Thread: The "Safest" Place For Your "Assets"

I think an easy and safe way to protect your wealth is to buy physical gold and silver. Governments have been built and torn down, fiat currencies have been started and have become worthless, but gold and silver have held value since the beginning of time.

I don't agree with all of his thoughts, but here is John Maudlin's newsletter.... (perfect timing, was in mailbox at same time as FLTM's email.) I really enjoy reading his newsletters and his contributions are very acute using data points and real life experiences.

2010 Investment Strategies: Six Areas To Buy, 11 Areas To Sell - John Mauldin's Outside the Box - InvestorsInsight.com | Financial Intelligence, Advice & Research / Investment Strategies & Planning for Individual Investors.

he says buy:

1. Treasuries -I disagree with him here, but he makes a very compelling argument using historical data
2. income producing securities - highly, emphatically agree here
3. consumer staples/food- agree
4. small luxury items - no comment, I don't know enough
5. the US dollar - I agree. as soon as recovery is on horizon, the US$ will be the first to race out of the gates
6. Eurodollar futures - no comment, I don't know enough

interesting what he says to sell or avoid, I agree with just about all of it except for commercial real estate.... but that's a different thread.

Originally Posted by JScott

I find it weird that anyone would consider any other option besides treasuries or FDIC-backed banks as the *safest* place for their money...

I can't imagine any less risk to preservation of capital than these two options. Real estate can go down; currencies can go down; precious metals can go down; the value of material goods (weapons, ammunition) can go down; etc.

Unless the US government dissolves, I can't imagine losing principle in treasury bills or an FDIC-insured bank.

And if you honestly and truly believe the US government is going to dissolve, why not move overseas now and convert your currency?

Just my $.02...

pretty much sums up what we've said earlier in this thread....

and you're not alone... about 66bil felt the same way you do on Jan 14:

4 week t-bill at 0%
http://www.treasurydirect.gov/instit...20100112_2.pdf

all other bills and treasuries are all bubbling high at record low yields.... but this is truly as ironclad and safe as it gets for preserving capital.

HOWEVER, at these yields, we are bound for bubble bursting and principal investments most likely will be hit hard thus alternatives are probably worth looking at i.e. Fannie or Freddie bonds since they're gov't backed just like treasuries (for now)

The problem with FDIC insured deposits is that the FDIC is 8 Billion in the hole.
They reportedly made financial institutions pay up 3 years worth of insurance on deposits upfront. In addition; it seems that nearly 1,500 financial instituitions are at risk of collapsing within a year and a half or so; not the 500 or so claimed by FDIC.

Source: Bob Chapman / Gerald Celente (Watch their videos on youtube)

Why risk it?

Gold & Silver for me; say no to the fractional reserve banking scam.

OK I will tell you guys where I have been storing my money. Way I figure doing the same as everyone else is a pretty stupid idea. I needed to find an area where the prices are low and I can walk away with items for pennies on the dollar. I've been putting my money into high end art. Something that was 50k 10 years ago you can pickup for 5k in the last year. The art world got slammed and I took advantage big time.

I only mention it because I am done buying art and want the prices to go up now.

I tried the silver but it just wasn't for me. 100oz bars are pretty cool and make a great paper weight.

I hope this is not a dupe, but what about investing in an index fund of the S&P 500? and holding of course for at least 10 years.

It will go up and down, of course, but I read that over the long run an index fund of the S&P 500 will always go out at an average yearly rate of about 12 percent.

I remember Warren Buffett promoting this.. but I actually read it from another book. I can't remember where exactly... some multimillionaire internet business owners book.

anyone?

oh man! I just realized my post above was very slowlane..... I apologize to everyone. At least I realized.

Originally Posted by CVentures1B12

I had to go with Real Estate...

After that I went with Apartments. I feel like the rental market is going to go way up for a few reasons:
-More people going back to school (college, MBA, etc.) than ever. They will need a place to live during/after school to get on their feet.
-Ever growing population needs places to live. People are holding onto their cash and are less likely to put a 20% outlay on a house, which is what most banks are requiring these days.
-Mortgages are low, but people are also looking to start businesses. Realtors say that renting is "throwing away money"...I disagree...I pay 250 a month in rent, which allows me to devote about 1000 each month from my J.O.B. income into my business.

Please, please, please correct me if I am wrong!

Best,
Josh

I chose this as well, and I only had your second reason in mind - now I'm feeling even smarter for choosing so

My doubt was between real estate and precious metals, but I perceive real estate as something more "liquid" that can more easily be turned to practical use, sold, rented or adapted for another purpose.