Add gold to your survival bunker
The dollar is falling. “People aren’t necessarily worried about inflation pressures,” says Stephen Platt, a commodity analyst at Archer Financial Services in Chicago. “They’re more worried about the devaluation of the dollar.” Historically, gold has been the asset of choice for people who lose faith in their currency, and gold and the greenback have had a seesaw relationship since the 1970s, when currency prices were first allowed to float. When one rises in value, the other tends to fall. Owning gold is increasingly seen as a hedge against the hazards that come with holding the dollar, the world’s reserve currency. There are several forms of gold and silver that can be bought on the market today, by adding precious metals to your survival bunker will effectively safe guard your family from any possible threat;
Add silver to your survival bunker
Dollars are sloshing around the global economy, trust me you need something to barter and gold stored in your survival bunker will provide that source of bartering. The world is swimming in monetary stimulus, because central banks reacted to the financial crisis by aggressively printing money.
Gold is responding to the eased monetary policies with higher prices, says Martin Murenbeeld, chief economist at Inflation will return someday. Murenbeeld, like many other economists, believes the liquidity surge from today’s easy monetary policies will almost certainly lead to higher inflation. David Levenstein, a precious-metals analyst at Lakeshore Trading in Johannesburg, South Africa, predicts that “when we see inflation kick in as a consequence of the huge stimulus programs and massive escalating deficits, gold will soar even higher.”
Individuals and institutional investors are chasing the momentum. They don’t want to be on the sidelines when it looks like everyone else is a buyer. The SPDR Gold Trust (GLD), the world’s biggest gold-bullion-owning ETF, recently held nearly 1,130 tons of the shiny stuff, up by 40 percent this year. That’s a bigger stockpile than the gold reserves for all but five nations. Here’s what’s new: Financial advisers are now including gold as a part of smart asset allocation, says Murenbeeld. Maybe that’s only because it’s been rising, but it could represent a significant development.
If all investors, not just those who think the world might end in 2012, start allocating even a tiny share of their portfolio to gold, that could put a tailwind behind the ETF. Americans are going nuts for U.S. gold coins, too. The U.S. Mint has sold 1.13 million 1-ounce American Eagles this year, 31 percent more than in 2008. Consumer demand to store gold is so strong that storage space has become scarce. Some retail investors were recently told to move their hoard out of HSBC’s Manhattan vaults so the bank could better service institutions, according to The Wall Street Journal.