754-How to Invest in Commodities in a Radical Way (Metals, Tools, Food, Alcohol, etc.) | Interview with Steven Harris
Oct 19, 2020
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Steven Harris, an expert in commodities and preparedness, offers innovative strategies for investing beyond just gold and silver. He discusses the benefits of food and practical tools as key investment commodities. Harris explores risks associated with stockpiling, emphasizing personal decision-making in financial strategies. He shares insights on effective food storage and the long-term value of essentials like sugar and honey. The conversation also highlights the importance of preparedness in crisis situations, underscoring self-sufficiency and tangible asset investment.
Investing in commodities during financial hardships serves as a protective strategy against inflation beyond just gold and silver.
The 'alpha strategy' involves stockpiling essential items to ensure future needs are met, protecting against economic uncertainties.
Strategic planning in stockpiling is crucial to mitigate risks of theft, damage, and obsolescence of stored goods over time.
Food storage is framed as 'food insurance', providing sustenance and financial buffer against price fluctuations and shortages.
Exploring diverse commodities like metals and tools can offer lucrative investment opportunities beyond traditional financial assets.
Deep dives
Importance of Commodities in Tough Times
Investing in commodities, particularly during financial hardships, is emphasized as a protective strategy against inflation. Traditional thinking often links the term 'commodities' to precious metals like gold and silver; however, a broader perspective suggests including items people regularly use. An introduction to the concept of the 'alpha strategy' serves as a foundational idea, wherein one ensures their future needs by purchasing and stockpiling essential items now. This approach promotes the notion that tangible goods, such as toilet paper or canned food, hold predictable value over time, counteracting the unpredictability of financial portfolios.
Risks in Stockpiling Commodities
When stockpiling commodities, individuals must consider inherent risks that could lead to monetary loss. Two primary concerns are theft and damage, particularly in situations like a house fire, where unprotected stockpiles could be catastrophic without proper insurance. Additionally, there is a risk of obsolescence, where stored items may lose value, either through decay or being rendered outdated by superior alternatives. Therefore, strategic planning is necessary to ensure that stockpiled items retain their functionality and worth over time.
Practical Examples of Long-Term Items
Several examples of items with extended shelf lives are discussed, emphasizing the necessity of knowing the durability of what one chooses to stockpile. Items like canned food, shoes, and tires all possess varying durations of usability, necessitating careful consideration before purchase. The 'alpha strategy' points to buying items in bulk for anticipated future use to shield oneself from inflation impacts. This involves understanding which goods can be stored effectively and their relevance in times of need, such as food supply or essential repairs.
The Value of Experience vs. Opinion
The discussion makes a clear distinction between valid expertise and mere opinion, particularly in preparedness and financial advice. Individual experiences, particularly those derived from practical testing and real-life applications, are positioned as valuable rather than subjective opinions. The idea is that expertise should guide decision-making, distinguishing it from arbitrary thoughts devoid of substantive validation. This insistence on experience ensures that listeners understand the credibility of the advice being given and fosters trust in practical recommendations.
Financial Opportunities with Food Storage
Storing food can serve as both a preparedness strategy and a financial opportunity, with the primary benefit being that the stored items will eventually be consumed. Buying food in bulk can shield individuals from future price fluctuations, effectively using the commodity as a hedge against inflation. Personal anecdotes illustrate situations where food storage, particularly staples like flour and canned goods, provided essential nourishment during economic hardships. Therefore, this practice not only ensures sustenance but also acts as a financial buffer during tough economic times.
The Concept of Food Insurance
Describing food storage as 'food insurance' highlights the protective role it plays against rising costs and potential shortages. This analogy underscores the importance of having essential food supplies readily available to mitigate financial risks associated with unpredictable events. Practical examples illustrate the reliance on stored goods during periods of financial strain, showcasing how food can be a lifesaver. The discussion extends to quantify the practical aspect of purchasing and utilizing stored foods effectively, ensuring a sound strategy for long-term financial planning.
Diverse Commodities Beyond Precious Metals
The podcast broadens the focus from traditional commodities, such as gold and silver, to explore diverse commodities that can provide significant value. For instance, items like lead, copper, and certain steel grades are highlighted as potentially lucrative investments for those with the means to stockpile. Engaging in markets for these metals offers opportunities for financial security, especially as their values appreciate over time. This perspective encourages listeners to think creatively about investment strategies that transcend conventional assets by recognizing commodities with intrinsic value.
Utility of Practical Knowledge in Changing Circumstances
Being adaptable and using practical knowledge effectively is emphasized throughout the discussion, showcasing how individuals can navigate financial uncertainties with solid skill sets. The importance of having the ability to assess local markets and purchase goods, especially during emergency situations, is highlighted as a critical life skill. Stories of individuals who have capitalized on market opportunities offer tangible examples of how such knowledge leads to financial gain. This utility illustrates how personal empowerment through education and skill acquisition can lead to greater resilience in the face of challenges.
Understanding the Dynamics of Value in Commodities
The dynamics of value associated with various commodities are framed as essential for understanding investment potential. While precious metals may seem like the go-to options, practical goods like food storage, tools, or even historical currencies offer unique investment opportunities. A discussion on the face value versus the melt value of money further explores how commodities are perceived in the marketplace and their potential profitability. By demonstrating the non-linear nature of commodity investing, the podcast encourages listeners to view investment opportunities through a wider lens beyond traditional assets.
In today's show I'm welcoming Steven Harris back to the show to discuss investing in commodities. When most people think of investing in commodities, they immediately think of gold and silver. Gold and silver have a place and can be useful, but they are not the only pathway to investing in commodities. In today's show Steven and I discuss how you can invest in commodities like food, metal, tools, etc.
Enjoy!
Joshua
Go to www.RPF1234.com to buy Steven's preparedness education courses. They're awesome! (I own—and paid for—all of them myself.)
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