Gold is zooooming again. On this run it may hit $2000.
Why? An increasing number of smart people think/believe that the world’s economic and financial system is in deep trouble.
What kind of trouble? You know the list: Global economic depression. Financial contagion. Sovereign bankruptcy. Hyper-inflation. Financial collapse.
So, why are people buying gold? Personal experience tells them it is the best way for them to preserve their wealth (and by extension: options/flexibility) during periods of uncertainty.
While buying gold is a smart investment decision, it’s neither the only, nor the best way to hedge yourself against future global failures.
More than just Economic Failure
It shouldn’t be news to you, but we live in a economically interdependent world. Think about that for a second. Most of us couldn’t get through an hour without relying on something that’s provided by the global production system. We are completely and utterly dependent on it. So is our community, our state, and our nation.
What this means is that any economic failure, of the level and type we are likely to experience (we get news to this effect nearly every day now), will crash more than the price of stocks and bonds. It will also likely outlast any cache of food/ammo you stashed away for a rainy day.
How? Here’s the list: Political chaos. Supply system disruptions/failures. Guerrilla warfare. Hyper-crime. Ubiquitous corruption. Totalitarian nationalism. Police states. Rationing. State seizures (either due to corrupt state officials or by decree). Shortages. Failed states.
As you can see, it’s a long and ugly list.
More Precious Than Gold
IN an environment this uncertain, an investment gold (while very useful) isn’t enough.
What you and I need is an investment more precious than gold: A Resilient Community.
A community that provides everything that a pile of gold cannot. A stable environment that produces food, energy, water, a security. An environment supported by a network of people that actually care whether you succeed or fail.
So, go ahead and put some of your money into gold. However, if you are exceptionally savvy, put some of that money into a Resilient Community. It may be the best investment you ever make.
Here’s a potential rule that we should try to quantify: for every ounce of gold you buy, invest an equivalent amount into a resilient community.