Friday, February 29, 2008

Investments III-Other Commodities

Stuff has become more valuable. Or the dollar has become less valuable. Or both. The stuff that makes for the best investments is stuff that the government is likely to restrict access to.

Western water is a good example of this. There is a finite amount of it and the government has its fingers in the pie. A man who bought $10,000 of western water in 2002 saw his investment grow to $200,000 in 2004.

My next pick may make me sound ‘wingnut’, which I understand means a right wing lunatic:

Ammunition is a commodity, made of metal, sold in a competitive market. Its price has doubled with the fall of the dollar. The price of a round varies, but is in the neighborhood of a quarter. The government will try to restrict access to ammunition through taxes. Maryland has proposed a $5/round tax on handgun ammunition, which would raise the retail price of 9mm ammo over 3000%.

The best investment is in a style of ammunition most likely to be restricted; namely handgun and assault rifle ammunition. A case of Russian 7.62mm currently goes for $200.

Another commodity likely to be restricted is high-capacity clips. You can buy 40-round clips for around $30 and the Taleban-special super high capacity clips for just over $100. An investment in the thing that the clips attach to goes for $350.

Note: In trying to provide you with a picture, my access to , a retailer, has been blocked:

Reason for restriction: Forbidden Category "Other"

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