrong with. Booze and bullets will keep their value, gold&silver is in my opinion still undervalued which means they will increase their purchasing power.

I go for the shiny stuff ;)

Anonymous said...

If it's going to get so bad that we need to have a discussion like this, then I'd say people should get themselves a little parcel of land in the country.

For me personally, nothing says 'enjoy the decline' like a well stocked wine cellar.

Anonymous said...

I would vote for booze and bullets. Other currency might lose value. I've never really understood gold. How do you buy a small item with a bar of gold? But, lead bullets will always be needed, as will booze.

Ras Al Ghul said...

I need that poster for my office.

You know where I stand on this . . . go with the B's: booze, bullets, beans and bandages.

Regarding your remarks about the portability of the booze, you're right, but consider an upgrade (which is currently illegal in the united states so just be ready to make one post collpase): The still.

Making barter is better than just having it

Theophilus said...

Foreign land and bullets to defend it with. And some gold, I guess.

Anonymous said...

You don't necessarily buy gold because it's useful for bartering during a collapse. You buy gold so that afterward, when society picks itself up again, you can trade it for whatever the new stable currency is and be the only guy on the block with money.

So gold makes sense if you believe there is going to be several years of economic turmoil and hyper-inflation followed by a return to normalcy. It basically lets you transfer wealth from the old system to the new system while everyone else goes broke.

But if you're more worried about total societal collapse then a stockpile of useful weapons, tools and hard to manufacture goods will make you king of the wasteland and lord of the local bartering market.

Ed said...

Unlimited QE is in place now Capt.

What is creepy: Is a piece of paper with a picture Mao Tse-tung really valuable?

Or a piece of paper from a continent where people have to give up their children because they cannot feed them (Greece)

The dollar is expected to fall in relation to these toilet papers?

Better buy tangible assets to survive.

Cogitans Iuvenis said...

Actually you could add in pennies and nickles. In the event of a complet societal collapse, which I am still skeptical of, the copper in those coins would be quite valuable.

the dude said...

Booze is not difficult, though I would probably get a few handles of everclear (that shit'll stretch). Just strain some fruit, a little water, sugar, and yeast, go about business for a few weeks, and presto! Poor man's booze. Those first weeks are rough, but if you do the batches big enough you'll have a continuous stream afterwords.

I'm more w/ Anon who said get some land in the country. A little farming couldn't hurt (though you'll need bullets for the surviving city folk and people like me).

Plus, y'know, bartering and what not.

Anonymous said...

My choice: Metal and more metal (i.e. bullets). Just by knowing where things are headed (unlike the remnant 90-99% of the population) I have a huge edge. Just to understand this, made me contemplate the looming chaos with expectation. I know I will score big time.

Lib Arts Major Making $31k/yr at an Office Job said...

Sound Investments in order of importance:

- Ruger 10/22 with some 25 round magazines / accessories / scope
- Remington 870 12 or 20 Gauge Pump with accessories
- A Revolver in .357 Mag or .44 Mag
- An AR-15 pattern Assault Rifle configured to preference
- Lastly, whatever 9mm or 45 semi-auto pistol you want. No choice will prevent you getting laughed at by some internet gun snob who thinks his CZ / 1911 / HnK / whatever is superior.

Note: You can sub the last two for a Mosin-Nagant (or ten of them!) if you don't feel like spending the money on a high priced AR / Pistol. Bayonet attachment is a plus.

Herb Nowell said...

I'm with Liberista on booze: learn to make your own. It's not hard. It just takes patience and willing to get the details right, which sounds like a Cappy Cap reader trait pair.

For metals, I'd take older silver dimes over gold. Had to make change on gold coins but not silver dimes.

I also agree with Carnivore: I'm stocking up on TP. I suspect it'll have more barter utility than gold or silver. Canned food and bottled water are the same. Heinlein in one of his surviving nuclear war articles argued canned food would be so valuable you'd have to open them with the windows closed and bury the cans at night so no one knew you had it.

Those knock off MREs are a good choice as well.

Finally, ammo is kind of like booze. Stock up but also learn to reload and have plenty of reloading supplies. Then, remember to police brass, both yours and theirs.

Roberto Severino said...

I think the most viable option for a young person like myself would be to invest in precious metals. Legally, I'm not old enough to buy alcohol but I've heard of people distilling their own booze at home. I don't even know if I'm legally permitted to buy bullets and fiat currency's value is going down the drain obviously with the whole situation in Europe and in America.

Rumbear said...

With bullets......I can get the other three.

Anonymous said...

Seeds and tools.

aerodawg said...

The 3 Bs, beans (or any canned foodstuff), bullets and booze. Any is acceptable, but better all together.

Bullets to protect the stash.
Beans cuz a man has to eat.
Booze for recreation and it makes a damn fine trade good.

Cigarettes/Cigars/Tobacco for trade good is also a fair idea.

Anonymous said...

I am going to mutiny Captain.

Fellers, the Captain here has it that you are being held back by a matriarchy. That is true. Your society may marginalize you and treat you as inferior, as a child - but it doesn't mean ya gotta act like one.

Your mission, men - is to invest in yourselves. People made fortunes during the depression by being in the right place at the right time. They bided their time, marshalled their resources - and bet the wad when the odds and circumstances were in their favour.

Here's where I break with the Captain. Our pussified matriarchy is shaking apart at the seams. Nobody likes it, everybody hates it and nobody is happy. It is going to change or self destruct. You younger men will be in a prime position to take advantage of that.

The boomers are going to fall out of the workforce en masse. They are going to hit the health care and social programs en masse. They have alot of money. They will be downsizing and selling all at once. Opportunity positively abounds! Want a Harley that some old fart can't ride anymore? There will be a ton of them for sale shortly! Want a massive home? The boomers are going to saturate the market soon and you will have your pick at rock bottom prices! There will be massive money to be made caring for them too!

Your way forward is clear: marshall your funds. Save your cash - in a sock if you must. Keep your eyes wide open because if you have money and skills the time will come when you can leverage that for massive gains. Our society, our economy and WE are going to change in a huge way over the next 10 years. Be prepared to take full advantage when God throws you the football.

Good luck boys! Remember - the decline will bottom out...and you must be ready for the recovery!

Anon said...

What turned out to be the most valuable when Zimbabwe went to Hell?

Rachel & Robert said...

I don't know. Therefore diversity remains king.

Chris said...

Cappy, the best investment is in BRAINS. No I do not mean be a zombie. But skills. You can always take practical skills with you. Know how to grow a garden, shoot (hunt) and how to stay well in the wilderness helps. Foraging skills help.

Being really skilled helps... if you have a viable city around you. But for most men, think like a Ranger. You can live off the land and you can farm.

Investments? Arable land, Gold, silver, supplies -- for you and your animals. And remember that there is no such thing as an obsolete weapon: at 50 m a bow is discreet.

Booze and bullets are not investments. They are trade supplies.

PersonofInterest said...

I would agree with food, and seeds for more food. Booze is nice too, but I think I've been hooked on food longer.