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How a poor and working class person can prepare for inflation

Recently I wrote two articles, one was about food inflation, and the other about, why Inflation is coming to America. The traditional way to prepare for, and to profit off inflation, is to buy Gold, Silver, Oil Stocks, Metal Mining stocks, and other commodity stocks. Unfortunately, for whatever reason it is, some people just can’t invest in commodity stocks, or buy a massive amount of Bullion. This may be because, commodity stocks are too expensive, as an example one can look at Barrick Gold
here, or Chevron here, or even a cheaper one’s like Silver Standard here,
or, that person has only enough money to buy one commodity stock, and can’t diversify in commodity stocks, due to the fact that investing in one stock involves a lot of risk, and that this investment could really come back to haunt you. Whatever the reason is, their unable to implement that strategy.

Does this mean that since you don’t have a sufficient amount of wealth right now, you’re doomed to suffer from painful inflation that will soon come to America. No, because I am going to outline some simple necessary steps for you to profit off inflation, as well as ease the pain for you.

As you can see from my first article about food inflation, I gave out stocks for people with a huge amount of savings, aka Agrium, Mosaic, and Potash, as well as stocks for people with little savings aka Western Potash, Allana Potash, and I think Potash One. For people with big savings, I just gave out three stocks, that I currently own, (Silver Standard, Chevron, and Barrick), which will rise in value due to inflation, as well as solid supply and demand fundamental aspects. So if you have big savings, these are three stocks, you would want to look at. Below I am going to outline some simple, cheaper strategies for one to prepare for inflation, and profit from it.

This first strategy, is for people with small amounts of savings, and want to buy a plethora of stocks that will rise in value due to inflation; but due to work, family, school, or other obligations, one just doesn’t have the time to research enough stocks to diversify. One can buy the Junior Miner ETF. If you click on the Junior Minor ETF, you will see their holdings. Buying this ETF gives you exposure to numerous junior miners, reducing the normal risk one would have in investing in a single small cap or penny stock, and will help you profit from the rising price in precious metals.

I would not buy just one penny stock or stock in general as a way to play a sector, no matter how good the company’s business model and assets are. When a company is just forming, which can be the case with penny stocks, junior minors, or sometimes small cap stocks, they can be bought out for an undervalued price, screwing over, you the share holder. Theirs also political risk, law suit risk, numerous things can happen, which are hard to predict. When playing any sector, you want to have a couple of stocks to increase your chance of profiting, and reduce the risk of owning a single share.
Peter Schiff mentioned on his show, that some of his mining stocks which he invested in went out of business, now, Peter Schiff is the cream of the crop when it comes to investing in this sector, he knows as much about this sector as anyone on this planet, and if he can be wrong about a mining stock, than so can me, you, and everyone reading this. But remember, because Peter Schiff bought numerous amounts of stocks, he has profited, and is still profiting from this secular bull market.

The second way to prepare for inflation is by buying small amounts of precious metals incrementally. Here is an unbiased Gold and Silver seller review for you, so you can decide which place to buy bullion from. I buy mine from Gainesville coins; I would say the best prices are from Bullion Direct and Gainesville coins. Europac Metals is also a place you might want to buy your bullion. Peter is a reputable and honest man. Don’t buy Nusmatics, Certified Gold or Silver, or any funny stuff. You want Bullion and that’s it. When it comes to Silver, the coins you want are Maple Leafs, or Eagles, those are bullion coins. If you have a sufficient amount of savings and want Gold, you want Eagles, Krugerrands, Maple Leafs, and bars that’s it. If a broker tries to sell you certified, Nusmatic, rare coins, or any other funny stuff, hang up, because you are dealing with an unethical broker that wants to sell you something with a massive mark up. If you have very little money saved to buy Bullion, I would use this strategy as a way of buying bullion. I would first start saving up 30 dollars a paycheck each week (more if you can), and buy 1 oz Silver bars, for every two paychecks you receive, if you want to go the bullion route. A one ounce Silver bar is currently only around 30 dollars each, so if you take thirty dollars out of each pay check, every two paychecks will allow you to buy a one once Silver bar, which will include around a 3-4% markup, sales tax, and shipping and handling costs.

The next way to prepare for inflation won’t cost you anything. This is way is done by collection. This way is implemented by collecting Kennedy half dollars, or dimes that were made pre-1965 when US coins were minted in Silver. This is also known as Junk Silver. But the problem with this strategy is that, these coins were made of Silver, so as a result people have generally kept them, and there’s very little of these coins in circulation. However, if you can find these coins, keep them.

But, another way to prepare for inflation is by collecting pennies that were minted in 1982 or before, because these pennies are made of copper, and the melting these pennies into copper will make you richer. During inflation copper will go up in value.

The next way to prepare for inflation doesn’t involve stocks, coins, or bullion, and is very well strategized. If one looked at my first article on food inflation, they would see that higher costs of food, is going to be in the future. One way to counter that is by value shopping. What I mean is, one can buy things in bulk, and store them to be eaten at a later date. Think of it this way, the rice you purchase, will possibly go up 10%-20% in 6 months to a year from now, and when you open the bag to eat the rice, you won’t have to pay a capital gains tax on the increase in food price.

You don’t have to do this with just food, you can do it with toiletries, clothes, if you need gas for your lawn mower this summer, buy the fuel now, and when you fill up the gas tank this summer and mow the lawn, you won’t have to pay a capital gains tax on the increased gas price you would have payed, had you bought the fuel in May. You can do the same for your gas grill fill up the propane tank now, because it would be cheaper to do it now, than it would in May or June, when BBQ season hits.

Also if you have young kids, and you know they’re going to grow out of their clothes, and into new ones, buy some clothes that are a bigger size, and they will grow into those clothes. This act would have saved you an enormous amount of money, due to the fact that, the price of cotton, and other materials, will be a lot higher in future. You can even buy them shoes that are a little bit bigger, because they will grow into them, and what you would save will be astronomical.

These are some simple steps to help a family save money, and prepare for inflation if they don’t have very much money right now, or for whatever reason, have little savings, or can only save money incrementally, but are worried that inflation will wipe their small savings away.

One last thing, if you like Beer, Wine, or Liquor, and enjoy a drink every now and again, stock up on those, and put them away till next year, or for a later date, because the price of all alcoholic beverages will rise with the price of grain, wheat, etc.

I would always encourage people to live below their means and to save their money, but unfortunately, due to Obamanomics, and Bernanke’s Quantitative easing, there not allowing you to save your money in dollars, and maintain your purchasing power, so as a result, we have to get our savings out of dollars, and into hard assets, commodity stocks, or foreign stocks, in order to maintain your purchasing power.

What I mentioned above are some small steps, someone with a medium or small income can take to help prepare them for inflation.


Comments ( 15 )

  1. Replyfreedol

    My friend Jason just alerted me this. GDXJ, GDX and SIL (Silver Miners ETF) are also very good gold and silver mining ETFs people can get instant diversification in.

  2. Replydpish

    Very good points, I like the ideas on gas and propane. Sounds like I am going to need to spend a little money now, to save alot more later.

    • Replyadmin

      thanks, I thought this could be a creative way

  3. ReplyHallie Mangum

    This is a different sort of opinion that many people don’t usually talk about. Sometimes I fav stuff like this on Redit. Although this time I’m not sure if this would be best for the users. I’ll look around and find another article that may work.

  4. ReplyTonette Carskadon

    Hello, I accidentaly found your blog!I am trying to get ideas for proper writting style for my own website and what you write definitely gave me some ideas. You have a cool website so keep up the good work!

  5. ReplyLahoma Holtberg

    When I originally left a comment I clicked the -Notify me when new comments are added- checkbox on some blog post of yours and from then on each time a comment is published I get four mails with the exact same comment. Is there any way you can actually remove me from that service? Many thanks!

    • Replyadmin

      not sure what to tell you

  6. ReplyMaribeth Bremme

    Maybe you've ever wondered as to who publishes a lot of these things that you and me come across? The online market place never was formerly like that, a short time ago though it has turned around. What do you think?

  7. ReplyTomasa Schreifels

    i have been reading your blog from sometime and i must say you always maintain good consistency,hence i always enjoy reading your blog.

  8. ReplyVi Stumm

    Actually after reading this article, i am against you on this. I do not blame you,and am actually thankful for bringing this up on your blog. I am just conjuring up a dialogue here,no hard feelings.

    • Replyadmin

      your against making money

  9. ReplyMarg Friesen

    you know actually i got on this blog by an accident,didnt mean to search this.but still this post was a good read but surely agruable one.

  10. ReplyJanuary Frabott

    Hello, I accidentaly found your blog!I am trying to get ideas for proper writting style for my own website and what you write definitely gave me some ideas. You have a cool website so keep up the good work!

  11. ReplyFlorine Wloch

    my views on this topic differ from you.its good that you brought this up on your blog,it was a nice controversial read.

  12. ReplyMackenzie Polston

    Your article seems interesting, i have noted it my digg and stumble account.The point you are making is easy to understand and effective.

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