Don’t wait another minute to protect your savings with gold
by Sam Rolley
For years, Personal Liberty® and Bob Livingston Letter™ readers have understood the importance of holding physical precious metals and food stores as a hedge against unexpected economic disaster. A major online retailer has also taken note, incorporating that prepper advice into its business strategy.
According to a recent report in Financial Times, the online retailer Overstock.com has amassed $10 million worth of gold and silver coins to protect the company and its employees in the event of a financial disaster. And it’s a good plan, because there are several indicators that government-initiated financial turmoil could fall on U.S. businesses and individuals before the year ends.
“We thought there’s a decent chance that there could be a banking holiday at some point caused by a crisis and it could last for two days or two weeks or who knows how long, and we wanted to be in a position where we could continue to operate during any such crisis,” Overstock chairman Jonathon Johnson told FT.
The company’s latest financials filed with the Securities and Exchange Commission detail the holdings:
Our precious metals consisted of $6.3 million in gold and $4.6 million in silver at June 30, 2015 and December 31, 2014. We store our precious metals at an off-site secure facility. Because these assets consist of actual precious metals, rather than financial instruments, we account for them as a cost method investment initially recorded at cost (including transaction fees) and then adjusted to the lower of cost or market based on an average unit cost. On an interim basis, we recognize decreases in the value of these assets caused by market declines … We recorded a $52,000 loss on investments in precious metals for the three and six months ended June 30, 2015. There were no recorded gains or losses during the three and six months ended June 30, 2014.
Johnson, who is currently running for governor of Utah, said Overstock doesn’t stop at precious metals in its business prepping. The company also keeps a three-month supply of freeze-dried food on hand, enough to feed each of its employees plus one family member.
According to Johnson, he was able to convince the company’s board to devote about 10 percent of its liquid assets to disaster preparedness following the great recession and subsequent years of Federal Reserve quantitative easing.
Johnson told FT that Overstock’s preparedness policies have little to do with it having a prepper mentality. Instead, he argues, it’s just responsible business.
“Gold is just one of the financial contingency plans that Overstock puts in place,” he said. “We also have contingencies if sales don’t come in as expected.”
You can learn more about why precious metals continue to serve as the best safeguards for your financial future and how to trade your fiat cash savings for indestructible gold and silver with a subscription to the Bob Livingston Letter™ and a free gift of the Merrill Jenkins Financial Survival Package.