Has anyone taken any steps to protect their assets, in the event of the USD collapse?

[DeJames]

If (or when, depending on your opinion) the USD collapses, I'm certain we would feel effects in Canada. I'm wondering if anyone has actually taken steps to protect their assets/portfolio.
I am reading a lot about buying gold/silver. Has anyone actually done this?

[vibrantflame]

Well personally I have no assets, so fortunately in that sense I won't have to worry too much, will just have to worry even more about providing for my family.

[JD in Van]

Buying gold is kinda senseless at this point. It's cost to purchase is so high and likely eventually to reduce. If the USD collapses it might actually end up as a net benefit to our country too given it would make us the most stable and perhaps default currency in North America.

I hope no one's holding American Dollar accounts though, since that's probably going to ultimately be a loss or a wash unless our own dollar tanks sometime soon. You could avoid investing in industries that largely are funded by importing to the use (lumber comes to mind).

But I wouldn't worry about it so much really, ultimately. I'm far more concerned about housing prices here in Vancouver continuing to hold at an impossibly high level.

[ashedfc]

Check most of my post, I have been telling this since last couple of months...
Its never too late to get out of US Dollar............... & the big question is to get into what?
You have to evaluate which one is the safest asset.....
1. Currency - all of them go down alongwith the US dollar, some more some less. however, if you have to have a currency than have a look at Swiss Franc (its the only one quasi gold backed), all others are just paper.
2. Commodities - Oil, Gas, Copper, Food etc have storage issues & quantity & they are not ideal inflation hedge.
3. Gold/Silver- the most ideal place to be, they are precious metal for a reason, ideal inflation hedge, store of value, etc.
We are heading for a currency collapse & hyperinflationary environment, & the upside for Gold/Silver is unlimited.. If you find Gold expensive now, wait till it reaches $2000 before the year end. Look at Silver, it was $18 in Aug, today its $40.. its all about preparation for hyperinflation via currency collapse..

[ashedfc]

Well personally I have no assets, so fortunately in that sense I won't have to worry too much, will just have to worry even more about providing for my family.

Not having asset is the worse place to be in such an environment, as essential commodities will become expensive & salary raise will not keep pace..
Wait till Gas becomes $2/lit at the gas pump, & grocery prices starts doubling, its all coming & its just a matter of time.
We are getting very scary reports.(like Israel attacking Gaza, Libya is already going on, Ivory Coast is in the hot spot, Syria is next, its all gearing up for an attack on Iran & WW3 over the near future, somewhere by 2013).... Now it cost $40 for an ounce of Silver. As a doomsday preparation, buy an ounce of Silver, later on you call the Silver when it reaches $250/oz & buy food/grocery.

[KellyC]

It is going to happen. People who have gold will be in the best position.

I have also been stockpiling food and water and just every day things that we need. I'd rather fork out the money now and not later when the prices are insane.

[liezlranoy]

Thanks for the update.

[brunt]

If (or when, depending on your opinion) the USD collapses, I'm certain we would feel effects in Canada. I'm wondering if anyone has actually taken steps to protect their assets/portfolio.
I am reading a lot about buying gold/silver. Has anyone actually done this?

If/when you consider buying, there are many possibilities. Learn what the "spot price" is (http://www.kitco.com/market/cad_charts.html), and buy based on that price.

Don't overpay. Don't pay a premium because you are told that a given coin, medallion or whatever is "rare". Rarities are for experts. You need years to learn enough to spend the extra money required. Buy your metals as close to the spot price as is humanly possible. I never paid more than 5% over spot.

There is also the possibility of buying "paper gold/silver" in ETF's. These save you from having to physically haul and store the metals, but in the end, they are only paper. If you are worried about financial Armageddon, then you don't want paper. If you want a low maintenance place to put your money where it is somewhat safe assuming the sky doesn't really fall. It is also far easier to sell than physical metals.

Another thing - it takes nerves of steel. The price can fall then turn right around and pop back up a couple of days later, way worse than the stock market. Make sure you know why you are buying, and resist the temptation to look five times a day at the price. You will give yourself an ulcer in no time flat.

[DeJames]

Thank you for you insight, Brunt.
I honestly think my hubby secretly wants to be a pirate and bury some treasure in our backyard.

[ashedfc]

Crisis averted, no need to panic now. But the problem is not solved, its just papered over (again by money printing & going into more debt).
The solution itself is the problem.. for every situation, money printing is being practiced & being recommended. There is no fiscal responsibility at the Govt. level. Its being done in the name of bailout, stimulus, reconstruction, conservatorship, etc, etc, etc.
The end result is the fiat currency system is getting destroyed gradually (& very few informed are aware of, rest of the population is still sleeping).

[khipson]

We don't have a lot of "assets" to try to protect... but my thoughts on people buying gold/silver is that it depends what you're trying to do and what you're expecting to happen. If you DO plan to buy precious metals, buy them for real, not just a slip of paper saying you own a share of the gold in someone's vault... oh, and if you buy valuables and keep them in a safe, don't tell anyone about it like that guy in BC did!

On a practical level, if you're expecting that a USD collapse is imminent and you're afraid of that leading to a societal collapse... then I don't think gold bricks are going to do anyone much good. You want something smaller, more tangible, that you can use as a bartering currency, but that doesn't come in blocks worth a hundred times more than what you're trying to buy.

From my perspective, I'm not worried about accumulating assets, but what IS on my radar is financial prudence, smart shopping, building a pantry, and trying to fend off the effects of inflation by stocking up on things when they are in a sale cycle. Also making community connections (ie farms, gardens, butchers) so that we can help each other out if/when times are tough. That, to my mind, is a smart approach to almost any "what-if" scenario that we might be facing. You could say, I'm more concerned about rapid inflation and the costs of food than I am about zombies. LOL

[Mia001]

if i remember well , gouv needs to have the stock of gold to cover the paper money they print

[DeJames]

Very well written khipson. What happened to the guy in BC?

Mia001, I thought that too about having enough gold in reserve to cover the paper money. I just read that the last audit on Fort Knox was 2010 by KPMG, however, at no time did they actually see any physical gold. The report said that the last time the physical gold was audited or visually seen was in 1956.
Although, one can't believe everything they read on the internet... makes one wonder nonetheless.

[ashedfc]

if i remember well , gouv needs to have the stock of gold to cover the paper money they print....

You thoughts are true, this is how money was suppose to be!!!
But in 1971, they changed this fact, (in a stroke of a pen, president Nixon changed the Gold standard to pure fiat money, which means No Gold backing).
And since then (1971 till date & I believe till fiat money destructs itself) money is not backed by Gold. The only country in the whole world which has some king of a correlated backing is the Swiss Franc (currency of Switzerland), this is why all the elites money/ secret accounts/ are in swiss banks..

Now they don't have a mine a ounce of Gold to print it equivalent money..
Before 1935- It was $20 per ounce of Gold (so to print $20USD, one has to mine an ounce of Gold), or else printing wasn't allowed & was considered counterfeiting.
From 1935 to 1971 - It was changed to $35 per ounce of Gold by President, Franklin D. Roosevelt (35$ printing required an ounce of Gold)
From 1971 onwards - It was removed completely from the Gold Standard, so no more Gold backing, & Govt could print as much as they want, although fiscal/monetary balance was required.
Sine USD is the world reserve currency, all other currencies followed the US way... either directly or indirectly...

Now we are in the biggest experiment of money printing in history. Everyone is printing beyond limits (USD/EUR/YEN/GBP/RMB/INR/CAD/AUD/NZD/all are in the same boat.. some more some less)..
The more they print the more money comes in supply, & it devalues the existing money in circulation.
For example: Before 1935 - 1oz Gold was $20 & After 1935 - 1oz Gold became $35, what it means is you need to get $15 more for every $20 prior to the change, or US Dollar just lost 75% of its value, in stroke of a pen (Presidential order)....... hope this clarifies your doubt

Google it, internet has changed the way information/facts used to be hidden in the past. Get informed, & protect your assets.
Govt.'s are not going to take care of anybody, How can they? They can't take care of themselves.....

[Mia001]

this was something i remembered from my economy courses.....thank'S for the clarification....very interesting