April 2, 2009
How to Survive Hyperinflation in U.S.
It is our belief that Americans need to take steps immediately to prepare themselves for hyperinflation in the United States.
As an American who is concerned about hyperinflation, your number one goal should be to rid yourself of U.S. Dollars, bonds, treasuries, and other dollar-denominated assets. As the Federal Reserve prints trillions of dollars to fund U.S. bailouts, stimulus's and other government spending, these assets will lose their purchasing power.
We believe there will soon be a rush out of the U.S. Dollar and into real things. Because many Americans are afraid to buy stocks and Real Estate after the recent collapses in the stock and housing markets, it is our belief that precious metals will become the new hot asset class to invest in.
Gold and Silver have been accepted as real money for thousands of years and could replace the U.S. Dollar as the ultimate safe haven for Americans to store their money.
Gold and Silver are very liquid and tradable. With a high value to weight ratio, they are easily transportable. They are durable and can be divisible into small units without destroying their value. They are also easy to weigh, measure and count. Most importantly, their supplies are very scarce and they can't be printed out of thin air like paper money.
For those who don't wish to hold all of their money in physical Gold and Silver, there are several Gold and Silver ETF's available to purchase with any brokerage account. For risk tolerant investors who want to become wealthy during the next decade, we believe you should research Gold and Silver mining companies. We profile Gold and Silver mining companies on a weekly basis that we believe could prosper in an inflationary environment.
During a period of rapid inflation, we will likely see prices of food, clothing, and other necessities go through the roof. To battle rising prices, there is a possibility that the government could implement price controls which could lead to shortages and empty shelves at retailers.
To prepare for this event, we believe you should stock up on canned foods, bottled water, medicine, toothpaste, first aid products, clothing, and any other necessities you will need in the years ahead. Worst case scenario, if you don't use an item, you will most likely be able to barter it for something else.
To further prepare for food shortages, you should look into the possibility of planting a garden or better yet, starting a farm. There is a lack of farmers in our country and we believe Agriculture will be the second hot industry of the next decade, behind Gold and Silver mining. We also profile Agriculture companies on our stock suggestions page that we believe could prosper in an inflationary environment.
It is important to look for ways to reduce your living costs as much as possible in the areas of housing, transportation and entertainment, while looking for ways to increase your income. Use your extra savings to purchase Gold and Silver while developing an inventory of necessities.
If you have any debt, try to refinance the debt into smaller monthly payments over a longer period of time. The good thing about hyperinflation, your debts could effectively get wiped out if you have the opportunity to repay them with depreciated dollars. On the flip side, don't loan money to anybody.
Although Real Estate prices could rise nominally during a period of high inflation, Real Estate is likely to continue losing value when priced in Gold and Silver. If you must own Real Estate, it is a good idea to get as large of a mortgage as possible for the reason we just discussed.
It is also important to take steps immediately to increase your security. As hyperinflation starts to spiral out of control, there is a chance we could see civil unrest and riots in major cities. If you live in a highly populated area, consider moving to a safer community in a more rural area.
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