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!