Finances question
 

Hey, new member here. I just recently jumped in on the gold market after becoming bearish on the dollar, and the US in general. I'm a single guy, I make roughly $45k a year in a very stable job (I can't be fired, even if I wanted to be - if I lose my job its either due to medical or the SHTF). Here's the breakdown:

- $15k saved in a non-IRA retirement plan (non employer matched)
- $14k saved in an online 5% interest bearing savings account
- $5k in physical gold
- I save roughly $1k a month - half savings, half retirement plan.
- I have no debt, save for my Corvette (which I have $12k equity in) and $15k in 3% interest student loans. I'm hesitant to pay off the loans as I earn more money in the savings account than what I get charged on interest.

That being said, I'm uncomfortable with that amount of FRN's in the bank, getting eaten away by inflation and the dollar's growing weakness. Do you guys recommend throwing half my savings in the stock market, in a mutual fund, more gold (or silver), or somewhere else? I have guns and plenty of ammo. If (or when) the SHTF I can take care of myself - being single has its benefits. I'm not all that afraid of risk at my age (26).

What do you suggest?

Re: Finances question
 

Congrats on the savings, really.
It depends on your tolerance for risk vs. reward.
Best return without options etc. (which I don't use) would be junior mining stocks and warrants. The juniors haven't taken off with this run up yet like the majors. The risk is a general market sell off, they will behave like equities and drop. In the depression this sell off was limited and then they shot up for several 100 percent.
Consider Goldmoney.com for your liquid savings.
3% loan is a gift, don't accelerate payments.
Good luck.

Re: Finances question
 

Hi RedRider,

Since you seem to be looking for honest advice, I will be blunt: with regards to SHTF scenario, you can forget the "equity" built up in your Corvette. Aside from the fact that cars tend to lose their value very quickly (10 years to go to zero), the value of cars in general is sure to shift dramatically as gasoline becomes more difficult to obtain. I suspect the value of a vehicle will become directly proportional to its fuel efficiency.

As for the FRNs, I'd say sitting on a big pile of them is quite risky. Gold is great, but it sounds like you need to diversify into silver, and maybe start hoarding supplies such as canned goods, water, etc. As Rad mentioned, playing the junior miners might also be wise, if you can handle the stress.

Re: Finances question
 

Yes, I realize the car is a terrible investment. Sometimes you have to be irrational and enjoy life while you can - if you can afford it! I'm comfortable with the amount that I save every month, and that's how I justify the expense.

Thanks to both of you for the advice. If there's another correction coming soon, I'll probably buy into a larger stake in PM. Otherwise, I'm going to look for more goods that will hold their value (firearms/ammo are awesome for this, provided they're maintained properly). Right now I really want to get out of FRN's...

Re: Finances question
 

RedRider,

KEEP THAT VETTE. And park one of THESE next to it. That way you still have your 'fun toy' (us guys and our toys) AND you will also have a nice BOV in the long run. You can even set it up so it will tow a trailer. Get a nice enclosed one to put your vette in. The REASON I picked this one is it's an 'upscaled' version. Not that YOU need to do this, but it does give you an idea. This was 'lives' in SoCal.

http://www.goldismoney.info/forums/a...1&d=1200171988