Precious Metals and Commodities

As a test investment, I just bought some 1 oz Canadian Silver Maple Leaf coins about a year ago. They are .9999% silver and have a face value of $5 Canadian each. I had planned to buy more in the future, since everyone was talking about metals. Although I agree that metals are a far better investment than the U.S. dollar, I decided to sell them and invest the money in other commodities. When I bought the silver, it was at $16 an ounce, and I sold it at $28 dollars an ounce. Although this would seem to be a good return, it really shows how the dollar is declining. After selling my silver, I took the money and invested it in two other precious metals that I think will be far more valuable in the future: lead, in the form of ammunition, and tin, in the form of canned food. 


Everyone is still talking about metals as an investment, and although they are more portable than commodities like food or ammo, they are only good if you can find someone to buy them from you, or trade them for other goods. You cannot eat silver or use it to defend yourself. Although I still have a few other coins, which I consider to be a last ditch means of trading for goods if I need to relocate after a disaster or dollar crash, I am still investing most of my money in physical food or ammunition. When I say most of my money, I mean it. I no longer feel safe investing in or saving U.S. dollars, therefore I am taking all of my spare money and investing it in some type of physical commodity. I believe that this is a good idea and that it serves two purposes. First, by translating my paycheck into commodities, I am helping to stimulate the economy, which may not save the dollar in the long run, but might give us more time. Secondly, if something happens, I have goods on hand to support myself and my family.


Commodities, for me, include anything I think that I might need to survive the next few years, from batteries to toilet paper. You may not agree that this is a valid form of investment, but prices are rising at a faster rate than the rate of return on most investments. Anything that I buy this year will be more expensive next year, and if I buy next years goods at this years prices now, I automatically make a gain on my investment that is equal to the percentage increase in the price of those goods. Although this strategy may not work for everyone, depending on how much you have to invest, I think that it should be part of everyone's investment plan to some degree.


Once you have all of your goods, you need some place to put them, and you need to secure them. My strategy is to put them underground, but if you can't do that, a locked room, building, or storage container will work. I will do a post on secure storage at some point.  


-Richard