A very short podcast I heard recently from Mises really caught my attention. The analysis by Mark Thornton was excellent, but the part that really woke me up was hearing how many people are unaware that precious metals are truly the “smart money” during economic chaos. So, I downloaded the audio for this video to share with more than just his podcast audience.
Those who are considering physical precious metals should check out the four companies that qualified as truly “America First.” It shocked me after vetting out 31 total gold companies how many of them are donating to Democrats, working with the CCP, and/or embracing Central Bank Digital Currencies. These four are not.
Here’s the writeup followed by the transcript:
Mark discusses something bigger than the Disney layoffs: the Wall Street Journal‘s April 25 frontpage article on investing in gold. It would seem that the recent rise of the price of gold is the result of tired, dumb, and disillusioned crypto currency investors throwing in the towel to “chase shiny new object—gold.” Mark explains that the rational reasons for investing in gold loom larger than the entire
Hello, my name is Mark Thornton, and this is another episode of Minor Issues. Today’s episode was going to be about the Disney nightmares and layoffs, but that’s been replaced, so I’ll just say that this does not impact the hour employees at theme parks, so you won’t find them deserted this summer, and the layoffs will occur where the Austrian Business Cycle theory expects in terms of things like talent and content generation, capital building areas of Disney responding to higher interest rates and having to cut costs.
But today’s episode is replaced with an article from the front page of the Wall Street Journal on investing in gold. It’s quite comical, unfortunately, but it’s still great to see the Wall Street Journal forced to publish something on their front page about investing in gold.
It’s titled, “Weary Bitcoin Investors Chase Shiny New Object: Gold.” So all you tired and confused and dumb investors who’ve been putting your money in cryptocurrency have now found a new shiny object… making fun of today’s current gold investors. They say, for example, that in the old days, gold and silver, they were for old farts, but now gold is portrayed as safe and stable.
They point out that the searches for gold investing are way up. Sales of gold coins are way up, and the prices of securities of gold and silver investments are also gaining a lot of ground. But of course, don’t expect gold dealer Super Bowl ads anytime soon, and when you do see them, it’s probably a good signal that you might have to sell some of your gold.
So, they talk about gold being beautiful and shiny and very dense. You can melt it and recycle it. But those are really all the properties that made gold such a great form of money in the first place. We’ve been talking about investing in gold as a hedge against monetary disorder and chaos. And so we’re not surprised that gold is up over $2,000 an ounce right now.
And who can blame the market at that level given that central bankers are left wing, at least in terms of the United States, the Euro and the European Central Bank, and of course the Bank of Japan and many others. And then of course, we’ve gone through nearly a dozen years of zero interest rate policy, which had never been done before, and massive quantitative easing which had never been done before.
And so you get these, particularly US and European politicians and central bankers, they can’t get peace with Russia. They can’t cooperate with China. They can’t balance their own budget. They can’t control their own national debts. They seem to be very dysfunctional in a general sense and very disinterested in serving the economic interests of citizens in their countries, and that would include of course, also Russia and China as well.
But now we contemplate thrown into this situation a severe economic contraction, which is certainly possible. What does that mean if you have a foundation of monetary and government chaos, and then you add in a severe economic contraction? Well, of course that’s gonna adversely affect banks, finance, stock markets.
It’s gonna adversely affect government budgets. Revenues are gonna go down, expenditures are gonna go up, widening the deficits and increasing the interest expense of those national debts. And then of course, the potential for higher taxes and other crimes. And so when you look forward into that potential, what you see is the potential for much bigger bailouts and more monetary inflation.
So the interest in gold that people are displaying all over the country is not irrational. It’s not a second best choice, but it’s a very rational decision to invest against the political disorder, which politicians are fomenting, and the monetary and economic disorder, which central banks have been busy doing for many, many years.
About Mark
Mark Thornton is the Peterson-Luddy Chair in Austrian Economics and a Senior Fellow at the Mises Institute. He is the book review editor of the Quarterly Journal of Austrian Economics, and has authored seven books and is a frequent guest on national radio shows.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
