What to do with savings

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Mo36's picture
Mo36
Status: Member (Offline)
Joined: Sep 4 2012
Posts: 1
What to do with savings

I live and work in Germany. Any advice on what exactly to do with savings?

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1988
In my three years on this site,

In my three years on this site, I've seen this question constantly asked. Interest rates hover just above zero for all but the riskiest investments. Real Estate has become a nightmare as homes lose value but morgages do not. The stock market is rigged for all but those who skim in microseconds. Goverment bonds can and will default due to currency debasement and pension fund obligations. Where to invest?

Here are the basic ideas the site members suggest, over and over again.

1. Invest in food resiliency. (anyone who know me knows why I put this first) This can take the form of a pantry, a deep larder, a kitchen garden, raising chickens, up through a small farm. Some of these investments are in time and skill, like learning seed saving. But necessities like food are going to become very expensive with the recent drought. We can see food inflation all around us. Why not lessen its bite?

2. Invest in energy resiliency. There are many ways to do this but they fall into two categories: energy efficiency and energy production. Energy efficiency can mean anything from more efficient appliances (the refrigerator gets you the best return), to low energy use lighting - but it can also mean things like natural light, natural ventilation, insulation, passive solar heating or other means of alternative heating. Energy production can be (Dogs-In-A Pile's favorite investment) solar panels, wind power, small-scale hydropower, biosiesel production.

3. Hold physical precious metals. When the supposed gold reserves of the entire world are bigger than all the gold ever unearthed...somebody's lying. You don't own the gold unless you hold the gold. Gold ETF's are also subject to something called contango, where short-term traders raid investors. And silver, the "poor man's gold" is within just about anyone's reach.

4. Retrain for a lower-tech way of supporting yourself. There's probably not a bright future for certain professions, like SUV salesmen and manufacturers of luxury items. When the whole world is on austerity, people who know how to provide necessities have an edge. Right now your interest in chickens, woodworking, sewing, blacksmithing, or horses might seem like a hobby, but if we all end up like Greece those skill may prove essential.

RJE's picture
RJE
Status: Diamond Member (Offline)
Joined: Aug 31 2008
Posts: 1369
...besides Gold and Silver if

...besides Gold and Silver if your focus is in the Oil space, and you take opportunities such as Gregor gives us in his essays when he explains that Oil cannot essentially go below $80 bucks a barrel, and his numbers are solid then you play this opportunity when it presents itself to buy. It goes lower then buy some more. I know this, it is highly profitable and easily out paced the price for Gold this past year if you risked some capital. So however you decide to do your investing just know that energy and food are excellent ways to make money and buy more physical Gold.

I am not in the market right now other than being in Physical metals (my insurance and safety net). I DO NOT trust this market at all, took the statistics that Chris gave for the month of September very seriously and could care less if I miss or not. I may actually short Oil here but I need the S&P to cooperate a little bit more before I risk some cash. My ears are pinned back because of a recent article by Bob Janjuah and the writings of Mark Grant to name just a few of many who I respect. Chanos and Pettis, w/Mish have me NOT believing numbers coming out of China that are already horrible numbers. I like Gordon Chang too very much and he guaranteed long ago that China was going to be in serious trouble. Lastly, Chris having Japan as his Black Swan event for later this year, and admittedly thinking he was early so perhaps early next year we'll see trouble their. Then the U.S. fiscal cliff issues due to blow up later this year into next has me gasping as the United States Government are truly the biggest bunch of pansy asses I have ever followed. Not a true American in the bunch. My hair cutting Lady (I just can say hairdresser because, well, I am the John Wayne type. LOL) has a beat on things better than they do.

The most important thing to do now is plan for 6 months if you are able in preparation to handle your families emotional needs. That being pay down debt, pantry and freezer is full, and pay utilities ahead if possible. Prepare as though the worlds supply chains all go down at once, and 6 months will probably be enough to handle most every situation.

Safewrite has sensibly explained everything so well. I'm sure you all do this but I waste very little food, and cook foods that if leftovers are on my plate I can stab at during the evening or eat for lunch the next day. So I have packaged two chisken breast, not three or 3 pork chops not 4. Things like that.

Lastly, catch a ball game, it always brings my Grandfather, Father and Mother to the forefront of my thoughts as we all seem to be enjoying a game together even though they are long gone as Cabrera and Fielder seem to put many pitched balls these days. I hear my Grandfather speak of raising his kids during a Depression and the worry he had with three son's in WWll. My Mother, I can only tip my cap to that most feminine German spit fire (she was lippy too and had Pops backing her so, well, I shut up. Parents were allowed corporal punishment back in the day and consequently never applied it but it was there) who somehow, after a privileged life, managed to raise the family she did. Truly a gifted and splendid Woman. She and my Wife were very close, and my Lady is frankly a gift, a dear friend, and well tended too. I wouldn't want to disappoint those who came before me, and never gave up, believed in this country, and just managed to put one foot in front of the other as every day was a good day.

You all matter, are leaders, and I respect each and everyone of you.

Best Regards

Go Tigers

BOB

PS: Hey Arthur, you working on modifying the ant yet, honey bee? Forget about the Ape Arthur, again thats been tried and maybe we need to re-think this a bit.

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