Readers will recall that I recently mentioned what I’m doing to prepare for the economic hard times I (and many others) foresee in the not too distant future. One of my steps was to convert 10% of our cash assets into precious metals: one-ounce silver coins, plus a few 1/10-ounce gold coins. I’ve also spoken before of establishing a food reserve sufficient for at least 30 days.
Now comes the news that an American retailer is doing precisely the same thing – and not in a small way, either.
One week ago [Overstock.com‘s Chairman Jonathan Johnson], who is also candidate for Utah governor, spoke at the United Precious Metals Association … What did Johnson tell the UPMA? Here are some choice quotes:
We are not big fans of Wall Street and we don’t trust them. We foresaw the financial crisis, we fought against the financial crisis that happened in 2008; we don’t trust the banks still and we foresee that with QE3, and QE4 and QE N that at some point there is going to be another significant financial crisis.
So what do we do as a business so that we would be prepared when that happens? One thing that we do that is fairly unique: we have about $10 million in gold, mostly the small button-sized coins, that we keep outside of the banking system. We expect that when there is a financial crisis there will be a banking holiday. I don’t know if it will be 2 days, or 2 weeks, or 2 months. We have $10 million in gold and silver in denominations small enough that we can use for payroll. We want to be able to keep our employees paid, safe and our site up and running during a financial crisis.
We also happen to have three months of food supply for every employee that we can live on.
There’s more at the link.
Folks, that’s a heck of a corporate investment in emergency preparations! If a 1½-billion-dollar-turnover US company takes the current economic situation that seriously . . . why aren’t we???