We have all seen the latest price increases, especially in fuel. About two thirds of that increase can be traced to the dollars declining value. In trying to postpone an inevitable recession, the federal reserve has failed it's primary mission of maintaining the Fiat dollar as a store of value. (Actually, Fiat money has never been a good store of value.)
The oil price problem is a dollar problem
In 2000 a barrel of oil cost $23.32/€25.57. Today that cost is $108.98/€70.50. Copper, lead, and other metals are climbing in cost for the same reason. Partially because of increased demand and partially from our devalued currency. It's not the oil companies, it's our own government that shares much of the blame.
I hate to sound like an alarmist or some tinfoil hatter, but lately I have been investing my money into things other than dollars. Other people I know are putting their money into investments that are traded in Euros and other foreign currencies. Considering the price increases, 22 rimfire ammo has been a good investment. I have seen my stores of it increase in value across the board by over 10% over the past year or so and some by almost 20%. 7.62x39 I bought years ago has tippled in value. I have been buying guns now as a way to store value. (Ruger MKIIs and 22/45s are my current safe investment. Keeping a steady eye on the used market for good deals.)
I have been buying scrap lead not only for casting boolits, but as a relatively easy way to store currency. By smelting it into ingots I instantly increase it's value and the price of lead has been going up as well. Sure you need allot of it to have any serious value, but something is better than nothing.
I still have investments in dollars, but even my safe investments don't feel safe enough to me. I have been looking at foreign investments like others have been doing.
So what does everyone else think and/or what have you been doing?
The oil price problem is a dollar problem
In 2000 a barrel of oil cost $23.32/€25.57. Today that cost is $108.98/€70.50. Copper, lead, and other metals are climbing in cost for the same reason. Partially because of increased demand and partially from our devalued currency. It's not the oil companies, it's our own government that shares much of the blame.
I hate to sound like an alarmist or some tinfoil hatter, but lately I have been investing my money into things other than dollars. Other people I know are putting their money into investments that are traded in Euros and other foreign currencies. Considering the price increases, 22 rimfire ammo has been a good investment. I have seen my stores of it increase in value across the board by over 10% over the past year or so and some by almost 20%. 7.62x39 I bought years ago has tippled in value. I have been buying guns now as a way to store value. (Ruger MKIIs and 22/45s are my current safe investment. Keeping a steady eye on the used market for good deals.)
I have been buying scrap lead not only for casting boolits, but as a relatively easy way to store currency. By smelting it into ingots I instantly increase it's value and the price of lead has been going up as well. Sure you need allot of it to have any serious value, but something is better than nothing.
I still have investments in dollars, but even my safe investments don't feel safe enough to me. I have been looking at foreign investments like others have been doing.
So what does everyone else think and/or what have you been doing?