The Time Traveler’s Financial Survival Kit

Yesterday, we were discussing the Carrington Event — a catastrophic solar megastorm that could fry the national electric grid… and plunge America into permanent darkness.

During the last Carrington Event in 1859, the effects were hardly felt by the pre-electric society of the time.

But if the same solar storm were to occur today — and short out every piece of electronic equipment in the country — we’d be looking at an economic crisis unlike any we’ve ever seen before.

Every dime and dollar stored digitally would disappear in an instant. And I’m not just talking about bitcoin or cryptocurrencies here.

Any money you’ve invested in the stock market… your 401(k)… even your monthly paycheck sitting in the bank… all gone.

Sure, there’ll still be piles of money sitting in your bank’s vault. But no one’s going to give you a dime without a computer giving them the OK.

Your “wealth” would be reduced to the cash in your pocket, the clothes on your back, and your home… if you can protect it.

Our government is well aware of the threat of a Carrington-type event. In 2006, they established a commission to study the effects of such an event and make recommendations to protect the U.S.

Despite this (and the fact that the commission made several recommendations to protect the U.S. grid) no action has been taken by the government… and we’re running out of time.

As I mentioned yesterday, according to a leading expert on predictive science, there’s a one in eight chance there’ll be a catastrophic solar megastorm before 2020.

That’s not a lot of time to prepare for what will potentially be the biggest catastrophe in U.S. history.

We’ll discuss more traditional survival supplies (and their value) later in the week.

When discussing an economic catastrophe of this scale, the lines can blur between financial and survival prep. But today, I’m going to stick to financial prep in a more traditional sense.

Financial Survival: Short-Term Solution

A disaster of this magnitude presents a unique problem for a financial prepper.

This isn’t a flood or an extreme weather event that you can just wait out.

This is a prolonged, society-changing disaster that will break the back of our economy… and I don’t see the dollar making it out alive.

Once the banks are gone and the stock market is wiped, it won’t be long before the dollar is devalued along with all other fiat currencies.

You could stack a million dollars in your basement and a year after a Carrington Event, it won’t be worth the cotton it’s printed on.

That said, currencies don’t devalue overnight. Especially in a world with no internet or phones.

With the lines of communication broken, information is going to travel at a snail’s pace.

For a few weeks or even months after a solar event, most folks are still going to trade with cash — partially out of habit and partially because they have no idea what’s going on.

You can take advantage of this by storing a small amount of cash with the rest of your survival supplies. Stash $1,500–2,000 in a secure place in your home… and don’t be shy about spending it.

Use this money to nab valuable supplies before folks stop using cash altogether. Later, you can keep these supplies for yourself or trade them for something you need more.

Financial Survival: Long-Term Solution

Dollars and euros and yen are easily devalued because they are fiat currencies.

A fiat currency is a representation of wealth, backed by a government, but holds no real intrinsic value.

In a post-collapse society without a government to enforce that value, these fiat currencies would become worthless. The same cannot be said for precious metals such as silver and gold.

Now, critics will tell you that gold and silver have no intrinsic value either. And sure, if you’re being painfully literal, you can’t eat gold or build shelter out of silver.

But their value is rooted in their universal acceptance as a perfect means of exchange. They do not rot or corrode. And they are rare, which means folks can’t flood the market by making more and devaluing them.

Still not convinced?

Let’s hop in a time machine with a sack full of gold and silver, and travel to any great civilization at any time.

Take your pick… ancient Rome… China… Egypt… They’ll all happily accept your gold and silver down at the local market.

It doesn’t matter whose face is printed on the coin. They’ll simply test that it’s real — with techniques that we still use to this day — and fork over the goods.

That hasn’t changed today. And I don’t see it happening any time in the future. Not even after a total economic collapse.

There will probably be a period of time after the collapse when people will trade strictly in supplies and tools for their survival.

But I have no doubt that folks will be back to trading silver and gold before long.

Personally, I like silver for its versatility. Sometimes gold is just too valuable, making it hard to trade for small items.

It’s a good idea to keep 20–50 ounces of pure silver on hand in the form of American Silver Eagles from the U.S. Mint.

You won’t regret it in the long run. Heck, even if the there’s never a solar event in our lifetime, it’s always good to a have a physical store of silver and gold.

Twenty ounces from a reputable dealer will cost about $360 at today’s prices (including commission) while a one-ounce gold coin will cost around $1,360 at today’s prices.

As always, we welcome feedback from our readers. If you agree, disagree or have any topics you’d like us to investigate, you can email me right here.

All the best,

Owen Sullivan
Editor, Money & Crisis

Editor’s note: The strategies you read about in Money & Crisis were developed with the help of Jim Rickards, one of the world’s leading experts in investing in gold.

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