What to convert cash to if anticipating hyperinflation?

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This might have been beat to death in some places. I've not read every thread. If it's already been beat to death, please point me to the place of beating so I can go read. ;)

What I'm getting at is this. If someone happened to have some cash now, (I'll throw out a hypothetical amount of $50k, and that IS HYPOTHETICAL), sitting in a savings account right now, what might be a way of protecting the value of that cash?

I KNOW one of the first answers that will come up. And I'm not trying to discount the validity of it, just don't wanna drag it over 62 pages of comments. Gold and silver. That is noted.

I also KNOW one of the other first answers that will come up will be Guns and/or ammo. Also, I won't discount the validity of it, also don't wanna drag that one out over the same 62 pages of comments. That is noted.

And now that we've put those to rest, what are some of the next things on the list?

I heard someone online, a fellow homesteader, mention land and livestock. Land that's paid for would seem to make sense. Livestock would seem to be good in that it can reproduce itself. It's probably one of the oldest ways this world knows of preserving or even growing wealth. I'd certainly be open to comments in those regards.

The kinds of things related to food production seem to make sense. Basic equipment related to the actual tasks one would do to do said production, such as powered equipment (no, not thinking of big ag kinda stuff, more minimal to be practical but big enough to be useful), some quality hand tools, perhaps a stock of plastic for protected growing, all the way from high tunnel to small cold frame, and seeds of many kinds. There may be more you'd suggest.

A good supply of canning / freezing kind of stuff would seem like a prudent idea.

Having at least a minimal solar array and battery bank along with a decent inverter and that type of equipment would seem like a good idea.

Having a wood stove might be a good idea if wood were easy to get. (Might be here, might not be for people in other locations.)

I can appreciate a stock of stuff like toilet paper but being realistic, I'm not sure how far I wanna go with that.

So whatcha think beyond that? Or in addition to that? Or along those lines, expanding it a bit?

I kinda don't think that having a lot of cash in 2021 is gonna go well for those who might have socked away that nest egg. I could be wrong. But what would such a person do?

Would love to hear your thoughts!
 
Well, I think you covered it all. A place to live and food, medical, and protection.
I'll be enlarging our animal population this spring, possibly building another greenhouse, growing alot in ground. I continue to put up dry goods, and have for over 10 years now.
 
I would like to reinforce real estate. Rental property can make you money.

Any other thing that can help you make money.

Do you know how to weld? Get a welder and stock up on the wire rods tips etc. Things will still break and you can make money fixing them

How about machining? $50K will buy a small scale machine shop.

Do you know how to sew? Clothes will wear out and will need fixing if new clothing is out of reach.

Work boots. I keep my boots in good order with saddle soap polish and leather preservative but still have multiple spares new in the box incase of hyperinflation. In Germany people were trading jewelry for shoes. My favorite story from then goes;

Two women were carrying a laundry basket full of duesch marks and window shopping. They something in a store window and left the worthless cash on the sidewalk and went into the store. When they came out the money was still there but the basket was gone.


Not to drag this out too far.

Invest in what has intrinsic value, or can make you more valuable or what others will need.

Ben
 
This might have been beat to death in some places. I've not read every thread. If it's already been beat to death, please point me to the place of beating so I can go read. ;)
What I'm getting at is this. If someone happened to have some cash now, (I'll throw out a hypothetical amount of $50k, and that IS HYPOTHETICAL), sitting in a savings account right now, what might be a way of protecting the value of that cash?
I kinda don't think that having a lot of cash in 2021 is gonna go well for those who might have socked away that nest egg. I could be wrong. But what would such a person do?
Would love to hear your thoughts!
Here's a good one:
https://www.homesteadingforum.org/threads/economics-hyperinflation-and-more.11872/
On topic: How to protect the $50K in a savings account from being eaten alive when inflation hits.

The best advice: Do not leave it in the bank savings account!
With rates stuck at historic lows for years, this is the only way to guarantee failure.
I have found that with inflation, your worst enemy becomes your best friend.
Think about what products/services that will be raising prices the quickest and the most.
Those companies will do more than just survive. Consumer staples etc.
At least slice off a piece of the $50K and put it in their stock.
I won't mention the companies by name because that would be investment advice, but you know them well.
Think about the stuff on shelves in stores that they can't change the price-tag fast enough to keep up and are wearing the "Limit 1" sign.
 
Not knowing anything more about you than your posts, there are certain assumptions that I don’t want to make. Certain key facts, such as are you in the city or someplace rural, and what your age is are all things that would be relevant considerations in any advice. That said, your post touches on a lot of very important issues and strategies.

My focus has been on investing in sustainable infrastructure, such as items that can operate at low or no cost that can feed me or make life comfortable. If I was a bit younger, I would also list certain training in the technical trades to make my skilled more valuable. I think these types of skills and items would be a sound investment.
 
Not knowing anything more about you than your posts, there are certain assumptions that I don’t want to make. Certain key facts, such as are you in the city or someplace rural, and what your age is are all things that would be relevant considerations in any advice. That said, your post touches on a lot of very important issues and strategies.

My focus has been on investing in sustainable infrastructure, such as items that can operate at low or no cost that can feed me or make life comfortable. If I was a bit younger, I would also list certain training in the technical trades to make my skilled more valuable. I think these types of skills and items would be a sound investment.

You're right, John. I should have used my own situation as an example since that's where I am.

Age... well... pushin'60. Wife is pushin' 70. We're both doing really well but there are definitely limits to what we're willing to take on physically. We are rural, Tennessee Cumberland Plateau. Closest tiny town about 7 miles away. Closest multi-red-light towns no less than 20 miles in any direction. Pretty much farms all around, good neighbors. Pretty poor area in general but our neighbors are all "better off" then we are, which is nice, because they generally have nicer toys if someone decided to have sticky fingers. They're also armed to the teeth so I don't think most people would wanna mess with 'em. They like us and we like them. Mostly we all keep to ourselves but when we have extra, we tend to find 'em to share, and they do the same with us. Can't buy that. So that's kinda what surrounds us, even though we only have about 3-1/2 acres. Don't know if one neighbor would sell us some land or even do a long-term lease. We've tossed that idea around since it's the property across the road from us and pretty much gets no use. We have a lot of basic skills. Growing gardens, hope to be getting some chickens going shortly, cooking, canning, sewing, basic mechanical car / equipment maintenance kinda stuff, basic carpentry (have built numerous outbuildings from scratch), woodworking, probably some other stuff I can't remember to list. I'm sure there are things we can still learn but most of that kinda stuff would not have anything to do with a new career at our ages, just what can use use in the near future.

FWIW, I was reading in the other thread listed above, about Jimmy Carter and those days of 14% interest on CD's. My mom & dad took advantage of that at the time and it made a difference for them. It also makes a difference for us now, as dad's not with us anymore, as of last January. We do have some savings I'd rather not have sitting as cash in the bank. Don't really wanna talk about how much in a public forum... and that $50k number, that really was hypothetical, I really am not going to go into real amounts on here.

We have a small high tunnel (12x24) that we ordered and even paid for that we had thought would be delivered by now. Plus we have a 30x90 spot all ready for another high tunnel we're intending to put up very soon. Funny thing is, it's not even a matter of money at this point, it seems to be difficulty in actually getting the materials to put the things up. (Hope we didn't wait too long.) We do have some small powered equipment, mostly old stuff, and could get by with only that. Considering a few upgrades but nothing big. Don't have much debt, only our home, which we do not have enough to pay off, but the payments are low, and a 0.9% interest rate car loan that's not that far from being paid off. I go back and forth about whether I should just pay it out as scheduled with that low of an interest rate. I could pay it off easily. Credit cards all get paid off every month, in full. Income is mostly retirement income but we could easily add some local employment to the mix. Have been offered a job several times. Dear wife decided to retire earlier this year.

Compared to most, what I've got is small potatoes. Then again, to some, I'm probably rich. I tend to think of myself as pretty rich in the things that matter to me. I don't need a lot of trinkets, big houses or fancy cars. I'm a jeans n tee shirt kinda guy and really like things pretty simple.

Anyway, probably more than you wanted to know. LOL!
 
We added a 3000 watt solar system to our house this year to run the fridge and also the freezer. We are prepped up. We have a small hoop house(green house) in storage. We bought an extra large propane tank and had it filled.
And every day that I remember I ask my wife if there is anything she would like to have. I always try to think of anything I want or we might need in the future.
My kids told us not to send them any more money.
We don't know what else to do to protect us or our meager wealth.
 
Guess......the world is near ready for me to start teaching this. I studied this in the 60's and after the drop of the U.S. Dollar gold reserve (64') there were dozens of good and accurate books written about this. I acted on that info. and and made a truly embarrassing amount of money in the late 60's and throughout the 70's till the big meanie "Paul Volker" took the gravy train away about 82'ish. It helped being in Alaska in the pre-pipeline 70's and through the staggering real estate price explosion.

The key to building wealth in hyper inflation period is leverage. Leverage and huge real estate land investments. We were doubling our money every few weeks, was truly insane. Everyone in Alaska got wealthy during the 70's. Helped that I taught Federal Tax "Reduction" classes during that period. Feds had double and triple declining balance depreciation on capital assets. Was so totally insane. You cold buy capital assets like "Shipping Containers" and get (ITC) investment tax credits, plus double declining balance depreciation, hold the purchase for one year (LTCG) long term capital gain........and net-net-net quadruple your investment with low risk, because of 22.8% inflation.......Plus have it sheltered. Fun time to be a young man in vibrant Alaska and America.

Maybe I should sell all my old books......."How to Profit from the Coming Inflation"
 
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Very interesting, Sourdough.

Are you still suggesting "leverage and huge real estate land investments" being the key to thriving through hyperinflation?

How would you speculate that present times may differ from that which you experienced in the 60's and 70's? I'm pretty confident that some things are similar while I'm not so sure that some may be quite different today.

Honestly, I have no ambition to be rich. But maintaining simple, basic comfort would be nice.

I am very much getting the idea that cash is NOT where I wanna be, at least not long term, even now. And assets that are capable of producing an income are things that are looking the most interesting to me at this point, maybe not the kinds most people think of. Tools, for instance, particularly tools I am able to use to produce income or goods by using them.

These are thoughts in progress. But I'm appreciating the thoughts and comments here and also in the other thread pointed to above.
 
Guess......the world is near ready for me to start teaching this. I studied this in the 60's and after the drop of the U.S. Dollar gold reserve (64') there were dozens of good and accurate books written about this. I acted on that info. and and made a truly embarrassing amount of money in the late 60's and throughout the 70's till the big meanie "Paul Volker" took the gravy train away. It helped being in Alaska in the pre-pipeline 70's and through the staggering real estate price explosion.

The key to building wealth in hyper inflation period is leverage. Leverage and huge real estate land investments. We were doubling our money every few weeks, was truly insane. Everyone in Alaska got wealthy during the 70's. Helped that I taught Federal Tax "Reduction" classes during that period. Feds had double and triple declining balance depreciation on capital assets. Was so totally insane. You cold buy capital assets like "Shipping Containers" and get (ITC) investment tax credits, plus double declining balance depreciation, hold the purchase for one year (LTCG) long term capital gain........and net-net-net quadruple your investment with low risk, because of 22.8% inflation.......Plus have it sheltered. Fun time to be a young man in vibrant Alaska and America.

Maybe I should sell all my old books......."How to Profit from the Coming Inflation"
"Tell me more tell me more." (Grease the musical)
Can you share titles and authors?
Ben
 
Anything you need that you can own and keep. As much consumables as you can store and keep. The means to keep what you have.
 
If I had $50k and little to no debt I would look at freeze drying, food preservation capabilities.

Hand tools
raised beds
spare parts, filters, fluids, etc
stock up
 
"Tell me more tell me more." (Grease the musical)
Can you share titles and authors?
Ben

Sure......there is a bunch listed in this article. Survivalism - Wikipedia

Howard Ruff and Harry Browne and Robert D. Kephart, Mel Tappan, Harry Shultz, Kurt Saxon, James McKeever. I'll find others.
 
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While you said you don't have much debt beyond your home, debt is the first thing I suggest paying off with extra cash.

Others have covered the common stuff - precious metals, land, etc. I'd like to suggest augmenting your talent stack - acquire new skills. If that means taking courses at a local community college, or hiring folks to teach you one-on-one, learn new skills. Whether it's learning to work on IC engines, plumbing, electrical, construction/carpentry, personal defense, cooking, growing/preserving food, communications...the list of useful skills to have is pretty long and most people aren't experts at everything.

The more you can do, the more useful you are to others.
 
I like agricultural land as an investment IF and only if you've got the capital to keep your land payments low. The cost of farmland is ridiculous right now - at least a million for 160 acres of good farmland in my area. You won't get a loan without 40% down, and realistically 50-60% works much better.

Farmland will provide an income stream. You might not make much if you farm it yourself, but somebody will pay to rent it. Current rents near me are 225/acre on the low end up to near 300/acre. It doesn't take a ton of land to make good money. It just takes too much money to buy the land...
 
I like agricultural land as an investment IF and only if you've got the capital to keep your land payments low. The cost of farmland is ridiculous right now - at least a million for 160 acres of good farmland in my area. You won't get a loan without 40% down, and realistically 50-60% works much better.

Farmland will provide an income stream. You might not make much if you farm it yourself, but somebody will pay to rent it. Current rents near me are 225/acre on the low end up to near 300/acre. It doesn't take a ton of land to make good money. It just takes too much money to buy the land...

Yeah, land prices around here are turnin' stupid, too. Seems like everybody and their cousin buyin' land here, when the can. Honestly, land is held onto pretty tightly by the locals here. And I kinda get that. It's definitely one way to control who moves into the neighborhood. I think a lot of it around here is also "word of mouth" such that if ya know somebody and they like you, there might be somethin' for sale whereas if they don't know ya, nope, nothin' for sale. On occasion, there have been "buyouts" to get rid of a bad neighbor, rumor has it several occupants of the current land I'm on were bought out just to get 'em to go away.

"Good" farmland around here is kinda premium anyway as much of the soil around here is very shallow, poor, and rocky. It's not called "Ol' Rocky Top" for no reason. I still kick myself now because I didn't buy a place a few miles from here that had a dumpy old trailer on it but was about 5 acres of some really good dirt. It's since been bought, trailer hauled off, a monstrosity of a house built, and them tryin' to resell it at a stupid price. They never did sell it. But now that the house is on it, not something I'll be lookin' at.

Dunno. Maybe leasing some land may not be such a bad thing. Gotta look into how one can do that and try to maintain at least some degree of protection. Soil improvements ain't somethin' a person can undo or take with 'em if the owner wants their land back.
 
We have someone farm 15 good acres. Because we are not using it. We get lots of maintenance jobs in return. Because we're old. And they are family. And if they decide not to do it anymore, our young neighbor married guy would be chomping at the bit to take it over. Around here, people do that for money, other maintenance, or a percentage of the harvest.
 
What to convert cash to if anticipating hyperinflation?
Hyperinflation kind of goes hand-in-hand with socialism. So if you have farm land as an investment, what is to keep the gov from assuming control over your farmland? Many examples of this in history.
Same goes for any income producing real estate.
 
What to convert cash to if anticipating hyperinflation?
Hyperinflation kind of goes hand-in-hand with socialism. So if you have farm land as an investment, what is to keep the gov from assuming control over your farmland? Many examples of this in history.
Same goes for any income producing real estate.

And in that light, you suggest... ?????? Would love to know!
 
What to convert cash to if anticipating hyperinflation?
Hyperinflation kind of goes hand-in-hand with socialism. So if you have farm land as an investment, what is to keep the gov from assuming control over your farmland? Many examples of this in history.
Same goes for any income producing real estate.
In true socialism this is quite true. It happened in east Europe for sure. In west European style socialism, or social welfare capitalism, it much less common. But it's not necessarily a big step from one to the other...

In reality, what's to stop a government from appropriating any asset a citizen has? I think most people here know the answer...
 
And in that light, you suggest... ?????? Would love to know!

I am not Hiwall, but if your fear is a Venezuela style socialist utopia, their will be limited opportunity for us common folks to win financially. But we can look at the plight of the common man living under such conditions. Money is hard to come by, very little is on the shelf, and if it’s available, you don’t have enough money for it anyway. To guard against this, you certainly don’t want to stand out, but some simple investments in some sustainable infrastructure could pay off. Making sure you have a good woodstove, garden beds for your use, a way to get water, and such will go a long way. Also, making sure you have no debt. I do think asset forfeiture is a risk. They will certainly go after the bigger land owners and large operations with fancy infrastructure before they come after some old guy with a small garden in the back yard. I know when the big farms collapse and everyone is hungry, all bets are off.
 
I am not Hiwall, but if your fear is a Venezuela style socialist utopia, their will be limited opportunity for us common folks to win financially. But we can look at the plight of the common man living under such conditions. Money is hard to come by, very little is on the shelf, and if it’s available, you don’t have enough money for it anyway. To guard against this, you certainly don’t want to stand out, but some simple investments in some sustainable infrastructure could pay off. Making sure you have a good woodstove, garden beds for your use, a way to get water, and such will go a long way. Also, making sure you have no debt. I do think asset forfeiture is a risk. They will certainly go after the bigger land owners and large operations with fancy infrastructure before they come after some old guy with a small garden in the back yard. I know when the big farms collapse and everyone is hungry, all bets are off.

Makes sense. I'll never be a "big producer" even if my biggest dreams come true.

I do wonder how much they may even want to do as far as kicking people off the land. Yes, I have gardens, hopefully some chickens and a couple of high tunnels by then. But if they came by and just kicked me off the land, the question becomes, then what? If they kick me off the land, I can't take care of the land. And those chickens won't magically collect and process their own eggs. The gardens won't magically harvest themselves, wash, and package the produce into the fancy-pants little blister packs like they find in the grocery store. I don't see a lot of "win" from their point of view. Then again, the government often does things that make no sense... :/
 
I just got back home and am browsing the new posts and saw this. Have not read every post yet but a thought came to mind after reading a few: upgrading items you have and use that might be mediocre quality. Having top quality items should last longer, perform better, and not need replacing any time soon.
 
Hey, if I knew all the answers I would already be incredibly rich and wouldn't be talking to peons:)

Glad to be thought of so highly. :)

Anyway, will just do the best I can and will try my best to have the KY handy for the government screwing that is coming. Will land where I land, even if that means living in that old crappy RV parked between the garage and the barn... again. And if they take that, too, I guess they'll find me cold and stiff somewhere a bit earlier than planned.
 
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