Survivalists (myself included) tend to be a little bit
paranoid about national and world events that occur. We are fairly certain that something, maybe
something relatively minor, is going to start a domino of events that will lead
to a breakdown in society as we know it.
There is often a strong urge when something comes on our radar to secure
survival equipment and supplies that we have been intending to procure but that
we haven't got around to yet. This
"survivalist panic" can sometimes lead us to make bad decisions, just
like things can lead real-estate buyers and stock market investors to make bad
decisions.
I've been at this a long time and I've seen much of it
happen before. I had friends in the late
70's who read Howard Ruff's book How to
Prepare for the Coming Hard Times and jumped on the gold buying wagon. Gold was the perfect investment because it
would retain its value no matter what happened to the fiat currency that the
government was printing. Gold prices
soared. Panic buyers wanted to get in
before it was too late. Some people
scraped together ever cent that they had, including their savings and
retirement, to invest in gold at $600 per ounce US. Boom! The market collapsed. Gold went down and down until it reached a
low of about $275 in the year 2000. If they held on to their gold until 2006
they finally broke even for the first time in 26 years. If thy still held onto it until today they
have finally doubled their original investment, and it only took 33 years. Consider this, $1000 dollars invested at 4%
compound interest would more than triple in 30 years. If my financial advisor couldn't do better
than 4% he would definitely lose my business.
The second thing I want to address is the recent panic
buying of ammunition. Yes you need to
have some ammo for hunting and yes you need to have some ammo for home defense;
but hopefully you have been buying a little along the way. If you have, you probably have all you
need. If you haven't, it will be
available again and it will be reasonably priced. Panic buying, fueled by fear of government
legislation, has cleaned the shelves and skyrocketed the price of ammo. The legislation is dying, the panic buyers
have filled their basements, the supply will increase, the price will go
down. It's all just basic free market
economics. Same thing with guns. Does anyone remember the previous time that
the price of an AR-15 went over $2000, then went back down to about
$800.00? I'm not big on assault weapons
for home defense, but if you're planning on buying one, now is not the time.
Here's my advice for spending money on survival:
1. Budget an amount that you are going to spend every month.
2. Make a prioritized list of things that you need to buy
3. Buy those things every month and don't give in to panic
buying
Remember, slow and steady wins the race.