[Peak_Yeast]

I was wondering if the locals here could help me out a bit.

Consider you were in the following position:
1. You have no debt and a fine house with solarpanels
2. You have 150.000$ in physical gold, silver and precious stones
3. You have the tools and the cars you need
4. You have 1000 liters of diesel for your cars
5. You have 150.000$ in cash.

In what and how much would you invest of the cash?

I do have some ideas, but i would like to get unbiased input - and as much of that as possible.

[Tikib]

Given the way peak oil is going, cans of food.

And given the way global warming is going tanks of oxygen.

[Loki]

Um, you have $150k in cash? What, in your mattress? Or checking account? LOL

If so, I'd use some of that cash to hire a financial advisor. Or a really good mattress salesman.

If I had that kinda cash/gold, I'd buy a homestead and figure out how to get a modest income stream to keep the homestead going. But I'd also not ask me for financial advice Best way to burn through cash is to set up a farm.

Pstarr, sounds like real estate is grossly overpriced in your area. Should sort itself out once weed is legalized. Humboldt County can then return to poverty. But hey, you'll still have your clearcuts. Should grow back in 40 to 50 years.

[vtsnowedin]

You have way too much of your assets in gold. Buy enough land for a good doomstead. Working agricultural land with woodlot adjacent. Buy a good safe. Put some of your cash in it along with some guns. Store a good amount of ammo in a locker some place other then in the safe. Increase your diesel storage to 5000 liters. Get that done then get back to me.

[Newfie]

A lot depends upon who you are, what your interest are, your age, country, etc. I would also encourage you to think of ways your money can bring you joy. I get no thrill out of money in some account.

Today may not be a good time to buy real estate, even though I find it generally a good investment. 20ish years ago we bought a 4 unit town house, a bit run down, in a great neighborhood. That has been a wonderful investment for us. 12 years ago I loooked to duplicate that investment and could not. House prices had risen substantially faster than rents. So for us that was the balance, evaluating the rental stream against cost. I do believe that rentals, especially in attractive downtowns, are a great investment, if they are balanced correctly against purchase cost. Home ownership rates are decreasing, folks are concentrating to the city centers. There may be a day when civil unrest makes it a bad deal, you need to sell out before then.

So instead I bought myself a piece of land, and a boat. I didn't buy the land as investment, but as a tangible asset that was durable. It could also be a place for a doomstead. It appears that it has appreciated nicely, but not dramatically. And it makes me feel good. $58,000 bought me 168 acres of woods in Cape Breton. My best guess is it is now worth about $100,000.

I also bought a boat, a sailboat. That was an investment in my soul, and it is a way to get to my remote property. I've lost less money on the boat than I have in some stocks, and gotten a lot more enjoyment. In fact we have bought a second boat, as a retirement home. Which our apt building will fund.

I have more guns than I will ever need, hunting guns. Guns can be a good investment, but I'm NOT into the self defense, shoot the zombies, survival. If you feel you need a gun for self defense, move. Find some place safe. But as a pure investment they may be pretty good. They are likely to be restricted in the futre, so that may work for or against you.

We do have a financial advisor for our savings and retirements. I would recommend that also. But in parallel, and as a check, I would make myself familiar with this site... FIRECALC ....it is a financial planning tool. The first page looks quite idiotic and simple, but as you drill through the tabs on the top, and learn how to use the tool, it becomes quite good. Lots of good recommendations for it from online financial advisors.

http://www.firecalc.com

Good luck.

[Pops]

Dang it, lost my post

Long story short, the big talk nowadays is deflation. In deflation cash becomes more valuable because instead of getting more expensive, thing get cheaper tomorrow. Also in deflation, inflation can't rob you of value so earning interest is not as important.

So what you do with it is not as important as merely keeping it safe.

I think gold is a speculative investment just like all the other markets, unless you are a professional gambler sell it. At best it is an inflation hedge, which is why it has fallen with inflation the last couple of years, It has already fallen what 25% in the las years? Sell it and buy land, hopefully land that grows grass and has few local institutions controlling what you can do on it.

In deflation the economy slows and cash becomes scarce and increases in value. The reason it scares bankers is interest becomes essentially negative and people DO pull cash out of the bank and stick it in the mattress, causing the banks to fail.

So keep your cash in cash. Doesn't have to be under the mattress just in a big bank (or 3 or 4) in fully insured accounts. If you see inflation then things change.

[Newfie]

Good point Pops.

It's just hard for me to see a deflationary spiral. Maybe, don't know.

Surely cash is flexible, which is in itself good. Real estate and other large holdings, not so.

I spent a lot of time trying think of cash alternatives, I don't really have any.

[dinopello]

So already the comments point out two important points

Uncertainty - Deflation, Inflation ? - the reponse should be to diversify. Keep a third in cash.

Land/Real Estate - possibly a good investment but you should know the area really well as it is all about location.

Other - All sorts of stocks out there but all are risky depending on what happens in the economy (long term) or perception (short term). There is also the risk of losing out on a big upswing too though. The best thing right now in my estimation are some of the beat down oil sector stocks - ESV, SLB, CVX, etc. They all pay dividends and have a history of keeping them even when the price of oil has been pushed down. I would put about a third in stocks.

[Peak_Yeast]

Thanks for all the answers. It is greatly appreciated.

Some clarifications:
No - I am not from the USA - I am from Denmark - a small pile of washed out dinosaur sh!t in Scandinavia...
Age 42
Weapons are really difficult to get hold of here in Denmark. Takes years to get permission.
My interests: Home farming, renewable energy, inventing "stuff", nature - and, of course, our common future.
My absolutely not interests: Travelling, fun fairs, partying, discos.
The money is in my bank account, but I do not like having them there.
The 150.000$ is not only in gold - but gold, silver and precious stones. About 1/3 each.
The reason why I ask here is because i do not trust the professionals - they are too conventional and costly. Besides 150.000$ is not really a lot.

A problem with real-estate - at least here in Denmark - is that it is only the capital that has rising value - and they are already valued extremely high. - And the Danish laws prevent owners from renting out at any profit above a few %. I think the limit is 3%. Also there are many laws to protect people who rent, but none that protect the owners. Its a real strange market. So if its real-estate to rent out - it must be in another country.

I am actually considering relocating to another country - in order to get a decent sized farm and to find a place without too many laws on what i can do on my property. Denmark is a hell-hole when it comes to ownership of real-estate. For example - i cant put up a windmill - because of the rules. Just making the reports for the county concerning the noise from the windmill cost approx. 8000$. And you have to make it - even if no one is living within several kilometers.

I will read all the answers through, think about them and post something tomorrow. I am too busy today to use a lot of time.

[vtsnowedin]

Thanks for all the answers. It is greatly appreciated.

Some clarifications:
....
....
The 150.000$ is not only in gold - but gold, silver and precious stones. About 1/3 each.
The reason why I ask here is because i do not trust the professionals - they are too conventional and costly. Besides 150.000$ is not really a lot.

Our amateur advise is free and worth every penny.
Gold silver and precious stones are all in the same class and the usual recommendation is to limit them to about ten percent of your investments. At any rate you are way ahead of me and at a much younger age so unless you just inherited it all with no effort on your part I should be asking you for advise not the other way around.
There must be some farm land in Denmark where all the Danish ham comes from and that is the real estate I'd be looking at if trapped in Europe. Not for rental income or a quick return on investment but as a place you own free and clear that can be self sustaining after an economic collapse.

[Newfie]

For a while cape breton, Nova Scotia, Canada had a lot of Germans buying land. We bought our parcel from a German couple. Some areas of Nova Scotia and New Brunswick have very nice dairy farms.

Just a thought if you are considering emigrating.

[Shaved Monkey]

You don't need a farm,Invest in a greenhouse a rocket stove and some permaculture education and get involved with community.
Denmark has a highly educated, civilised,predominantly non violent un armed population with good infrastructure.
The down side is weather,the greenhouse and the rocket stove can sort that out.

[Peak_Yeast]

Thanks for all the advice.

It looks like it drags in different directions, however.
1. Spend the money on diesel, housing
2. Keep the money (safe)

I have been looking at Canada - my problem with Canada is the requirements to emigrate there. - I tried to calculate my points and it looks like I will have to learn French at least. An engineering degree, being well off and so forth is not enough for them. I also need to have a job waiting for me. But then its 5 years ago i looked at Canada perhaps things have changed.

I would like to buy farmland here in Denmark - but all land is owned - and peasants do NOT want to sell. I even offered three time the value of land, but my neighbourgh farmer laughed at me and refused even to discuss it.

Now that I have your advice I will tell you what i had been thinking.

1. Make a zero energy house (house produces as much energy as it needs).
2. Relocate to a poor country and purchase farmland there in a VERY rural area. Preferably in a semi-desert area - a place where you have to be an idiot to go there
3. Stock up on food and diesel
4. Rent out the house in Denmark.
5. Develop my own aeroponics system with computer control and
6. I have told my wife to look for a biotec engieering job in the states - this way we might relocate temporarily to the USA to look at the opportunities.

[Peak_Yeast]

vtsnowedin:
My advice is not really usable to normal/most people

I never had any traditional vacations - when I went on vacation i took my canoo and sailed the rivers and lakes in Sweden. - Saved me a 100.000$ and it got me in shape.
I never loaned ANY money. I saved up - then bought.
I lived in a small appartment for many many years - while my friends loaned millions to buy their housing. - Many of them are now in endless debt - and insolvent.
I was lucky to get some good contracts with Siemens for developing their new line of Digital MASS flowmeters as a consultant.

[Newfie]

Yeast,

If you are serious about Canada then I would look again. This is not something I follow, but what I have picked up is that the Eastern provinces have different emigration standards due to falling population.

You mention learning French. You must have looked to Quebeck. I have met a French physician having difficulty emigrating there.

With an engineering background I would look to Halifax as a larger city, but also to St. John's, Newfoundland, where they have the oil industry boom.

[vtsnowedin]

vtsnowedin:
My advice is not really usable to normal/most people

I never had any traditional vacations - when I went on vacation I took my canoe and sailed the rivers and lakes in Sweden. - Saved me a 100.000$ and it got me in shape.
I never loaned (borrowed)ANY money. I saved up - then bought.
I lived in a small apartment for many many years - while my friends loaned borrowed millions to buy their housing. - Many of them are now in endless debt - and insolvent.
I was lucky to get some good contracts with Siemens for developing their new line of Digital MASS flowmeters as a consultant.

I cleaned up you translation a bit for you. Not that I'm a grammar freak or spelling expert but thought you would find it useful.
If you are debt free you are well ahead of the vast majority and as secure as you can be in any given country. That the farmers won't sell tells you the real value of farm land. Are there son's waiting to inherit or do farms come up for sale when the farmer passes away?
Moving to another country is a big gamble and is probably harder to do the more attractive that country is. Anybody can move into a hell hole but the garden of Eden is booked solid. The farmland in Ukraine is great I hear but I would not want to be there today. Be an interesting search to compare the entrance requirements and processes of all the countries you might consider.
If both you and your wife work in the tech. field I would think you could move to the USA without too much trouble but the rules here are changing do to the influx from Central America. Even Canadians coming down to work while their spouses complete grad or medical school have to wade through piles of paperwork to get a green card and work permit.
Also some countries will let foreigners buy and invest in land while others will not. You could own ,it rent it out, and visit it when on vacation and just forget to go home when or if things go to hell back home.

[Peak_Yeast]

hehe.. Thanks vtsnowedin. .. The loaned / borrowed thing is because to borrow is to "låne" --> "loaned" in Danish. I make that mistake when I am thinking about other things than grammar. I wonder where i got the idea the apartment has two ps - but you know - sometimes when I read typos I also learn the typos ... Dont worry about offending me - as someone said - whom i agree with: "How am I to learn, if you do not correct me?". I am not the proud type and appreciate it when people correct me.

Yes we are in "tech": I am an electrical engineer and my wife is a biotec engineer.

Concerning the farmer: Yes, I believe he has a son waiting to take over.

Also thanks to newfie for his contribution. I am also considering purchasing a boat - my wife would like to take a year off and sail around the earth.

Concerning islands: Unfortunately the islands I have seen for sale lately are either impossible to live on permanently or impossibly expensive. The only places that are possible are either Northern Canada - or places in the "cocain" belt of South America.

[vtsnowedin]

hehe.. Thanks vtsnowedin. .. I am not the proud type and appreciate it when people correct me.

.

I am not a teacher or an expert so I do not presume to have the authority to correct anyone. At least not in English grammar and writing. Take what points I could see and make use of them as you see fit.
Now if you want to discuss how to efficiently build a roadway using currently available technology that will last for decades then I will have very strong opinions based on years of experience and experimentation.