http://www.survivalblog.com/2007/06/letter_re_request_for_investin.html
Letter Re: Request for Investing Advice from a U.S. Reader
What is your guidance on a safe (conservative) way to invest? What percentage in precious metals? Thanks, – TZK in Central Kentucky
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JWR Replies: I recommend that SurvivalBlog readers should put at least 25% of their portfolios into gold, silver, and barter goods, and roughly 50% into productive farm ground–a retreat to occupy year-round–in a lightly populated region that is well-removed major metropolitan areas.
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I consider any investment denominated in un-backed paper dollars risky, at least in the long term, since the US dollar, as a currency unit is doomed. It faces the same fate as all other un-backed currencies throughout history. In the long run, they will all inevitably revert to their actual value, which if measured either by weight or per square inch is comparable to toilet paper.
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Well, in the long run, we all die too.
One can quibble about the advice. I’m not sure there will be any place to hide in TEOTWAWKI (The End Of The World As We Know It) scenario. But, having said that, one wonders how long the mass global illusion with the Federal Reserve Note aka mislabled the dollar can continue?
Abroad, the Chinese and the OPEC are amassing huge collections of these funny green pieces of paper. Abrogation by the USA gooferment is not unheard of. Think of the French having the gold window closed in their face. At home, look at the mountains of unfunded liabilities the various levels of gooferment have rung up. So gold does appear to be a store of value.
I would respectfully disagree with JWR the greenback isn’t comparable to toilet paper. Toilet papers is useful; greenbacks are a poor substitute.
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Reinke Faces Life 