Investing in farmland Vs. Gold

[jth_ttu]

I was just curious to see what peoples opinions were on investing in Farmland Vs. investing in Gold. Which would you prefer?

 

[LittleLightShining]

I think farmland is more useful, but it's not portable. Not only that but since you have to pay taxes on it you never really "own" it.

 

[Dr.3D]

I think farmland is more useful, but it's not portable. Not only that but since you have to pay taxes on it you never really "own" it.

And it is much to easy for the government to take away from you. Precious metals are a lot easier to hide.

 

[TonySutton]

Investing in farmland solely as an investment may not be a good deal but buying it to become more independent is good. I would suggest finding a freedom loving state to settle in.

 

[tmosley]

Farmland as in a place to live where you raise crops and cattle? That is certainly a good investment, but it requires a lot of maintenance. You can't really do much else, and you'll need to either have a large family, or possibly give up your job.

I personally have a nice little plot of land that I can garden intensively to produce all the food I need, including grain, eggs, and possibly milk and meat (probably goat).

As others have said, you can take your gold with you. You can also use gold to buy previously overvalued land near a city, where you might be able to get a job and commute.

If you buy farmland, I would suggest you also have some gold. You will need it for supplies and equipment.

Of course, if you mean investing in farmland and having someone else work it for you, I don't know anything about that, so I couldn't give an educated answer.

 

[jth_ttu]

I would use it too. We have a nursery and grow plants. Im leaning towards the Idea of farmland because it is something that is useable even in a SHTF situation. Where as gold bullion has no real use that I can find other than use as money. Im just worried about land values decreasing.

 

[mtj458]

You might want to buy futures contracts of farm commodities too. I think buying actual farmland would be too much of a hassle.

 

[Dr.3D]

I would use it too. We have a nursery and grow plants. Im leaning towards the Idea of farmland because it is something that is useable even in a SHTF situation. Where as gold bullion has no real use that I can find other than use as money. Im just worried about land values decreasing.

If one had precious metals when the SHTF, and land values had decreased because of the S hitting the fan, it might be better to have the metals to buy the land at the cheaper price.

 

[jth_ttu]

If one had precious metals when the SHTF, and land values had decreased because of the S hitting the fan, it might be better to have the metals to buy the land at the cheaper price.

Thats a good point, but my thinking is that if things get bad land prices may not decrease. People have to eat and they will be trading Gold for food. And Farmland would give you a means of revenue instead of just a protection against inflation. Am I wrong on this?

 

[dannno]

Some things to consider..

Farm equipment. Do they require gasoline?

Water. Is there enough available on your land to properly farm your land, or do you have to import water?

I'd say tmosley is right, if you can get enough land to farm intensively enough to feed your family, and maybe a little more, it would probably be worth keeping the rest of your money in gold as it is more portable. If land values stay high, then the land you live on will stay high, and gold will probably climb even faster. When everything calms back down, you can use the gold to buy up a farm operation or anything else that you might want to do with it.

 

[Dr.3D]

Thats a good point, but my thinking is that if things get bad land prices may not decrease. People have to eat and they will be trading Gold for food. And Farmland would give you a means of revenue instead of just a protection against inflation. Am I wrong on this?

If the S hit the fan, there would probably be rationing or a shortage of fuel to run a tractor and you may find yourself working that land with an Ox or a Mule.

 

[jth_ttu]

You've got some good points. I wasnt worried about the equiptment because we already have it but in a complete SHTF scenario the government would likely ration and regulate everything. I could even see a takeover of Farmland in that situation. But they also confiscated all Gold Bullion during the depression.

 

[Dr.3D]

You've got some good points. I wasnt worried about the equiptment because we already have it but in a complete SHTF scenario the government would likely ration and regulate everything. I could even see a takeover of Farmland in that situation. But they also confiscated all Gold Bullion during the depression.

They don't have a valid excuse this time, they don't back their currency with gold anymore. If you are worried about confiscation of gold, buy silver.

 

[jth_ttu]

My uncle Suggested silver but he recomended investing in ETFs. I couldnt figure out why he invested in ETFs instead of just buying Bullion. Is there an advan
tage to an ETF

 

[dannno]

My uncle Suggested silver but he recomended investing in ETFs. I couldnt figure out why he invested in ETFs instead of just buying Bullion. Is there an advan
tage to an ETF

A lot of people here don't like the ETFs cause it isn't real... in other words, the gold or silver is not in your hands, and all you own is certificates, so essentially you could be cheated out of them some how, fraudulent or otherwise.

In fact, there has been quite the controversy lately:

http://www.ronpaulforums.com/showthread.php?t=214387


As you can see I've attempted to address the ETF dilemma in that thread, tmosley seemed to answer the question in post #18

 

[HOLLYWOOD]

A wise choice in fertile farmland:



I cannot tell you how many times Jim Rogers has stated we should all become farmers. There will be a time when the Chinese will be cutting out the middleman in the US and start the purchase of US assets. Farmland will be one of the priorities.

My farmland has been absolutely fantastic return in many ways, on top of SELF SUFFICIENCY & INDEPENDENCE.

PS: and gives distance to crank the Marshall Amps to "11"

 

[ILUVRP]

I opt for a small farm , farmers may be the only americans that will do ok if things get really bad in America. I don't think you would need over 30a with a house and machine shed.

You need a stocked pond, most country farm ponds are well stocked, trees, a good garden , chickens , a .22 rifle.

You would do ok.

I also had a generator that powered by a tractor PTO , put out 50kw. I had a big switch so i could turn off the power line power and use my generator .

The only big negative about a farm is taxes. mine tripled in 10 years in IL.

You can't take land with you.

Hollywood is correct, the only people in the US that have a lot of freedom are farmers. You can do about anything you want.

 

[Dr.3D]

My uncle Suggested silver but he recomended investing in ETFs. I couldnt figure out why he invested in ETFs instead of just buying Bullion. Is there an advan
tage to an ETF

Here is an interesting article that might shed some light on this subject.
http://www.gata.org/node/7908