Questions like “what should I invest in as a prepper” have become more common following the coronavirus pandemic. And while some find this laughable, claiming that there are no investments specifically for preppers, I hold a different opinion. Actually, there are certain investments that true preppers should invest in and others that they shouldn’t.
Let me explain.
As preppers, we are not exactly working towards the prevention of disasters. The best we can do in this regard is avoid finding ourselves in man-made SHTF scenarios, but that’s about it. The main target of prepping is to survive the hard times. It is to flourish when the chips are down, or at least live in fair enough conditions.
Now, are there any investments that have these characteristics too? Yes, there are things you can invest in that will retain their value and even grow bigger when the world goes crashing. With the prepper investments we are to look at below, you don’t have to bother about your investments losing value if the world falls sick again.
What Should I Invest In As A Prepper?
Gold, silver, and other precious metals have value because of the simple economics of demand and supply. Supply of these resources is finite, which is why they are scarce, and that’s why they are better investments for preppers than artificial stores of value like fiat currencies. A major benefit of investing in these metals is they are a hedge against inflation. And it sure looks like inflation is in the offing.
The Federal Reserve has recently pumped trillions of dollars into our economy, and experts have predicted that this will cause goods to rise in price. This will lead to a fall in the purchasing power of the dollar. And in a severe inflationary economy, the currency is surely not where to hold value.
Invest in precious metals now because they are still low compared to where they’ll be in a couple of years. These metals cannot be printed the way dollars are printed. So, you can be rest assured it will never become so excess in circulation that it loses value. Invest in gold and silver now and reap massive benefits with time.
Cryptocurrencies are a much easier way of transferring value between people. A cryptocurrency is an online coin for transactions. These coins eliminate the need for physical holding and storage. They are also operated on decentralized platforms, and the government can’t keep track of your financial transactions. Which prepper doesn’t want this?
Besides, crypto can never be excessive in circulation. There are mechanisms in place that ensure the supply is always regulated.
Coins line Bitcoin and Ethereum are currently the most successful in the world. The former has already passed the $50 000 mark, and experts predict more growth over the years. Ethereum is the second most valuable, and while it is far behind Bitcoin, there are strong speculations that it will be very profitable with time. It is an even easier option to invest in now since it’s much more affordable.
Think of a payment method that’s not affected by disasters, can never be excessive, and is free of all Government regulations. What’s better?
Homeownership has always been a major means of building wealth throughout history. According to the Survey of Consumer Finances, the average homeowner possesses a household wealth of $231 000+, while the average home renter, on the other hand, has a household wealth of just $5 200. The difference is striking, but remember that time, different markets, and financial situations are key factors when considering if to buy or rent. There are times that renting is better than renting.
Real estate has always been believed to appreciate over time, but the coronavirus pandemic proved otherwise. House prices fell, but there were hardly any physical commodities that didn’t get a hit then. Besides, property prices will not stay down forever. They will always grow with time. If you have the cash thus, I suggest that you invest in real estate. There’s always a profit; aside from that, you and your family are guaranteed shelter.
The best account for storing funds for rainy days is the high yield savings account. They are safe and liquid, and they give returns on your savings, although at moderate rates. The main advantage of this prepper investment is that you can never lose your funds except if the bank itself stops functioning. That’s rare in this modern-day world.
Traditional investments like IRA and 401k are risky initiatives, made even riskier because America is yet to get out of the coronavirus-influenced meltdown fully. Protect your wealth instead. Open a high-yield savings account and start investing in it until we are very sure of our economy’s direction.
Note that the main reason I’m suggesting this is portfolio diversity. You can always invest in the first three options mentioned. I strongly think precious metals, crypto, and real estate investments are much safer than traditional schemes.
Whiskeys and Wines
Wine, whiskey, and other alcohols have proven to be very safe and profitable investments. The laws of demand and supply shape them, and it is great that the supply of good whiskeys and wines is limited. There is a limit to the volume of barley that can be mashed or malted, just as there’s a limit to the width of land on which you can grow grapes. Scarcity is a major part of wines and whiskeys.
For example, Scotch whiskey has to spend at least three years in oak barrels within Scotland before they can be exported. Scotland has little space, yet aging whiskey demands a lot of it. Whiskey is really regulated. Another example is that Pappy Van Winkle releases just 7 000 cases every year, and it is comfortably among the costliest bourbons on the market.
Wine and whiskey have excellent utility, and they are scarce.
Answer: What Should I Invest in as a Prepper?
Prepper investments are simply investments that will withstand the test of time and disasters. You don’t want to invest in very fragile assets. Doing so will not only cause you losses when disaster strikes, but it also betrays what you stand for as a prepper.
Let’s hear from you: what should I invest in as a prepper? Have I missed any good investment?