The financial commentators that I follow are starting to warn about possible problems with the U.S. dollar. When taking protective measures against this problem, it’s better to be a year too soon than a day too late.
So what can you do to protect yourself? Here are some of my suggestions:
1. Get out of all paper investments denominated in dollars. This includes most investments in the stock market, bonds of various types, and large amounts of dollar currency (over what you might need for six months or so).
2. Invest in hard assets, such as gold and silver coins. You want to take possession of the actual physical product. Be wary of possible counterfeiting.
3. Don’t purchase “paper” gold or silver. This is where some one sells you a gold or silver investment, but retains possession. So all you have is a warehouse receipt or some other piece of paper. These pieces of paper may not have any value. For every identifiable lump of gold or silver in a warehouse somewhere, there probably are a hundred pieces of paper claiming ownership of that same lump. Guess what, 99 people are going to be out of luck.
4. Invest in trading goods, such as food with a long shelf life, cigarettes and liquor, off-the-shelf medications like aspirin and Tylenol, guns and bullets, camping gear, and so on.
5. Stock up on the kinds of things you would need for your own well-being. You don’t want to be caught short if the stores start raising their prices dramatically or run out of inventory.
6. Read up on how bartering works when there is no supply of usable money.
7. Assume that your bank accounts, safe deposit boxes, and any other visible property can be seized by the authorities in an emergency. Make plans accordingly.
8. Get to know your neighbors. See about forming a support group. Everyone can pitch in and provide something for the group.
9. Don’t discuss your preparations with anyone else, not even family or friends (unless you are prepared to take them in and support them, and any of their family or friends that might be tagging along). If the word gets out, you might have to support an entire neighborhood, or just one lucky thief.