May 23, 2009

What are you doing today to protect your wealth (assuming you have any wealth left)?



Getting out of cash yet?

If so, into what?

50 comments:

preston said...

I sold my house for 2 million two years ago at the peak and moved to treasuries. They gained over 20% last year so I sold at the peak and moved to tips.

Now I'm moving back to treasuries, cash is still king. The economy is in an ever shrinking box bound by peak oil. There will be no recovery, no inflation (name one person who is getting a raise this year), no hope.

Anonymous said...

I was raised by my grandparents moreso than my own parents. They were born in 1900 and 1901.

A couple things they always told me was to "save your dimes" and to put money away and FORGET ABOUT IT.

I did...and then some. I've been a "Mattress Stuffer" for life. Every time I take money out of the ATM I set some aside and pretend I never had it. Even when times were tough I never touched it. I still have money in the bank and I know that I don't earn interest on cash at home but it's a hard habit to break.

To make that "mattress" money even harder to spend, I turn it into change. Jugs of coins. We may end up with remonitization of paper currency but probably not coinage. I'll probably use them as a part of my down payment on a house.

I still have my gold and silver and don't ever plan on selling it. It will most likely be given away when I'm dead.

I still have my CTIC (cancer meds) and am researching who is developing new psychotropic meds as we will be a medicated world as people won't know where to turn and they will turn to their Doctors for the answer.

Meds will be the next bubble and as you say Keith, it hath been foretold.

fat amelican said...

I'm buying bullion and real estate outside the reach of the U.S. government. This little project is a lot harder than I thought it would be and many countries now refuse to even consider bank accounts for Americans without lengthy, detailed background checks and multiple letters of recommendation from locals.

I think capital controls are only a few months away at best. If the situation with the USD really worsens I see a day coming when they will be forced to raid IRAs and 401Ks to fund their screwy bailout programs. Of course it won't be theft when the government empties the accounts and takes the money, they will be nice and replace the contents with an IOU. Full faith and credit - LOL.

patrat said...

Today I realized that my wealth is with the people whom I love and who love me. I called them and talked to them. I invited some of them over for dinner next week. I turned off the TV and the computer. I spent the day cleaning, looking at old pictures and hanging some on the wall, getting rid of stuff I don't want or need any more, drinking a few beers, listening to Sarah Vaughn, dancing around a little bit and remembering what it is like to love life.

science teacher said...

1. Gold - physical, in my hand and outside the US with Goldmoney.com in Zurich and Everbank account.

2. Silver - as above.

3. GLD/SLV.

4. oil (not in my hand!) - USO,DBO,USL and DXO

5. Ag commodities - DBA (NYSE) and AGAP (London)

6. Foreign currencies - Singapore, Brazil, Aussie and Japan.

7. Miners - HL, PAAS, GDX.

We have a shit storm dead ahead - this is the lul before the inflationary storm of your lives. Brace. Brace.

Second equity leg down on its way.
DOW - 5000, S&P 500.

Oil - $200

Thanks for all you have done Keith - especially HP! Sold at the peak thanks to you.

Anonymous said...

Deflation not inflation, Keith. But I've been telling you that for 3 years.

I have plenty of wealth thanks to going against the masses who are asses.

Obama, I think, is really going to be profitable.

What fun!

Anonymous said...

Keith - you're going to grin watching this documentary - Vegas after the crash - you called it: THREE YEARS AGO !!

http://www.youtube.com/watch?v=rFTZ3flsipE&eurl=

Mortgage broker to hooker!
YOU called it!

long termer said...

Sold all my shares in Global stocks almost at peak, and invested it all in Israeli companies, it has held its value and then some, so far.

And once again; our economy is a ‘human’ economy and unless you think things are ‘different this time’ what peoples economy do you think is going succeed?

Miss Goldbug said...

Sold all our gold stocks back in summer of 07. Been in cash ever since. Waiting for interest rates to skyrocket.

Anonymous said...

"...Mortgage broker to hooker!...""...a big step up..."

That owner/bank who caused the family to get tossed with 10 minutes notice/no chance to move out is unfathomable.

So is the system that says "hey sorry; not my problem."

I'm not sure I could keep myself from exacting a most excruciating revenge.

What's the downside? Not like they would pay you after a judgement. I´d take mine with a pair of vicegrips and a blowtorch.

"...this is an opportunity to remake our economy..."

Bukko_in_Australia said...

We're thinking of converting everything we have into physical gold and literally buring it in the ground somewhere. Seriously.

Our Swiss bankmaggots are intimating that they're going to kick us out of our account because we don't have a million American dollars in it. All Americans with less than that at our bank (hint -- it's not UBS) are being liquidated and given a cheque for the proceeds. It's because of a "show me the clients" provision in the TARP law on Americans who have moved money overseas, according to our gnome. The Swiss are scared enough of the U.S. that they're abandoning their secrecy about American clients.

That's no worry for us, because we paid taxes on every asset we shifted there. But we're being treated like it was dirty money. I guess the Swiss don't want to bother with whatever bureaucracy the U.S. is hitting them with for people with less than 7 figures. We're not exactly poor, but we're not at that level.

It would suck for us to get cashed out now, because we have a chunk of change in what's essentially a stock-based mutual fund. That's down by six figures -- in euros. And the euro is down vs. the dollar from where it was when we converted a lot of money out of American currency. We don't mind, because we're in for the long run. We're not leveraged in the least, so we don't sweat the fluctuations.

But it pisses me off that we'd be forced to liquidate when we're behind on both the exchange rate and the overall valuation. What kind of bank tells you "Your money's not good enough for us. Take this cheque and get out of here"?

To do what -- let it evaporate in a degraded currency? Be bled by some government that wants to collect the equivalent of property tax on a bank balance? I don't mind paying taxes on profits -- that's fair. But to be sucked dry on assets that are losing money? Screw that!

I've gotten to the point that I don't trust ANY investment vehicle. Stocks -- nothing but betting chips at a crooked casino. Bonds -- who ISN'T likely to default? Savings accounts -- for 0.25% interest? Property -- what was your last blog about, Keith?

I concede that there will be short-term blips up for the American stockmarket, as you have foretold. But I'm not a savvy enough trader to play that game and win. Plus I don't like to think about money all that much. It's fascinating to read about high finance and politics, because I enjoy knowing which way the world is headed. I don't care enough about money to want to try and parlay my wad into a bigger one, though. I'll be happy to stick with what I've got, work hard for as long as my body holds out, and live as well as I can on what remains.

The world implosion and crooked governments are making that hard. When you can't even trust the Swiss to be honest money managers, what's left? I hate to find myself agreeing with paranoid gold bugs, because I've always thought those people were a bit tetched. However, what fat amelican says seems saner now.

So how does one move potentially hundreds of gold coins across international borders? There are limits to the dollar amount of assets you can carry, and gold sets off metal detectors. I'm doubly hacked off because we moved our physical gold to Zurich last year, thinking it would be safer with them than in a house that could burn or be burglarised. Now we're going to have to carry it back, and more? Fucking Swiss back-stabbers! I still can't believe it.

jim said...

IM GETTIN INTO YER MOM!!!!!!



/Seriously, have no idea what to do. Still betting on big stock market down leg.

Anonymous said...

Bukko, to some degree its your fault, you have not been paying attention here, and put your trust in Eurotards.

Looks like chocolate from the outside but rotten to the core on the inside.

Nuff said.

Anonymous said...

I'm putting my 30 bucks into Zimbabwe dollars so I can become a billionaire.

Anonymous said...

I wish I knew, got around 95K and I am glad
I locked some of it in CD about a year ago, but what to do when they end? No real good ideas yet. Oil stocks? pay off my retirement house way earlier than the life of the loan. Things are good as of now, putting 2k in the bank and maxing IRS, 529, TSP

les said...

SLV
CALM (ag products)
VM (prepaid cell phone service)
SSL (coal to gas)
RHT (rest of the world can't afford windows)

Lady Di said...

Govt controlled IRA's and 529's are in cash and treasuries - missed this most recent rally - wasn't ready to go back to the casino.

The rest and new money going forward are in hard assets - physical gold, silver and real estate. It's what I know and trust.

Anonymous said...

The safest place for your money at this time is probably a PVC pipe buried in your yard somewhere.

Anonymous said...

I expect hyperinflation after the deflation finishes next year or so, and I'd liefer put my trust and investment cash in friends and family then the government, even though I do hold a government job. I have money in physical silver;no debt, am planning to pay cash for ten acres of farmland so I can have pastured poultry, a fishpond, and some grain. I have two paid off homes, (one rented out at one third fair market value in a tight rental market to a family in need); a kid whose (low cost) public college expenses I am paying; a middle schooler in private school, another needy family on my hands whom I am subsidizing $400 a month to keep an eye on the college kid; am paying for two nurse assistant certificates for two unemployed friends, and have committed to paying for a friend's two children's skilled trade certificates in community college. My savings are coming down, but this is the rainy day/decade for which I have been saving, and I don't think I will retire. I don't think most people will retire.

Anonymous said...

i am looking at real estate in spain. there are some good deals there.

BIG_J said...

Preston - I got a 5.1% raise this year and a 75$ extra bonus per day up to 275$ from 200, after 12 days a month. I work in consulting.

Anonymous said...

TBT (short treasuries already up 25% since Jan)
IAF (Australia up 15% and spitting off a 15% div as well)
MERKX (anti-dollar fund down but recovering)
BRK.A (my long termer)
Rent controlled apartment

Thanks to this blog (and some others linked from here) I'm sitting quite pretty and am now up through this mess and have helped some friends (but not as many as I hoped) avoid disaster too.

Thanks keith.

Daphne64 said...

Precious metals and stocks of gold and silver mines.

And a tinfoil hat, gun & ammo, and food and water of course.

Don't laugh, my stock portfolio has almost doubled from it's previous high mark early last year. This is largely thanks to holding a lot of Central Fund of Canada on the ride down (this was a lot more stable than mining stocks) and switching into a bunch of silver wheaton at 3.05 last December.

I don't agree with keith much these days, buy I do agree we have a whole lot of inflation ahead.

Anonymous said...

.



To patrat,

I gotta agree with ya.

When the shit hits...

don't participate!

Have a beer for me.


.

Anonymous said...

Heads up for those traveling through the USA with cash or coins. The TSA now considers any traveler carrying more than $10K as a suspicious person, and they will bring in the local police to investigate. At best, you will be delayed and miss your flight, and at worst the money will be confiscated. Your option then is to file a lawsuit to try and get it back. Anyone remember when we lived in a free country?

Anonymous said...

people, i have a good deal of savings and a great pension. i used to worry about money investments ect. then i got sick.when you feel like sH##, money and things seem so less important.eat right, watch your stress levels,and remember, health is truly wealth.

Paul E. Math said...

Cards on the table, here's my taxable account portfolio, with approximate pct of portfolio values:

GDX (gold miners etf) 28%
PBW (alternative energy etf) 16.5%
DAG (double agriculture etf) 14.3%
HL (Hecla gold and silver miner) 12.1%
AXPW (lead-carbon battery maker) 14.3%
CCJ (Cameco uranium miner) 11.7%
Cash 3%


Tax-deferred (IRA) acount:
DAG (double agriculture etf) 45%
XIDE (battery maker) 19%
ENS (battery maker) 19%
Cash 16%

I've only been doing this for about a year, moving mutual funds into the taxable account. Up 60%.

Moved old 401ks into the ira account in feb and am up 25%.

Lucky? Absolutely. There is NO WAY that I would have predicted those investments to do that well. But I'm glad they did.

It makes me nervous because I know that if they went up that quickly they can fall that quickly too.

But my money is on 2 main things:
1) Obama and Congress piling money into alternative energy
2) central bank easy money making real things like food, energy and gold worth more either now or in the next few years.

Good luck to everyone. Don't take my word for anything though - I recommend seekingalpha for anyone looking for investment information.

Nimesh said...

Anonymous fat amelican said...

I'm buying bullion and real estate outside the reach of the U.S. government. This little project is a lot harder than I thought it would be and many countries now refuse to even consider bank accounts for Americans without lengthy, detailed background checks and multiple letters of recommendation from locals.

I think capital controls are only a few months away at best. If the situation with the USD really worsens I see a day coming when they will be forced to raid IRAs and 401Ks to fund their screwy bailout programs. Of course it won't be theft when the government empties the accounts and takes the money, they will be nice and replace the contents with an IOU. Full faith and credit - LOL.

May 23, 2009 7:13 AM

Yes, I agree. Backed by the "full faith and credit of the United States of America".

I was at a bank and a couple was sitting in the cubicle next to me and told Mr. Banker that they wanted to withdraw their cash and buy gold and silver because they were afraid one day paper money would be worth just that; paper.

Mr. Banker told them "you don't understand, the government won't allow that to happen (the government to most Americans is like God, it can do miracles) and besides, your money is backed by the full faith and credit of the U.S.A.". The couple nodded their head and agreed not to withdraw their cash because they have extensive faith in our government.

Anonymous said...

Why keep cash in bank for the pittance of interest earned? And banks get to lend it out via fractional reserve. Keep account with only enough for living needs and hang on to your cash at home.

Looky here -- Germans are up to something:

By Peter Starck FRANKFURT, May 19 (Reuters) - Private investors should hold up to 15 percent of their wealth in physical gold, according to a German asset management company which plans to set up 500 'Gold-To-Go' ATMs in Germany, Switzerland and Austria this year.

A gold-dispensing automatic teller machine (ATM) was on display at Frankfurt's main railway station for a one-day marketing test on Tuesday.

A one-gram (0.0353 ounce) piece of gold, the size of a child's little fingernail and about as thin, cost 31 euros ($42.25) -- a 30 percent premium to the spot market price .

The flat rectangular piece, bearing the imprint of Belgian metals and speciality materials firm Umicore (Brussels: UMI.BR - news) , came out of the cash-only ATM in a tin box, including a certificate of authenticity.

'This is more than a marketing gimmick,' said Thomas Geissler, chief executive of TG-Gold-Super-Markt.de, the company planning to set up the 500 gold ATMs at a cost of 20,000 euros apiece.

'It is an appetizer for a strategic investment in precious metals. Gold is an asset everyone should have, between 5 and 15 percent of your liquid assets in physical gold,' he told Reuters in an interview.
end quote

Separately, J.Paulson billionaire hedge fund manager has hedged against inflation with a gold-denominated fund (that's right not in Euro or $) but gold.

Hearing internet chatter that China is moving to peg its currency to gold. Its one explanation for their quiet yet massive purchases of gold. Wow, that would make currency quite attractive versus $ reserve. Who knows, but it just feels like the worm is turning....

charlottemom

Anonymous said...

real estate baby!!

not kidding. i rented from '06 to '08. i'm buying up real estate now. bought 2 houses, one to live in, one to rent. closing on a condo next week.

inflation is coming and leveraged hard assets like r/e is where the smart money will be.

George L said...

I'm heavy on silver bars and rounds with apmex.and yes,being saved outside the united states.PC repairs business has been rising over the last year and a half.

my catering business has also been booming.a lot of my crappy competition has been put out of business since people look for price and quality and not just price.

I have to thank both Bush and Obama for my success.

here's a good story:
from porn star to Realtor to porn star

http://tinyurl.com/raylenepstar

http://tinyurl.com/raylenerealtor

Anonymous said...

Keith, I am reading this column in disbelief. There are still people out there that don't realize it is the end yet.
The next great investment is the Death Bubble.
NOTHING is going to save you, not your Gold, Silver, Money in Treasuries, Hiding it under the bed, PVC pipe, etc. because the whole world is going down for the count economically. You will be able to count on NOTHING.
In just a few months, cities will look like Ghost towns, there will be nothing left and the entire structure of our civilized life is going to disappear.
I know you don't believe me now, but I assure you that America will begin the world cycle of destruction from which our society will NEVER recover. No security, no jobs, plenty of violence in the beginning as people suffer nervous breakdowns because nothing can save them.
It will be a sure sign. It begins when GM closes it's doors. Then, in the Fall, an unbelievable series of things regarding debts and bankruptcy will rock the Stock market and it will crash. Shock will follow. Then, riots, burning, shooting, looting as society falls apart. Banks gone, food delivery systems gone, all economic structure goes down like dominoes. MARK THIS.

Jim in San Diego said...

.
.
.

"Today I realized that my wealth is with the people whom I love and who love me. I called them and talked to them. I invited some of them over for dinner next week. I turned off the TV and the computer. I spent the day cleaning, looking at old pictures and hanging some on the wall, getting rid of stuff I don't want or need any more, drinking a few beers, listening to Sarah Vaughn, dancing around a little bit and remembering what it is like to love life."


That is beautiful. That is real wealth. Thank you.

Bukko_in_Australia said...

Bukko, to some degree its your fault, you have not been paying attention here, and put your trust in Eurotards.I generally disagree with your revulsion for Europeans, anon. I have wiped many of their arses too, and find them to be no stinkier than any other peoples'.

(I mean that figuatively; not literally. I breathe shallowly through my mouth when I do the nasty part of the nursing business, so I don't smell a thing, even with the C. Diff and GI bleed patients. But people are people no matter where they come from -- some angels, some sonsabitches, most people with a bit of both.)

Where you're right is that I was naive to have any faith in Swiss bankers. Not because they're Swiss, bit because they're bankmaggots. I'm plenty sceptical of U.S. financial people, and real estate agents, and anyone else in the U.S. who handles money for a living. Doubly so for people down here. I like the Aussies, don't mond going out for a beer and a yarn with 'em, but no way would I let them handle my money.

But the Swiss -- handling money is their forte! Even as they were allowing the Nazis to roll trainloads of Jews through Swiss lines because it was more efficient to get them from Romania to Polish death camps that way than avoiding neutral territory, the Sweitzer were safeguarding Jews' deposits. I thought they had a sense of professionalism; pride in workmanship with money. Because if their nation doesn't specialise in that, what competitive advantage does the country have? Skiing on snowpacks that are shrinking every year? Fondue? Franz-Diedrich --- gimme cheese!

I also had an element like the people who invested with Bernie Madoff even though they suspected he was a crook. But he's MY crook! I thought that since the Swiss are behind so many financial games, they would make my money grow via their gamesmanship. But when you do business with crooks, even supposedly honest crooks like Swiss bankers, the ultimate fact is that they remain crooks. And they'll burn their own clients.

They're not crooks because they're European; it's because they're bankers. The Swiss are cutting their throats in the long run, just as GM was via its bad products. They keep this up and their reputation as a financial centre will die.

As it stands, I'm not out any money yet. We have various legal methods to delay any dropping of the axe that would result in a forced sale of assets at a low value. My eyes are wide open, and I'm prepared to react fast. It will probably even result in some extra trips to Europe. But I'm less trusting of them, you got that right.

patrat said...

Anon 7:13

... as we speak! :)

A votre sante, mon ami.

patrat said...

The same to you, Jim.

patrat said...

(It just means "to your health, my friend.")

Mike Hunt said...

Bukko,

How about keeping your money in AUD- that rebounded quite nicely and stands to go up once Oz exports to china return.

Paul,

Some of your holdings (AXPW) for example, are really thinly traded securities. Like you would have to buy up the full days trading for several weeks to build up a position in this. How do you unload it with thin volume?

Keefer,

For me I am almost all in cash now with the exception of my IRA and house with no mortgage. About 35% of the cash is in Singapore dollars, about 10% in Thai Baht. The rest is in US dollars, about which 35% is in a trading account.

Cash has already been trashed and stands to go up when interest rates go up. Likewise the market rallied hard so the probability of continuing to keep rallying is low. You've got to think 1-2 steps ahead I believe. I put my cash into the market too soon last year and am trying to be more patient now. If I miss an opportunity I won't kick myself too hard because missing opportunities is still better then losing money and getting stuck.

-Mike

Paul E. Math said...

Mike, you can tell by my portfolio that I've ignored all conventional rules about diversification and liquidity. And risk.

I'm definitely flying without a net on AXPW but I'm up enough on it now that it can tank and I'll still break even or come close.

Besides, 14.3% of my portfolio is still not very much - I may talk like I'm a big-shot but I'm definitely not.

And all these battery makers stand to benefit greatly from the grants and loans being offered through the stimulus package.

They also stand to benefit greatly from the build-out of alternative energy.

And they've been soaring.

Bukko_in_Australia said...

Mike, I've got a small position in Aussie-dollar denominated assets. The "superannuation" [like a U.S. 401(k)] that my hospital puts aside for me -- 9% of my salary -- is in a medical workers' retirement fund invested in the local sharemarket in AU$.

I don't like to keep five figures worth of Aussie money in my bank account because the currency gets so whipsawed. Over the past 12 months, an Aussie has gone from being worth 94 U.S. cents to 59. That's better than a 40% swing. Great if you like playing Forex or riding roller coasters. Or maybe they're the same thing.

I profited from it slightly by moving $7,500 Aussie into a U.S. account last Northern summer when it was better than U.S. 92 cents, but that was just to replenish the American checking account, not as an investment move. I may try to make a play on the sloshing back and forth, but unless it's with six figures, the returns are hardly worth the bother. Unless you're leveraged ("geared" in the local parlance) and I'm conservative enough that I'm not keen to crawl out that limb.

Devestment said...

Buying distressed tangibles that I want regardless of their price fluctuations in areas that are in the scope of my business or personal interest.

Staying away from bubble assets like long term gold. (Making money brokering gold but not holding speculative).

Spending within my means while I enjoy many vacations, friends, adventures, and family.

Holding the dollars that I traded inflated assets for in US Treasuries.

Not betting against the house.

chslaxcoach said...

I bought a bunch of stock with Peter Schiff in October. It is up 18%. I bought a bunch more on Monday. Literally, I bought six stocks on Monday, equal portions. Three of them are up 10-15% this week. No joke.

Anonymous said...

Im still living like a king eating steak and driving a bmw to the golf course. It's all over soon enjoy while you can!

Miss Goldbug said...

I found Clara two years ago on youtube.

Clara tells some interesting depression stories during her cooking episodes. She has become quite a sensation on the net.

93 years old with good advise to surviving the depression.

http://www.youtube.com/watch?v=P4IjNV3lZkQ&feature=related

Anonymous said...

You fools are comical. Keif you are really attractring the wackos on your site. They sound crazier than the people that build bunkers in their back yards in the 60's or the folks that bought all the water,canned foods,batteries and duct tape and plastics before the mellinia. Trust me, if things get that bad your gold coins will be the least of your worries.

I believe one should always prepare themself but you cowards are operating out of fear. Fear and gread, same difference.

I guess it takes all types. I'll wait for the fearmongers to start dumping gold before I start buying @ 30c of today's price.

YoungExec2B said...

Paid off all debts, except mortgage - about 5-6 years left to go. My rate comes up for renewal towards the end of next year, and if the Bank of Canada can be believed, I'll be able to get a 5-year fixed at under 4% by then and be able to put this sucker to bed before inflation rises.

Looking for a place to put investment money. I'm having a tough time deciding where to put it. It seems like it's a very unstable period right now. If this keeps up, I may just pay even more on the mortgage and have it paid in 3-4 years. I figure by paying it off early, I'll save about $125K in interest payments, which is likely a better ROI than I would get anywhere else.

That way, when interest rates inevitably go through the roof to soak up the extra liquidity and prevent currencies from completely tanking, I'll have no debt owing and a pile of money to put into high interest bearing investments.

Miss Goldbug said...

"I bought a bunch of stock with Peter Schiff in October. It is up 18%. I bought a bunch more on Monday. Literally, I bought six stocks on Monday, equal portions. Three of them are up 10-15% this week. No joke."

Thats good, I believe in Peter Schiff, however, the stock market will continue crashing-watch out come Oct. Even gold stocks will get hit. Check out NEM or RGLD chart for last Oct-Nov time period.

i've had it said...

I'm in Gold, Cash, CD's, and short-term bonds. I missed the most recent bubble driven by the grifters and banksters in dc and wall street but i don't care, because the market will be going down soon and i'm going to short it.

I see a crash again in the fall.

I don't think real estate is a good investment at this point since there is so much uncertainty as to what is going to happen with the $1 trillion of alt A and option arm resets that begin this fall and go until summer 2012. I think by next spring we should have a good idea as to whether these toxic loans will have little effect or will put us under once and for all. remember, they were securitized, sold, and then used by the i-banks to leverage 40-to-1. All of those investments are currently being hidden by the banks with the Fed's approval.

What this means is that this sucker could blow to smithereens once again.

wallstreetvet said...

This is shocking. 99.9% of posts above DONT say buy equities? All other blocks is the same (Alphaville FT, Zerohedge). Its all Gold,Cash,misc.

Are we missing the bull argument here? I am not a bull, but we need to discuss why we are all one sided. Gets me worried.

Anonymous said...

all of my savings the past two years have gone to my divorce lawyer... 15k invested has yielded a 50k return... plus a monthly dividend... now what to do with this chunk of change..? not RE yet...