Bullion Savings vs. Investments

Part of your bullion holdings should be considered your "core savings" which protect you for a rainy day. This portion you never sell unless it is a rainy day, you really need the money, and only after you have sold all of your "investment" holdings. The next portion is your "investment" holdings. These you buy and sell to capture profits.

Here is the danger though...

Don't sell your "investment" holdings in a hyper-inflationary environment just because it looks like a great "profit" on paper. You will be trading your "store of value" for dollars that continue to drop in value.

Instead, consider transferring your bullion holdings into other assets that are also "stores of value" and which appear to be undervalued. Don't leave the funds sitting in depreciating dollars for very long.

In my opinion, real estate will soon be an undervalued asset that makes sense as prices over-correct. In Southern California the lower-end homes now are starting to look good because you can actually generate a positive cash flow by renting them out.

If (and most likely when) we get into a hyper-inflationary environment make sure that you allow for frequent rent raises in your lease agreements. A month-to-month lease would be ideal. This is even better if you secure long-term, fixed-rate financing so you can pay back the debt with worth-less dollars.
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