The Real Gold

During a phone conversa - tion recently the caller expressed concern about a possible economic collapse in our country and asked me if I thought gold was good insurance in case this happened; I posed two questions as my response, 1) can you truly afford to lose money, perhaps a lot of money, and 2) in the event of a major disaster, do you feel confident that someone with food, knowing they may not be able to get more anytime in the near future, would be willing to sell their food – for any price? If yes, buy the gold, if not, rethink what you can buy that will provide the best value for your money towards disaster insurance.

I have seen gold prices as much as $2200.00 an ounce; as I write this today I found it for $1323.00 an ounce. So, anyone buying gold at $2200.00 an ounce has already lost $877.00 towards their “disaster insurance”. Precious metals are no different than the stock market; one day you might be a millionaire – the next day a pauper. This is not to say that you cannot make money if you buy when the price of gold is low and sell when it is high; however, in general, the people getting wealthy are the ones selling the gold, not the buyers.

If people want to spend their money buying gold as their insurance against disaster, I respect their decision; I do not personally embrace this method of preparing for disaster. It all boils down to most Americans cannot financially afford to own gold, but beyond that – you cannot eat gold! You can buy a lot of food for $2200.00 or $1323.00. In my opinion, buying gold in the absence of a well-managed food storage plan, is like buying “fool’s gold” – you are not getting the best value for the money you have to spend.

Every time a commercial airs on television touting ownership of gold to ensure economic well-being, I am reminded of the gold rush days in America, when miners were paying $8.00 for a bag of salt, $3.00 for an egg, or $20.00 for a steak that before the strike was $.25. Who was really wealthy under these circumstances – it was not the people with the gold! It was the people that owned and sold the necessities of life; they not only had the where will all to sustain themselves and their families, they had the ability to become wealthy by selling the necessities to people in need of these items with much less risk and hardship.

I recall a conversation between my Mother and I; Mother was a child during the Great Depression. One day I asked her how difficult it was for her and her family to live through this time in our country. Surprisingly, she said they hardly realized there was a depression; they lived on a small farm and raised or grew the bulk of their food. If they needed something the farm did not or could not produce, they bartered food for it. Prior to World War II, most Americans lived on farms and ranches; after World War II there was a mass exodus to the city and jobs in the factories.

I grew up in the city and as I aged I realized many Americans have lost much of the knowledge our ancestors used to sustain themselves, like gardening, animal husbandry, carpentry, hunting and fishing, etc. Gone are the days when most Americans owned a few acres on which to provide for themselves; the majority live in apartment complexes or on postage stamp size lots in the city or suburbs. They buy their food in the local supermarket, a few days’ worth at a time, so it will not spoil.

Prior to World War II, as had people on this planet for thousands of years before that, individuals and families  - our ancestors - prepared to sustain themselves through uncertain times by raising and growing their own food, then harvesting and preparing that food for storage – it was either canned, dried, salted, or stored in root cellars. This was their “gold” – their insurance against hard times.

Today, when word of a pending disaster is spread, people rush to the supermarket to “stock up” on necessities – not gold. The reality is that in America today, our supermarkets have on hand a few days’ worth of food at most and are unable to supply hundreds of people in the immediate area with emergency supplies in a matter of hours. A few days after Hurricane Ike went through our area, out of curiosity I went to a nearby supermarket, it looked like a plague of locust had been through it; not even a can of dog food was left on the shelves.

Disasters can take many forms - civil unrest, earthquakes, floods, forest fires, blizzards, hurricanes, meteor showers, drought – and wars. Loss of employment can mean financial disaster for many Americans. When Hurricane Rita, a Category 3 storm, hit East Texas in 2005, it caused wide spread flooding from storm surges, heavy rain and high winds. There were residents of East Texas without electricity and running water for months. We can never fully predict the future, we can only prepare to the weather the “storms” we encounter in life as best we can. Attempts to prepare should not take place the day before the disaster hits!

Today, people who prepare to weather the hard times might be called – dare I say the word - “Preppers”! I have heard all the jokes and all the different definitions for “Preppers” – but the one that truly represents this group of people is – “a Prepper is a person who takes personal responsibility and self-reliance seriously”. Granted some people take prepping to an extreme, like moving to the wilds of Alaska or living in a cave in the Arizona desert – hey, I don’t have a problem with someone who feels this is right for them; but for most Americans, this is not reality or a desired life-style.

There is a particular group that encourages its members to store at least one year’s worth of food as a buffer against hard times; however, starting out with a one to three month supply is a good goal and can be expanded, if desired, as you become knowledgeable. Even a two-week supply is more than some people keep on hand!

There are a lot of reasons why storing food is smart, 1) foremost, it may save your life and that of your family in the event of a disaster, 2) it is a buffer against rising prices in food – you can buy bulk supplies of staple goods on sale, i.e., canned vegetables, sugar, flour, grains, beans, etc., thereby saving money, 3) stored food can help sustain you and your family through economic hardships, such as job losses or major health issues, 4) it can, particularly specialty items, be used as barter, and last but not least,  5) it provides  a sense of security in a World seemingly gone insane!

All Americans should take responsibility for learning to grow their own food – be it in their back yard or as part of a community garden. All Americans should have a food storage plan as a buffer against disaster. I hear people say they don’t have the money to buy extra food just to store it; the question is – can you afford not to do so? With a good food storage plan, the food is not just being stored; it is rotated and replaced as used so the amount on hand does not fall below sustainable levels. Everyone can find some extra money in their budget – quit smoking cigarettes, rent a movie for the entire family to watch at home instead of going to the movies and spending a small fortune on junk food while there, forego that $100.00 dress that you don’t need – the money is there, look for it!

Developing a personal food storage plan can be a challenge, but it can also be fun. A well thought out, well managed food storage plan is worth its weight in gold. If someone calls you a “Prepper” just smile and take it as a compliment – because one day you may be the person with the “real gold”, the priceless bags of salt, rice, beans and sugar!