Preparedness 101 - #3

A reader asked the following question:

What are your thoughts on buying gold? (From a source such as Goldline.) I've read that it can be confiscated by the federal gov't in the event of an emergency, and I'm not even sure how useful it would be in an emergency, but in the interest of preparedness, I thought I would ask. Any thoughts?

I'll have to preface this by pointing out that my husband and I are considered low-income, so doing something like buying gold is a nice fantasy for us but unlikely to ever happen.

I'll also add a codicil: I AM NOT A FINANCIAL EXPERT. If someone takes action based on my words and then loses a bunch of money, don't come whining to me that I ruined your life. If your responsibility to act in accordance with your own ethics and beliefs. (This disclaimer is known as "covering fanny.")

That said, here are my thoughts. If you have any significant amount of money in the bank, I wouldn't keep it there. We have three bank accounts (we have a home business so multiple bank accounts just seem to "happen") with three different banks, and all three banks are considered "vulnerable" or close to failing by Weiss Research. Since we live in a deeply rural location, we're somewhat forced to bank locally, so we just have to take our chances. But if we had any money to save, this would not engender us with confidence in the banking industry.

Additionally, inflation eats away at the value of any saved money. Therefore I'm of the belief that investment in hard assets - guns, gold, preparedness supplies, that kind of thing - is a wiser course of action.

When our daughters were babies, I remember noting that gold was $200 an ounce. That was ten or twelve years ago. Gold has ballooned to $1200/ounce. Sheesh, that would have been a super-dooper investment opportunity! Pity we were poor as church mice back then. (Um, still are. Oh well.)

But we've often discussed how we would buy gold, should the money be available.

I do NOT suggest you buy gold through an online source. I would say, arm yourself with cash. Park a couple blocks away. Walk into a reputable gold dealer. Buy gold krugerands or maple leafs. With cash. Don't give names or addresses or phone numbers. Be utterly and completely anonymous. If the gold dealer "needs" your contact info for whatever reason before completing the transaction, then you don't "need" to buy gold from him. Savvy?

In other words, the government cannot confiscate what it doesn't know you have.

Now if you don't have the cash to buy gold, I've heard silver is a good investment as well. Better, how about a bucket of beans? Rice? Oatmeal? Whatever the value of gold or silver, you can't eat it. That's why we've decided to take whatever surplus (ha) cash we have and invest in things like canning jars or a few extra bottles of shampoo.

Just my $0.02. Or $1200/ounce, depending on your point of view.