Alternative Investment Ideas

[gfp927z]

>> gold <<

Jim Rickards recommends having 10% of one's investable assets in gold, which seems like a reasonable idea, all things considered. The US debt is parabolic, and the global de-dollarization process is likely to intensify. Saudi Arabia is joining BRICS, so looks like the Petrodollar system will soon be history. For over 40 years the Petrodollar system was critical in maintaining global demand for the US dollar. It allowed the dollar to remain the world's reserve currency after the collapse of Bretton Woods in 1971. So that underpinning for the dollar system will be going, going, gone. In addition, BRICS is rapidly expanding its membership, and is creating their own gold-linked BRICS currency - so another dagger pointed at the heart of the dollar system.

So based on how things are going, having some gold seems only prudent. But having some paid-for real estate and land seem like the best idea imo. Gold has no real 'utility' value, other than as jewelry. It only has a high value because of its historic role as a backing for money. But gold is the enemy of central banks like the Fed, who banned gold ownership in the US from 1933 - 1975. So best not to go too overboard with gold imo.

Silver is an alternative that tends to follow gold's price moves, and also has lots of industrial uses, including in solar panels. Unlike gold, there is no risk of the US govt banning private ownership of silver. So it seems logical to diversify with some silver, in addition to the gold and other hard assets, real estate / land, etc.

Stocks have actually been a great inflation hedge over the long haul, albeit with numerous crashes along the way. I figure it's best to diversify into all of these asset classes. Bonds / fixed income get hurt the most from inflation over long periods, so what seems 'safe' in the short run can actually be the worst overall choice for the long term. But still a lot better than speculating on microcap stocks. Look at what happened to BABYF, down to .19 cents, yikes. I figure that anything in the conservative investing realm is better than going down the microcap trading path again. Even with the discipline of strict position limits, the gunslinging approach is a loser.





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