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Economics & Investing For Preppers

Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on becoming rare wristwatch pickers.

Precious Metals:

Hedge Funds Sell Gold, Silver As Turmoil Hits Equity Markets

o  o  o

Gary Tanashian: Silver In Position To Lead Gold


Record $23 Billion Flees World’s Largest ETF



Bitcoin Daily Chart Alert – Price Recovery Continues (Feb. 12th)



The IRS Takes Its Tax Evasion Hunt to the Blockchain

Economy and Finance:

After racking up more than $950 million in debt, gun-making … Continue reading

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Investing for a Financial Collapse


Many people are talking about a financial collapse these days; not just preppers, however the population in general. We hear from billionaire investors, economists, politicians and average folks on the street that the economy can’t handle much more, before going over the edge.

If you look at past financial collapses, there are many signs that we have one coming. In fact, according to some of those signs, we’re overdue for it. Apparently something is still holding up the U.S. economy and if that “thing” ever gets removed, we’re going to be on a fast elevator ride, heading for the financial basement.

There’s no way of knowing precisely when this monetary collapse is going to come, however we can be pretty sure that it’ll come. The actual timing depends upon several factors, with some people attempting to make it happen and others attempting to stop it from happening. Part of the matter is that different folks disagree on what will ultimately cause it, with totally different schools of economic theory claiming that the restorative measures of another theory being exactly what will put us over the edge.

One issue is evident, the economy can’t continue going as it is, without some type of negative consequences. Government spending is out of control; banks and the stock market are being pampered by national policy; the government is lying to us regarding the financial figures it releases; and less folks are working today than have been working anytime in living memory.

What Will the Collapse Look Like?

Without getting in a lot of detail regarding how financial collapses happen and the intricate money maneuvering that is a part of it, there are two basic signs we need to be searching for. The first is a rise in unemployment; not the figure the government is handing out, which shows unemployment dropping, however real unemployment. During The Great Depression, actual unemployment was at about twenty five percent.

The other sign is runaway inflation. Once again, the govt is lying to us regarding the inflation rate. They’ve been saying that we have had an average 1.5% inflation rate for the last five years. However, this is leaving out anything that’s rising at a higher rate, specifically food and energy. While gas costs have dropped recently, that’s a temporary situation, brought about by a price war that the Saudis are running to regain dominance in oil production.

Actual inflation has been regarding eight percent per year. While that isn’t enough by any means to make a financial collapse, it’s undoubtedly worse than the 1.5% the government has been telling us. In the Argentinean collapse, they’d over 1,500% inflation in 2 years! There was one month in which inflation hit two hundredth percent.

Investing to Survive the Collapse

Between high unemployment and high inflation, the idea of “investing” could seem a little crazy. After all, we’re going to need money to survive on, so setting it aside in investments seems like a waste of money that’s needed for different things. But the fact is that investing your money wisely might be what makes it possible for you to survive the collapse, when others are suffering.

I hope you understand that I’m not talking about typical investment here. This isn’t buying stocks, putting cash into real estate or maybe investing in a municipal fund. No, this is investing in your future, in ways that a financial collapse won’t damage, but indeed will increase your chances of survival. In some cases, it’d even make it possible for you to profit somewhat by the collapse.

Precious Metals

When the value of cash goes down, the value of gold and silver always go up. So, you’ll most likely see the price of gold and silver skyrocket. It may conceivably rise quick enough that you may sell off that precious metal and pay off your mortgage. That would provide your family much more security.

When the collapse ends, regarding the only issue that will retain real value is precious metals. So, if you hold onto it through the collapse and into the recovery, the actual value of those precious metals will be as if you had control onto the money, but adjusted for inflation. If inflation goes up 1,000 percent, the value of gold and silver can go up at least that much.

Your Home

Speaking of paying off your home, if you can pay off your home before the collapse, you won’t have to worry regarding having your home taken away from you during the collapse. During both The Great Depression and the Argentinean collapse, several lost their homes when they couldn’t make payments. If yours is paid off, that can’t happen to you.

Food and other Essential Supplies

Personally, this is what I consider to be the simplest possible investment. Food always goes up in value. I mentioned at the beginning of this article that food has gone up eight percent each year over the last several years. Well, if you had taken money out of the bank and bought food with it five years ago, that investment would have increased in value a lot of quicker than the interest the bank is paying you. It would have been a much better investment.

I understand that investing in food doesn’t seem much like an investment. That’s really just because we’re not used to thinking of it that manner. However, the results show it to be a very effective investment. That’s what matters.

A Repair Business

When the collapse happens, folks won’t be ready to replace things that stop working. They won’t be buying new cars, new lawn mowers or new toasters. Instead, they’ll try to repair what they have or they’ll do without. being able to repair anything will create a chance for business, in a time when others are losing their jobs.

In addition to the tools and training for the business, put in as good a stock of common repair parts as you can. The cost of those components will skyrocket and in some cases they will no longer be available. Any parts you buy today will be ready to be sold at the inflated prices, making them a good investment.

Barter Goods

When financial systems collapse, it’s common for people to return to bartering; either individually or in tiny groups. Anything that you need to survive will be helpful as trade goods as well. Folks will be willing to trade what they have, for what you have.

During WW II, several farmers in occupied Europe became wealthy through barter. The people from the town would go out to the farms, “visiting family,” with their suitcases packed full of silver and different valuables. Farmers were glad to trade hams, cheese, salami and butter for these valuable items. when the war was over and things returned to normal, those farmers were ready to sell off their acquisitions for a good profit.

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A Doomsday Prepper’s Guide to Personal Finance


For Richard Duarte, surviving the end-of-the-world-as-you-know-it isn’t just a possibility; he’s lived it. In 1992, he and his family fled their home in South Florida with only the clothes on their back, after Hurricane Andrew swept through and destroyed their house. Half an hour after the storm passed, and long before rescue or cleanup teams arrived, looters entered his neighborhood. 

“Your whole world is turned upside down,” says Duarte, an attorney and author of two survival books, including his newest one. “Living in Florida, I knew Andrew wouldn’t be the last disaster, so I’ve done a lot of research since to find out what the average person can do.” 

When you think “Doomsday preppers,” you may think of survivalists building underground bunkers, stocking up on a several years’ worth of food, or arming themselves against marauding mobs. And some certainly are doing that. But “prepping” takes a variety of forms and being prepared for a worst-case scenario isn’t as out there as it may seem to some. Whether it’s a natural disaster, terrorist attack, or pandemic — or the loss of a job, or the death or disability of the family breadwinner — you aren’t likely to regret time spent on basic preparation. 

Get Organized 

“Legal and financial preparations are probably the most neglected,” says Duarte, a Miami-based attorney. “People are busy with their lives they’ve got a million things going on,” he says, and essential tasks are often neglected. He explains that every crisis or disaster is also followed by a rebuilding and reconstruction phase. “If you go through an event like I did where the house is blown away, you won’t have the access to those documents,” he says.

Organize your documents into three categories: 

  • crucial
  • important
  • nice to have 

Crucial, for example, would include your will, power of attorney and the title to your home or car, for example. Start there and make copies. It’s also a good idea to back those up digitally, either on a removable hard drive or flash drive. Then make sure the originals are stored in a separate, safe place, such as a safe deposit box. 

Duarte has also been a victim of identity theft — it took him a year to straighten out — so he’s especially conscious of the need for being organized financially. He also advocates the use of strong passwords to help reduce the risk of ID theft. 

Stash Some Cash 

Keeping some cash on hand can be helpful. “One of the biggest vulnerabilities we have as a society is that everything is electric,” he says. “There are very few things that will work if there is a widespread power outage in a large metropolitan area.” ATMs can go down, and store clerks won’t be able to run credit cards. So he recommends keeping some small bills in your purse or wallet in case you need to catch a cab or put gas in the car, for example, and keep some cash at home. 

Many preppers recommend stockpiling gold or silver in case of an economic collapse where currency loses its value. Duarte doesn’t have a problem with owning these precious metals as a way to diversify an investment portfolio, but he is skeptical about their usefulness in day-to-day transactions after a disaster. “Folks can’t eat gold and silver,” he says. 

Remember the Essentials 

Food and water are essential to survival, so having enough on hand to survive a Katrina-like event is wise. The core survival elements, Duarte says, are “food, water, first aid, shelter, self-protection, temperature regulation and sanitation/hygiene and knowing when to stay put and when to get out.” Store at least one month’s worth of emergency supplies if you can, but if you can’t, start with a smaller amount and work your way up. For example, on his blog he recommends spending an additional $10 a week on groceries that store well, and then rotating unused items into the menu periodically so they don’t expire and go to waste. A first aid kit is also a must-have. And you’ll need to think about how you’ll protect yourself in dangerous situations. 

Knowledge Is Invaluable 

Skills can be more valuable than “stuff” in the event of a disaster, Duarte believes. He explains: 

One example is water purification/disinfection. After a disaster it’s not uncommon for water to be contaminated and/or unsafe to drink unless it’s treated. If you purchase a water filter (stuff) and throw it in a closet, you take the risk that the filter may not work, may be damaged or may just plain fail when you need it most. On the other hand there are at least half a dozen ways to disinfect suspect water (skills) if you know how — heat (boiling), chemicals (chlorine bleach, iodine) solar radiation (SODIS), ultraviolet light (UV), etc.  With skills you always have other options, even if the “stuff” fails or you have no “stuff.” 

Another example is first aid and medical. It’s very important to have first aid supplies but it’s even more important to know the proper way to treat a sick or injured person. All the supplies in the world will be of little use if you don’t know how to use them. If you have the skills you can always improvise. Of course it will always be better to have both skills and stuff. 

“Some people will prepare for extreme events yet they won’t prepare for a house fire, or a loss of a job,” he says. “Start with the basics. Start small.”