Saturday, July 7, 2012

Like a duck on a gold bug

Gold surged briefly in the middle of the week, but it's back down again now. In case you are new to this site and haven't heard me rail about the stupidity of buying gold, here goes.

Gold is a commodity, its price is set by a relative handful of traders. At $1600/oz it's less than its peak in the early 80s when adjusted for inflation. The $800 price then, would need to be $2400 now. If you bought gold during that frenzy and held onto it, you have lost money. Even if you bought gold at $400 a few years ago, inflation will eventually consume any profit, even if the price doesn't plunge as it did in the 80s.

Okay, if you have more money than you know what to do with and it makes you feel good, like buying a sports car, have at it. A safe room under your house would probably be a better investment in security, and it won't lose value from inflation. If you can't afford that, consider canned goods, you can't eat gold, and if things are that bad, nobody will sell you food. Maybe they would trade for ammunition, or vice versa.

As for the fancy freeze dried survival food, I understand it tastes worse than 50 year old canned goods. Any can that isn't leaking or swollen is safe to eat in a pinch. The one selling point that the dry food people make is that you can carry a month's food in a back pack. Don't forget a month's supply of water in your canteen. They want an awful lot of money to insure against a scenario you really want to avoid, going hiking with all your food.

Right wingers like to tell me how they hunt (me like real man) so they can live off the land. Along with all the other millions. Game becomes scarce after the first morning of hunting season, with everybody hungry they will be hunting one another after a few days. Knowing what weeds you can eat, and how to find edible roots will get you a lot further. Probably a good idea to wait for the hunters to eat each other before going out. They will eat the dried food back packers first.

It's almost impossible to have a scenario where there is no food. More likely it will just be hard to get, and expensive. Those canned goods will seem like an excellent investment then.