Until recently, I had been confused on how to invest my savings, in anticipation of future currency inflation. Our family is truly blessed by the Lord and we have a small farm that is our retreat. We have also made stocking up on beans and bullets a regular and routine practice; for which I am very thankful. While these items allow me to sleep at night; especially after reading the news, any extra that we put away will likely be used for charity; and thus I do not feel that these items are an investment and in a true schumer scenario, aside from self-preservation. My guns have some value, however my definition of an investment is something that will gain value or grow wealth over time that is easily tradable. Included in my definition of an investment is something that will gain value with or without a Schumer. At this time, my guns are not something I am looking to trade in the near future unless I am desperate. Buying guns are also a large ticket item and is not something that is easily invested on a monthly or even quarterly basis. Finally, sadly enough with changing gun laws there could be a time when it is difficult to sell firearms at a profit or as an individual.
So for the last several years I was “plum lost” on investing. The stock market is at a fictitious high; like a crack addict standing up on a cliff and looking for his next hit. While I still work for the man and have one of those sucker-you-in matching 401(k) plans, it feels like I am tossing good money down the drain so this is a minimal investment. I have bought gold and silver over the years, not much mind you, not nearly what I would like or should have bought, but I have bought some and I also purchased several hundred dollars in nickels to set aside. But the trick to investing is buying low and selling high and as metals continue to hit new highs, I still occasionally buy metals but feel like I’ve missed the train. Investing is something I’ve enjoyed in the past and I’ve made a few bucks in the stock market but for anyone who understands the historical actions of the market, it is in a strange trance waiting for a break. Any dollar going into the market is a fool’s errand right now.
One of our largest investments has been education. The most important aspect of the equation is preparing my children. We have been homeschooling for several years after a short but unsatisfying stint with the public school system. The best part about homeschooling is that education becomes a way of life and you are constantly considering lessons for your children. Often, while you are trying to give them that next life lesson hoping it just might stick; you find you learn a few new tricks along the way. This weekend was one such lesson, one that I want to share with you as it changed another aspect of my preparations and became a new investment.
As I said; we homeschool so my wife is at home with our children constantly. Understandably, she needs a break every once in a while or she goes loco and so we (the children and I) planned on being out of the house on Saturday. Work has been a drag and uninspiringly I had a zoo outing planned. Fortunately it rained and our last minute decision was to instead head to an auction.
If you do not go to auctions, I would recommend everyone to take a look at AuctionZip.com. Type in your local Zip code and it will give you a monthly calendar with all the auctions in a radius from your home. As you become familiar with the auction houses in your area you will find favorites. Typically I like to check this site as well as the auction house sites to understand the type of auction (estate, farm, antique, etc.). Most auction houses list a majority of the goods and always the best items as bait. Good auction houses post pictures as well and large sales even have previews the day before. Once I decide there is something of value, I try to price the goods I want on line (Craigslist, eBay, etc.) so I know what would be a good economic deal (although on this day, since it was a last minute decision I did not have my usual homework completed). The one danger of an auction is that you can get caught up in the action–an auctioneer’s prized skill. They make their money off commissions and want the highest price possible. On the other side, you can buy coins and metal, old tools, farm animals, equipment, guns (depending upon local laws) and a whole lot more at reasonable prices.
So my children and I headed out for the auction, but since I am with my 9 and 6 year old, there is no urgent rush. We have a lazy breakfast at the local pancake house, hit a church rummage sale (where my daughter dickered for a princess purse but decided a Hannah Montana doll was too pricey), followed it up with a construction company moving sale (where we bought nails by the pail for pennies) and then the auction last. All of these different “stores” teach my children how to evaluate “stuff.” We bargained, dickered and bid for different things throughout the day and only our breakfast was a predetermined price as we relished our off-the-menu blueberry pancakes. It also teaches them the intrinsic value of well made goods versus just being “new.” I could also go into the whole recycling spiel, but we are all fed that diatribe on a regular basis and this audience understands it more deeply than I can write in a one line tangent.
In any case, the last place we stopped was an auction held at (but not by) the National Guard Armory a bit more than an hour drive away. After oohing and ahhing over the tanks out front, we sauntered in during the late afternoon well past the auction’s prime. Our timing was perfect. Most people had left for lunch and there were only a handful of stalwarts out who had already spent quite a bit of money that morning. Auctions are notorious at keeping a handful of good items to hold the crowds interest and this auction was no different but still the interest of the people there was obviously waning. We arrived just before they started on a large batch of coins. My son and I have been investing in metals and I had an idea of the current melt prices. His eyes lit up as we approached the table and he pulled on my sleeve to get into the bidding. Others were better educated than us and so nothing was free, but we got a few things that we knew were worth the greenbacks traded in exchange. There were a series of foreign mint sets that the serious collectors had little interest so I let my boy who is the nine year old do the bidding. I told him what I thought it was worth and if he wanted to pay a premium, he could feel free to do so. He stepped in to bid and kept his eye on the prize, not getting flustered or suckered in and bought a set of pristine Deutschmarks minted in the 1970s. Afterwards, I received more than one compliment on the great job by my boy from the various gentlemen and auctioneers participating in the day’s events. I also talked to a couple of the more knowledgeable coin guys asking why they paid more for certain articles and learned a few new tricks for my next auction. When we checked prices later, we found the same Deutschmark set on eBay sold four to five times more than what we paid. My son was delighted in his trophy.
After making sure my son was doing well, my daughter and I went and bid on some old tools (which were five feet away). The Lord works in mysterious ways as I at that time I was in the middle of reading The Homesteader’s Handbook. Written in the 1930s, he has a section on tools and how to use them. As this is a period piece, all the tools he referenced are now antiques, but it is a great list for vintage hand tools if you are worried about the lights going out. At this lovely auction, I saw for the first time, a hand drill with a chest brace; something I had never even heard of until I read this book. I had a small collection of older tools as I do like tools, but this auction had a good selection of well maintained hand tools from the late 1800s through 1950s. I have a few buggy wrenches that we inherited from my wife’s grandfather and there were plenty of good examples in the auction. My daughter and I won just about every bid (whereupon she would jump up and down excitedly until she just tuckered out and bunkered down with our winnings) on the older tools and only lost if something was lumped together with a power drill or other modern contrivance that I did not want. We made a heavy haul on these older tools as well as some interesting odds and ends like a good conditioned butter churn and a bunch of candles at well less than a nickel each. We evaluated our purchases on E-bay that night and realized that we got a better deal that we thought. If I tried to buy the same tools on eBay I would have easily paid twice or more the amount.
One item we got was an old cedar chest that was no longer useable as a cedar chest. It was still solid but it had a musty smell and was not the prettiest thing to see although at one time it must have been a beauty. Sadly, it was just not restorable as it was covered with a wicker veneer and was missing bits of the trim. We won it in a bid that included a full set of encyclopedias and a set of pipe wrenches all for the low price of $1. This is incentive to go find the auctions.
Now on to investing advice. Investing has traditionally been more than monetary substitutes (metal, stocks, dollars, etc.). Historically investing has been land, art work and other items of value; say antiques. Some of these items like land and art are significant investments and made sparingly during ones lifetime. Others should be made regularly. Afterwards, my children and I spent a long afternoon cleaning and oiling these old tools, wrapping them lightly in cloth and placed in the aforementioned cedar chest with a handful of desiccant. We have our modern tools to use for working around the house and I already have some of the older tools that we do use regularly. The tools we put away were rare and valuable. For me, as I explained to my children, this was a modern day treasure chest. We have these tools if we ever need to use them, but if not, they are well protected and will only become worth more as they age. It is a win-win situation. It has changed the way I view my preparations and I am looking for more of these scenarios where I believe regardless of the situation, my family and I will be better off. If the world hangs on as is against all odds, I can imagine the delighted look on my children’s or grandchildren’s face when they open this box, years from now, loaded with well preserved antique tools. If the schumer hits the fan, I can picture the same delighted look (as well as one of relief or thankfulness) as these tools will provide the ability to do work that would be difficult at best without and any duplicates will make great barter items.
One last remark on these tools, every single one of them; all at least fifty years olds and some much older are American made. Forged in Cleveland, Detroit and Chicago; these are places my children know and have visited. The last lesson my children learned is that the USA used to be the manufacturing capital of the world and the stuff that we did make was made for the ages.
While I didn’t plan this experience I was fortunate enough to a) be a prepper and realize the value of the equipment and b) be a homeschooler attentive enough to realize the value of the lesson. My best advice, whether with regard to prepping or just living life is to always be observant and grab opportunities when available. There are many great options everyday to become better prepared.
A last addendum: over the Easter Holiday I was traveling to visit my relatives and went to visit the local antique shops in their town square. The goal was to add to my tool collection, which I did and bought a few more vintage tools. However the big win was with silver coins. Silver has skyrocketed so quickly, the coins were marked at coin value versus silver and well under melt prices. Realizing this I quickly bought out the place of WWII Nickels, pre-’65 dimes, and a handful of quarters, half dollars and even a well priced Morgan [Silver Dollar]. Apparently I didn’t miss the train on silver investing after all and based on current market values I could have turned the silver over for a 20% profit. Some (not all) had a collector value as well. As indicated in my previous closing paragraph, there are great options every day for those who are observant and grab the opportunity.