You've no doubt seen those interminable TV commercials extolling the virtues of buying gold, silver and other precious metals. They tell you that gold will protect you from inflation and the falling value of our once-vaunted currency. And, so long as Mr. Bernanke, Fed Chairman, continues to print money at the rate of more than $85 BILLION DOLLARS a month, month after month, there's no question that it's just a matter of time before inflation (too many dollars chasing too few goods and services) grinds our dollar into pennies.
They also tell you that gold and silver have appreciated much more than the stock market over the past decade or so. That's true; while gold has increased about 400% since 2003, the stock market is up only about 175%. So yes, my friends, buying gold might be a really good idea. But I think I have a better one: Ammunition.
About ten years ago George W. Bush was president and a box of 50 .22 long rifle caliber rimfire cartridges cost about $2.50. Or, roughly a nickel apiece. They remained at about that price until something earth-shattering happened on November 6, 2008: Barack Hussein Obama was elected president.
Beginning the next morning there was a run on guns and ammunition that has scarcely abated since. Why? Because those in the know, know that Obama and his Chicago cronies hate guns and hate the fact that you and I can buy and keep and use them. He/they want to disarm you, and everything he's done since being reelected has proves it. Now that he no longer needs to be reelected he can begin to focus on his primary goals; pass carbon taxes, eliminate conservatism, end drilling, make citizens dependent upon the Government, end freedom and - wait for it - disarm us. His actions after the Sandy Hook massacre is proof positive that I know what I'm talking about.
So, I and millions of others like me have been buying guns and ammo at a record clip. In fact, Obama was named "Gun Salesman Of All Time" by the National Rifle Association. Gun company stocks have increased since his election by a factor of ten. Gun prices during that period have increased by at least 100%. And ammo is now almost beyond the budget of the average American. Proof?
A "brick" of .22 ammo, or 500 rounds, will set you back $100, maybe even $150, or about four or five times what it cost ten years ago!
Other calibers have increased more or less proportionately. Some of this is simple economics of the supply - demand variety. Lots of people want it and the manufacturers can't make it fast enough. And I'm of the opinion it won't calm down until we elect a president who decides to honor his oath to protect and defend the Bill of Rights...including that pesky 2nd Amendment.
Until then, you decide: buy gold and hope to get a modest rate of return, or buy ammo and be almost guaranteed to see your investment double, triple or even quadruple in value. As for me, I'm buying all the ammo I can find...