As The World Turns

by JDH on March 23, 2013

My comments will be brief this morning, for two reasons.

First, after spending a few hours on my Las Vegas vacation last week shooting pool with my sons, I have developed a strained forearm.  Yup, I’m so old that I can injure my arm trying to impress my sons with the speed of my breaks.  My chiropractor had a good laugh when he saw my injury, and advised my to take it easy for a few days and I would be fine.  Alas I had a lot of work to catch up on this week, and apparently signing my name a few hundred times, and working at the computer and living life did not help with my recovery.  So, this weekend I will take it easy, and be good to go for next week.  I promise that next week’s edition will be longer and more verbose, since it will be the end of the quarter, and I’ve got Friday off to spend as much time as I want analyzing and typing away.

The second reason for my brevity is that I have nothing to add to the discussion.  The discussion on the Buy High Sell Higher Forum this week was better than any nonsense I can spew.  I agree that the situation in Cypress specifically, and the world in general, is not good.

The proposal to simply take some of everyone’s bank account to pay for the sins of the bankers and the government is very scary, and is a perfect illustration of the need to diversify.  If you have all of your money in one bank account, you are a fool.  If you have all of your money in any one investment, you are a fool.

And yes, if you have all of your money in gold coins buried in your back yard you are also a fool.  Gold is good, but having everything all in one place is not prudent.

(Also, here in Ontario, Canada, it’s still winter.  Last year at this time my father advises me that he had already fertilized his lawn.  We were walking around in short sleeved shirts.  Today the temperature is below freezing, and there are still a few inches of snow in my back yard.  My point: Kind of hard to dig up your gold if it’s under a foot of snow and the ground is frozen…….).

The solution is to have more than one bank account, and have a few dollars in each.  Have some gold and silver, in different formats, in different locations.  Have a coin or two at home, and some bars in storage with a reputable storage company offsite.  The storage company may go out of business, which is why you don’t leave everything all in one place.

It may also be prudent to own some real estate (like your house, or a farm).  If you do own property, I advise you to invest in goods like a shovel, a tractor, some seeds, etc. so that you can grow some food.  In real life, food is more important than shiny gold coins.  If you’ve got the cash, put in a basement wine cellar, because, again, a bottle of wine is more practical than a gold coin.

As I have stated before, I can’t see the future, but my gut tells me that at some point the house of cards collapses, and gold will be a great investment.

For now, we bide our time.

Thanks for reading; more next week.