Alternative Stores of Value


December 5, 2012 by tjefferson2076

I came across this link recently describing 4 alternative stores of value on zerohedge:

The author described four alternative stores of value besides gold and silver:
1. Firearms and Ammunition
2. Watches
3. Rare Coins
4. Agriculture Property

This is a good intro.  Many of us DO NOT have the resources to invest in significant quantities of gold and silver.  So what can the common man do?  First of all, one of the best ways to invest in yourself is to pay off debt to increase cash flow.  Federal reserve policy has inflated the price of stocks and bonds to nearly 0 return over the near term.  If you have unsecured debt, a student loan, a mortgage at 5, 6, 7 percent of more, you can make get that return by paying it off early.  This also will increase your cash flow over the long term.

Next, buying things that you use on sale.  Stock up.  I am not saying that you become a hoarder, but it makes perfect sense to go and buy non-perishable and food when it is on sale.  All people who choose to live outside of the world must strive to be independent.  Some have a years worth of rations.  I say that you must have at least 2 – 4 weeks of rations (food, water, soap, etc) on hand, and adding to these when they are sale is your first step towards storing value since the fed will guarantee that the price will be higher next year.

Aside from debt and necessities, here is a list I came up with to consider investing in to increase your net wealth independent of the manipulated system:

1.  Gold and Silver – Junk Silver (pre-1965 coins) tends to have the smallest markup over spot.  Although most of us don’t have the money to go out and stockpile gold and silver, a silver dollar for your kids birthday is a good way to give them something of value.
2.  Guns, Ammunition, and Reloading Supplies – nuff said, I have never lost money on a firearm over time, and I have 9mm ammunition that I purchased for 8.00 a box only a few years ago.  Now it is hard to find it under 11.00 a box.  Keep it dry and it never goes bad.  With respect to reloading machines and supplies, go try and buy a used Dillon press – you can’t and if you can find one, it is not that much cheaper than you can buy new.  Dillons price goes up every year.  Lead bullets keep place with inflation, a good means to stockpile commodities.  Guns, ammo, and reloading supplies are as good as GOLD.

3. Watches – this only applies to high end watches.  This is something out of reach for most of us, but the price of high end watches – such as Rolex and Cartier never lose there value if kept in good condition.  They are easily pawnable and a good way to transfer wealth to another individual or out of the country.  I’ve tracked Cartier watches and have noticed that a Cartier watch bought in 2009 is selling for the same price used in 2012.

4.  Jewelry – this is another poor man’s way of investing in gold and silver.  Designer jewelry from such designers as Tiffany and Cartier actually appreciate and hold their value much greater than non-designer.  However, the entry price is often out of reach for the average man.  Non-designer jewlery hold’s the melt value, and unless the diamonds or jewels are really rare, they do not add much value to the trade in value.  However, this is a good way to make your wife happy and store value at the same time.  I don’t know about you but my wife frowns on spending money on guns and ammo, but could care less how much I invest in her jewelry.

5. Tools – tools always hold some value.  I am not just talking craftsman, but chain saws, generators, sewing machines, etc.

6. Alcohol – Alcohol by it’s nature preserves for a long time.  A bottle of Jack Daniels can go along way in trading a neighbor for another items of value. Besides if TEOTWAWKI actually happens, or if Obama gets a third term, I am going to need all the booze I can get my hands up.  Make sure you stock up when it is on sale.

7.  Knives – probably in the same category as tools, but good knives hold value, are small, and can act as tradeable currency the same way that ammunition or junk silver could.

8.  Furniture – I am not talking the junk furniture from IKEA or Walmart.  If you drive around town, you will find a used furniture or antique store somewhere.  If you buy furniture buy solid wood furniture, not made in china particle board junk.  Spend some more and buy some solid wood Amish furniture, it will last you a lifetime and will retain it’s value if you decide to upgrade.

9.  Cookware – same thing as furniture.  I am not saying to go to Sears or Walmart, but go out and buy good cookware and knives once.  A good knife set and cookware will last you a lifetime and can be put on ebay if you choose to upgrade later.

10.  Nickels and Pennies – I wrote another post on this Keep all nickels and pennies, it is the cheapest way to stockpile copper and nickel and worst comes to worst, they have a built in guarantee of value – the face value.

11. Pay off your mortgage – this is the poor man’s way to acquire agriculture land. Many of us can’t go out and buy property, but if we paid down our mortgage we would increase cash flow and have a greater ownership in our property.


One thought on “Alternative Stores of Value

  1. bfranklin2076 says:

    Pretty good list. Jewelery, Cookware, and certainly Alcohol check! I need to work on the rest.

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