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 food storage as an investment.
Precious Metals:
I’m still expecting a Reversion to the Mean for the gold-to-platinum ratio. Even if higher interest rates slow the sales of new cars later this year, platinum is still so undervalued (in relation to gold) that a price breakout is likely. If you want to expand your existing precious metals hedge, then buy platinum!
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I just noticed that David Morgan’s book The Silver Manifesto is now available as a Kindle e-book for just $6.99. If you are having trouble convincing your friends or relatives to hedge into silver, then this is the book for them to read.
Stocks:
At Seeking Alpha: Stock Market Way Ahead Of Economic Growth
Cryptos:
Casey Research: Surviving Fedcoin
Economy & Finance:
At Reuters: Rising costs, inflation on radar as U.S. earnings season unfolds. JWR’s Comment: Beware whenever the financial press starts publishing inflation warnings. That almost almost always means that higher interest rates–with all of the concomitant effects on all markets–are ahead!
Commodities:
The mass media is finally waking up to the full implications of the state-sanctioned threats to South Africa’s farmers. A major round of terror on the farmers will surely lead to White Flight from the country. That will implode both the farming and the mining sectors. If South Africa plunges into civil war, then the spot and futures prices of gold, platinum, palladium, and manganese will all go ballistic. Even the global prices of coal and iron ore would feel ripples.
Forex:
Forex Trading: GBP/USD aggressive breakdown April 28, 2018. JWR’s Comments: I’ve been warning SurvivalBlog readers about the manifold effects of Trump’s Weak Dollar Policy, ever since he was elected. I expect this policy to continue. Plan and adjust your portfolio, accordingly!
Tangibles Investing (Food Storage):
Over the past two years, I’ve done my best to detail a wide variety of tangible investments. Some of these are traditional and orthodox, while others are quite unorthodox. Today I’d like to discuss food storage as an investment. As preppers, food storage is a paramount consideration. It is necessary in almost every disaster situation. Storing additional food for barter is often glossed over, in some prepping circles. If done properly, I believe that it is one of the most wise investments you will ever make.
Because the Sun appears to be entering into a Grand Solar Minimum, it makes food storage more important than ever. Crop disruptions are quite likely in the next two to four decades. A failed annual wheat crop will send huge waves of uncertainty through the market. Price spikes are very likely. But if you stock up now, then you will be sitting pretty. After you have set aside a fully diverse two year supply of storage food for your family, I recommend that you then further invest in wheat and white rice. Both of these are ideal as long term hedges because they store so well. White rice has at least a 12 year storage life, and hard red winter wheat can be depended upon for three decades, or longer! Both of these will have near full nutritional value, even in the “out years” of their storage life.
Presently, through several SurvivalBlog advertisers, you can buy 5 gallon or 7 gallon food grade HDPE buckets of wheat and rice that are already packaged in mylar bucket liners and with oxygen absorbing packets. In my estimation those grain buckets will prove to be better than money in the bank. Not only will they be a sound hedge on inflation, but they are also insurance that you can eat!
I strongly recommend that if you can afford it that you buy at least an extra 500 pounds of wheat and 300 pounds of rice. And buy even more, if you have the cash and a big basement. Again, that is in addition to your normal food storage program. Someday, perhaps in just a few years, you will be very glad that you did!
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!
I buy canned bulk food like wheat and beans and rice from the LDS mormon website. The shelf life is 25 years, which exceeds my shelf life. They only charge $3 shipping regardless of the size of the order. It is one of the most mentally comforting things I have ever done, right along with buying my first firearm and ammunition. I consider buying bulk food to be insurance, which makes the expenditure logical and no different than health or car insurance.
Oil Hedge Fund Manager says $300 oil not out of the realm of possibility https://www.bloomberg.com/news/articles/2018-04-30/oil-hedge-fund-manager-andurand-says-300-oil-not-impossible
The Silver Manifesto … just downloaded it; though I just rolled over a 401K into a SD-IRA checkbook account and invested the whole 401K amount into silver and a small amount of gold. Now to buy food stores. Thanks for the heads up …
I agree on storing wheat and rice. While white rice will store long term very well, it lacks nutrition. Organic brown rice has the nutrients and none of the toxins. It can be dry canned for long term so that it won’t go rancid. It’s going to be even more important for us to get all the nutrition we can when TSHTF. Just google dry canning if you aren’t familiar with this method. It works for nuts and seeds too, and other things that are good whole foods that tend to go rancid like cracked or rolled grains.
Has anyone noticed gold cannot hold a $1350. And it hasn’t for years.
As for silver it cannot hit $18.
And if/ when the dollar collapses who will determine the value of either one?
Also, does anyone doubt if gold or silver ever hit $5000 for gold or $200 for silver per ounce that our government would tax it heavily or just confiscate it like it did in the 1930’s?
I would rather have food.
I know this article is about long term storage, but getting fresh replacements will also keep you alive. If you can grow anything at all where you live I would recommend some of the heirloom grains like amaranth and quinoa. Seed grains take up little room in your stores and can be hidden from anyone robbing your supplies. Also many people don’t know what these supergrains look like as plants and might overlook them as wildflowers in the field. Short-season vegetables might be the smarter way to go if we’re entering a cooling phase. Aquaponics is a useful way to get fresh food from a small space and will fit on a deck or rooftop. Be sure your seeds are non gmo from a reliable source. Remember – whoever controls the food supply controls the people who have to eat it or starve.
Wheat and white rice have very little nutrional value except as carbohydrates. Beans added to rice makes it a complete protein,consider rotating canned fruit and vegetables for a more balanced diet with storage life and barter ability.
I regularly trade silver on paper in both directions. Just cashed-in (limit sell order) on the short side.
My edge: Silver cannot get above its 50-MONTH moving average, on the MONTHLY (not daily or weekly) chart. That is the point where the bots, etc. run by the usual manipulators (Deutche Bank, etc.) slam silver back down.
Until silver can break above, and stay above the 50-month MA, it doesn’t matter how many times you read “The Silver Manifesto.” Silver isn’t going anywhere.
I have a bunch of wheat and rice stored, from when we ate those grains. Now, we have changed our diet so we don’t eat them, so I guess they’d be good for storage. I tend to not think of my food storage strictly for barter, although that’s a consideration. I tend to think of what we are willing to eat, and I try to be producing that, such as chicken, beef, pork, eggs, milk, cheese, butter, veggies, fruit, etc. Those are the things that tend to get stored in large quantities.
It’s the end of the month, I’ve paid all my bills, set aside my savings for future accounts.
I saw that silver took a dip this morning, so I called my local coin shop and had them set aside six ounces (about $100+) for me at spot + handling, to pick up this afternoon after work.
Little by little……….