Survival Sam doesn’t think it’s a good idea to buy gold, in spite of the economic slide we’re in and the rising price of gold. I came across an argument for buying gold, which I thought was pretty persuasive, and I tried to convince Sam of its merits. It made sense to me, and, even though I’m not in a position to buy gold myself, I was thinking some of my readers might be. Well, Sam was having none of it.
“Why not?” I asked.
“Time,” he said.
“What do you mean?”
“As I understand the reasoning,” Sam said, “a guy who bought an ounce of gold in 1973 for something like $42 an ounce could exchange that ounce of gold for $800, $900, or whatever gold is selling for today.”
“That’s right, but he’d have a lot of dollars to buy a lot more than a dinner for two at Red Lobster, which is all he’d get for his $42 today. I know that from recent personal experience because my wife and I ate there for our anniversary.”
“That brings us right back to the problem of time,” Sam said. “We don’t have 35 years to see what gold prices will do. We might see the end of the dollar by 2010, when many in power would like us to be using Ameros. We might even see the end of this country altogether by then, if not sooner.”
“So you’re saying there’s no time to buy gold and make it useful as a medium of exchange.”
“Not unless you bought an ounce of gold today and were able to exchange it for $2,500 in September,” Sam said. “Of course, you never know. That might happen., and I may be a fool for not buying gold. On the other hand, in September, if I exchange the gold I have, then a coin dealer has my gold, and I’ve got a bag of essentially worthless paper.”
“But you could buy things with your paper money in September that you couldn’t buy with your ounce of gold,” I said.
“Perhaps,” Sam said. “But why deal with a third party by involving a coin dealer? Most of all, why wait to buy things then with paper that’s declining in value when you can do it now? Right this minute I can buy an awfully lot of potatoes, beans and rice for much less than the price of an ounce of gold. I don’t need an investment broker or coin dealer. I’d rather buy goods to help me and my family survive in September and beyond, while others are wondering where they’ll get their next paycheck or even their next meal.”
“Isn’t that short term thinking?”
“What if a short term is all we have?” Sam asked.
“You’re just not willing to consider buying precious metals, are you?”
“I didn’t say that,” Sam replied. “I’m a firm believer in buying lead.”
“Ammo,” Sam said. “We’ve talked before about having it on hand as a bartering item.”
“Oh, yes. I’d forgotten.”
“I suggest trying Winchester SXZ .45 ammo from Bass Pro Shop. You get two kinds. Some is for target practice, and some is high performance, hollow point for personal protection. Use the training ammo for its intended purpose without dipping into the good stuff for those special occasions.” He grinned. “Plus, Winchester SXZ is specially made for less fouling of your handgun barrel.”
“I guess I’d better put the Bass Pro logo where my readers can see it,” I said.
“Good idea. When they go to Bass Pro’s home page, they can type Winchester SXZ in the search box and go from there.”
“So, go with food or lead for survival rather than gold, right?”
“That’s right. Remember, when it comes to making wise investments, think survival.”