Preparing for your next investment with Gold and Guns

Preparing for your next investment with Gold and Guns

Rental Property Investor · Lehi, UT · Member since 2020 · 159 posts · 158 votes

In these unprecedented times many can be left feeling stuck, not knowing what to or how to invest. Others fall into analysis paralysis waiting and anticipating the absolute best deal to come along only to miss out on many home runs. 

What really worries me as that while I am searching for the best deals the Fed is Printing more and more money! With the CARES ACT passed and in full effect our national deficit is looking to hit 30 Trillion Dollars in the near future! In addition with many business's slowing down production, new jobs at a loss and unemployment claims at an all time high I believe the worst and best is yet to come. 

So how do we as responsible individuals who have saved and waited for a time like this to come along hedge against the fed and its endless printing? Guns and Gold (silver included). 

Shout out to David Greene who wrote an article about this a few days ago as well as he recalled speaking with the great Robert Kiyosaki on the 5 G's Gold, Gas, Ground, Guns and Grub. Although I have never heard Robert talk about those items in the past it was something that has always rung true to me as when I heard the Cares act was passed and sounds of another stimulus package I simply moved more capital into these two categories. 

In my professional career I mentor many NFL Players and when I tell them Gold and Guns they immediately think Rolex Watches, Gold Chains and Uzi's and although all are fun to have they are not the best value for your investment. Jewelry is expensive to make and therefore you are paying for more than the value of the gold. In addition when choosing what type of guns to invest in practical decisions need to be made as well. 

The three things that I really like about Gold and Guns is:

1. They are tangible, meaning, I can hold them, they are physical things that are not made up. (dont beat me up in the comments too much bitcoin lovers) Guns can also be used to put food on the table, protect your family and have a good time at the range.

2. They are in High Demand. Since the invention of Firearms they have been a must have for every hunter, tacticool joe and responsible individual who wants to protect their family. In addition gold is known as gods money as it has backed fiat currencies around the world.

3. Their value increases as pandemics or recessions take place. 

So what type of firearms should I purchase to hold while my cash is devalued in my bank account? 

Ar-15's

Ar-10's

Military Pistols such as 

Beretta M9 

SIG Pistols

Glock 19,17,34,45

Shotguns

Mossberg 500, Remington 870

Ammunition

556, 7.62x39 9mm 45ACP 308 Win 22LR

In my opinion, you wont have any problems converting these physical assets back into cash when the right deal comes along.

Now I know what some of you are thinking, putting my cash into these items makes me look like a doomsday prepper and that may be a bit true but what does keeping your money in a bank that you are earning .25% back on while the fed prints another 10 trillion dollars say about you?

Dont care about what other people think, be smart with your fake money and buy physical assets that will appreciate on a smaller scale while we see some awesome deals come up in the next 6 months then liquidate them back to cash and buy those assets. 

Thanks for taking the time to read and looking forward to connecting with you all in the comments!

Kody Thompson is the CEO and founder of Kaeo Capital. 

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  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Disclosure: I own both of these, so take the following with that in mind.

    There are major problems with both. Physical gold is very difficult to sell, I'd say even compared to real estate. The real estate transaction takes longer, but with gold you have to find someone to buy it, either in person or online, transport it to them, and take a hit in order to compensate them. 

    Firearms, you always run the risk of a scenario like Canada implemented, banning AR's or doing a forced "buyback" at whatever price the government wants to name. Additionally, you have to store, maintain, and transport them. Not everyone can purchase a firearm, either due to past criminal history, age, physical location, or what have you. They also cost a ton of money to use, ammunition isn't cheap!

    And, of course, neither of these investments produces cash flow, nor can it be easily leveraged like real estate.

    I do agree with the sentiment that taking these too far does get one into doomsday prepper-land. The advantage of cash is that it's liquid, everyone accepts it around the world, FDIC insured (if it's in an FDIC bank), and is very easy to transact with.

    I think firearms are better seen as tools for self defense than investments, unless one is an experienced collector or trader that can run a business. Gold is cool and, in the long run, seems likely to appreciate, but it's also difficult to transact with and is not particularly liquid. Both require fairly expensive storage as well.

  • Rental Property Investor · Lehi, UT · Member since 2020 · 159 posts · 158 votes
    6y

    Taylor, Thanks for your response I really appreciate you taking the time to read my post and I do agree with you on some of the challenges of both. 

    However my original post was using these to hedge against inflation as a temporary place to transfer your money into while another 9 trillion is pumped into circulation which will inflate the price of everything.

    I believe that we should see the real recession coming at the start of 2021 as more people are unable to keep up with living expenses as salaries remain the same. This is when the great deals will be coming and when selling the gold and guns to purchase cashflowing assets will be ideal.

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