Alternative investments are considered “alternative” for a reason — they often have limits to their upside, are illiquid, or have an entire set of risks that isn’t fully understood yet.

One area that you may want to take a look at is peer-to-peer or P2P lending. If you have cash that you won’t need for the next three to five years and you’re comfortable with a little bit of risk, this can be a good place to put your money. Of course, there are mainstream alternatives, as we’ll discuss below.

What is P2P Lending?

With P2P lending, you essentially become the “bank” that people borrow from. People who need money can borrow it from you and then pay you back with interest. If you’ve paid any attention to the economy lately, you know that it is difficult for people to get loans from traditional banks — and for good reason, as economic difficulties are also putting more people out of work.

Having a perfect credit history doesn’t matter much if you literally don’t have enough income to pay past-due bills.

Of course, people still need to borrow money to refinance their loan from when they decided to buy a house, or they might need the money to fund some sort of project.

As a peer-to-peer lender, you fill the role of the lender where other traditional lenders may not be willing to go — or where they charge too much interest compared to what p2p lenders are willing to charge.

Peer-To-Peer Networks

Most people don’t set up peer-to-peer deals on their own. Instead, they go through a peer-to-peer lending service or network.

There are a number of services that you could use to facilitate these deals. Most of these websites allow you to register as a lender and then transfer money into an online account.

The two most popular platforms are LendingClub.com and Prosper.com.

You can then see profiles of people who want to borrow money. The peer-to-peer lending service will get the credit history information of the borrower and give you a general idea of what to expect. Then you can decide to extend a loan to a particular borrower.

At that point, the peer-to-peer lending service starts taking monthly payments out of the borrower’s bank account and transferring the money to you. This means that you don’t have to worry about the administration of the personal loan.

The biggest problem — especially for me — is that they’re not open to investors in every state because of different state financial regulations. Because of this, it’s literally impossible for me to currently invest in P2P loans, though I plan on putting a portion of my portfolio toward them whenever it becomes legally available in my state.

Returns

The returns that you can earn from P2P lending vary, but are generally strong. You could expect interest rates somewhere between 4 percent and 15 percent, depending on the quality of the loans. Of course, some loans could default, meaning it’s possible you could lose your entire investment. The rates will vary based on the loans that you take on.

The best review of the different returns from the two main P2P platforms is from SocialLending.net.

Considerations

These loans can provide a great income on top of retained principal for investors — maybe. It depends almost entirely on the strategy used and how you sort through the different loans.

The downside to these loans is that they can be a bit risky. As long as you’re comfortable with risk, peer-to-peer loans can be an exciting way to earn returns on your investment.

How to Invest Like a Bank: P2P Lending Returns is a post from Stand Strong Research.

During an interview on Tuesday, Rio Tinto Group copper unit head Andrew Harding commented that Chinese demand for the metal could increase more than eight percent per year during the next five years. Andrey Kryuchekov, VTB Capital analyst, wrote in his recent report that concerns regarding slowing growth in China “have probably been overdone.” He explained that the nation is trying to reduce excess real estate speculation and sustain a stable rate of growth.

On the LME on Tuesday, the metal for immediate delivery closed at $114 premium to three-month contracts. This was the widest backwardation experienced since August 2008. The fee paid to borrow the metal for one day reached $40 per ton, the highest in 11 years. On Wednesday, this fee dropped to $18. Wednesday was the prompt date for LME contract holders to inform sellers of how they wanted to settle their positions.

Basemetals London analyst William Adams noted that spread tightness prior to Wednesday indicated “some aggressive short-covering and rolling forward of short positions.” LME monitored stockpiles were little changed at 261,150 but are down 30 percent for the year. On the New York Comex, copper prices for July delivery contracts increased 0.3 percent, reaching $3.6645 per pound.

Copper prices remain below their resistance level represented by the 100-day moving average. However, bargain investors have helped the metal recover from its three-month low reached earlier this week. Commodities researchers note that issues in Europe, particularly Spain, will place pressure on prices.

Silver prices, unfortunately, didn’t fare nearly as well, with the silver rate today still staying in the $30 range.

Copper Prices Today Up For the Second Day in a Row is a post from Stand Strong Research.

Volatility within the stock market doesn’t measure the direction of the price change, but rather their dispersion. Remember calculus deviations, where the differences are always squared so that the negative and positive differences are combined into one quantity. It all reflects the full measure of a pendulum swing of any particular stock or sector.

Price volatility is important for two overarching reasons:

First, volatility allows investors to buy assets cheaply and then sell when they are overpriced. “Buy low, sell high.”

Second, since the market ultimately reflects fickle investors and consumers, price volatility creates a fair amount of uncertainty. Final portfolios values vary daily, and averages fluctuate. Entire fields are dedicated to developing models to forecast the volatility of financial returns, but ultimately, no model or prediction is foolproof or definite.

With this in mind, Reuters lays out four survival strategies for investors coping with volatility:

1. Pay Attention

The old strategy of simply buying and then forgetting about your stock is a lot harder to maintain when flashing price-fluctuation headlines frequently catch your attention. Paying attention doesn’t require day trading, but it allows you to be prepared to sell losing stocks or make short gains on stocks with temporary potential.

2. Buy Strategically

“No one is really that good at reading the crystal ball,” Diane Rolfsmeyer, a certified financial planner from Lincoln, Nebraska points out. Accordingly, a survival strategy known as “dollar cost averaging” can lower the risk for new investors. Rather than investing your money all at once and increasing the chance that you bought on a bad day, divide the money and buy gradually over a few weeks or months.

For example, if you have $2,000 to invest, split up your decision into monthly buys of $500. You might buy shares worth $10 the first month, $8 the next, $5 the next, $8 the next, and $10 the last. The average cost of your shares would be $8.20, rather than purchasing all your stocks the first month and having the average cost $10.00.

3. Play It Safe

Rather than living on the edge and trying to ride the volatility, you could insure against it. As Jason Ware, an analyst with Albion Financial Group says, “volatility is usually reflective of fear, so safe assets like gold and Treasury bonds will continue to do well when volatility spikes.”

4. Cherry-Pick Your Stocks

During 2009 and 2010, it was easy to devote attention to a particular sector of the economy simply because many of the companies associated with that sector maintained the same price trends and volatility fluctuations. Now, however, recent volatility is resulting in individual stocks, of the same sector, going their own way—partly because the big sector schemes have played themselves out, according to Ware. Now, more than ever, it’s important to weed through the trends and look for quality products and sustainable brands that reflect thriving and adaptable companies.

How to Invest in Volatile Markets is a post from Stand Strong Research.

Greece, with a debt-to-GDP ratio around 160%, is hoping for the next 8 billion euro payment from its original bailout.

European policymakers are caught between a rock and a hard place. Bailing out Greece would use up political capital with Germany, who believes that the continued aid only profligates the European way of living outside their means. German chancellor Merkel is under pressure from her voters not to allow a bailout, considering that previous unpopular bailouts of Portugal, Ireland and Greece failed to stop the crisis from spreading.

A bailout would also be only yet another short-term solution. As Reuters points out, “Greece will get a few more weeks’ breathing room.”

But, to look the other way and allow Greece to default would have a number of negative side effects. French voters, in contrast to the Germans, are pressuring President Sarkozy not to allow a Greek default. After witnessing the collapse of the US Lehman Brothers bank in 2008, they believe that their investment firms are at risk. As Sarkozy said in a meeting with the Greek Prime Minister, “The entire banking system around the world paid the consequences.”

Reuters summarized the viewpoints of Germany and France. “The instinctive French response to the crisis remains ‘more solidarity’ — read: lend more public money to Europe’s weaker brethren. The German reflex is ‘more discipline’ — read: tougher punishment for deficit ‘sinners.’”

The United States’, after Wall Street lent considerable funds to European investors, are now more vested than ever in the situation. As Richard Reich, former Secretary of Labor, points out, “a default by Greece or any other of Europe’s debt-burdened nations could easily pummel German and French banks, which have lent Greece (and the other wobbly European countries) far more. That’s where Wall Street comes in. Big Wall Street banks have lent German and French banks a bundle… Wall Street has also insured or bet on all sorts of derivatives emanating from Europe – on energy, currency, interest rates, and foreign exchange swaps.” Therefore, as the NASDAQ news service makes clear, if any European country defaults, whether it be Ireland, Portugal, Italy, Spain, or Greece, investors will flee German and French banks—directly impacting US lenders.

Despite any solution that would or could be implemented, it’s doubtful that any significant improvements would result in the short term. As the Economist notes, “Even if the euro-zone crisis were to be solved tomorrow, the region’s GDP would probably shrink over the coming months.” This delay is easily understood, considering the massive time gap between the slow, consensus-based policymaking and the market’s paradoxical need for both quick fixes and long-term solutions.

We will eagerly wait for October 18th.

The Truth About the Greek Bailout is a post from Stand Strong Research.

1. Health Insurance

The importance of having health insurance greatly depends where you live in the world and what health system your government currently has in place. Those living in America find it hard to get even basic health care without insurance, which to people in a number of other countries is hard to comprehend. In places like the UK and Australia, where emergency care is free to all there is often little need for health insurance.

However, many choose to opt for health insurance to increase surgery wait times or to be able to choose their centre of care. Australia’s Medicare system is one of the best there is, where people sometimes pay a small fee to cover medical costs while the rest is reimbursed.

Of course, there are much less people in the country so the system isn’t quite as overpopulated as somewhere like the UK – their system, which was initially not designed to deal with 70 million people, is straining under the weight of an ever-growing population, so many more are choosing private health care. You are then guaranteed speedier wait and surgery times, so if you have a problem that needs attending to in a timely fashion, it is definitely worth the monthly expense.

Of course, most people sign up to health insurance for what may happen, few policies cover existing conditions, or do, but a premium. It is especially useful for people who have known familial linked disorders, like cancer, diabetes, heart disease or stroke.

2. Life Insurance

Amongst the various types of insurance policies available, few people opt for insuring their lives, yet death is one of the few certainties in life. The policies pay a set lump sum on death, but can often cover terminal and critical illness too. It is worthwhile for anyone with dependents or those who share a mortgage; in the event of your death at least your bills will be looked after, taking the financial pressure of your loved ones.

Always double check the policy terms – many life insurance policies will not pay out in the case of suicide or accidental death. And be aware of the differences between life insurance and assurance.

Insurance policies may run for a certain term and once payments stop you are no longer covered, whereas Life Assurance offers a guaranteed payment on death whether payments were stopped in the past, or not.

3. Dental Insurance

A visit to the dentist is getting more and more expensive as the years go by. Those lucky enough to live in countries where dental treatment is subsidised rarely appreciate they have it so good. While in many countries, trips to the dentist are a big drain on the bank balance, especially if you have children who need orthodontic treatment.

To avoid having to forego dental treatment because of lack of funds paying into a dental plan can help when you need it most. Yes, there are financial plans available through most dentists, but only if the minimum spend is a good few thousand dollars. With dental insurance you can generally claim after each trip.

4. Home Insurance

Whether you own your own house or not, having your contents insured against fire, theft and damage is rarely a waste of cash. When precious possessions are at risk people often don’t think too long about handing over money to insure them.

Granted, certain things like photographs and family heirlooms are never replaceable, but in the event of fire, flood or damage it’s always good to know that you’ll be able to start again when the insurance money comes through.

A stipulation of renting out your home is to have landlords cover, as well as buildings insurance, which is a good thing, so if a tenant wreaks havoc in the property, your payout may cover repair and refurbishment costs.

5. Disaster Insurance

A relatively new kid on the insurance block, disaster insurance helps protect against certain rare, but financially devastating events and has become a hot topic in sight of recent natural catastrophes. Those living in an earthquake zone, bush fire area or region prone to hurricanes and floods may already have some form of insurance through their home insurance policy, but if not it is a wise choice to look into if you can afford the expense.

6. Credit Card Insurance

Sometimes referred to as credit card repayment protection, card insurance offers help with repayments in various circumstances. Should you become ill or unemployed involuntarily the policy will ensure more than the minimum payment is covered on your card, and if you are permanently disabled or die the cover will pay the full amount of your outstanding bill, usually up to a specified amount.

This type of insurance is worthwhile if you’re not inclined to pay off your debts every month, and often includes other features, i.e., some plans offer travel insurance, or car rental insurance if you use your credit card to book, so it depends on your lifestyle whether this type of insurance suits. Just check what each credit card offers when you’re comparing them before you settle on one.

7. Travel Insurance

Few people travel these days without travel insurance, either because they’re very well organised, were offered it when booking their trip, or have been badly marred by past experience and don’t want to have to learn the lesson again! There’s no doubt travel insurance is worth it, even for short trips, as so many variables can go wrong. The only trouble you have is to choose the right policy.

Online policies are becoming more and more competitive, and depending where in the world you live there are some great deals on offer that cover all eventualities, including winter sports and diving cover.

8. Car Insurance

In most countries car insurance is compulsory; however, it doesn’t mean that everyone pays it. There are always a few chancers on the road who think they can get away without insurance… until there’s an accident. And, more often than not, it’s the people who avoid paying their insurance that end up needing it.

If an uninsured driver is involved in a crash and it’s their fault, they get landed with the repair and medical bills, so it’s just not worth the risk unless you fancy yourself wearing a prison uniform.

9. Pet Insurance

Tiddles, man’s best friend, or your duck are expensive little creatures to have around. Illness or injury are sure things during their lifetime, and vet’s bills are rarely cheap, so taking out some form insurance is wise to cover costs when things go wrong.

Of course, like any policy you may be paying a lot of money and never need to claim, and there are probably many other policies you’d prefer to pay towards if you’re not exactly rolling in it, so it’s not for everyone.

But if you’re one of those people who fall in love with every stray on the street or would want do anything possible to keep your pet alive should they contract a terminal illness, then maybe pet insurance is worth it for you.

10. Funeral Insurance

It’s not something people often plan for, after all, most people have no idea when they’re going to die, they only know it will be some day, so paying out a monthly premium for funeral costs seems overly cautious. Yet, the average cost of a funeral is thousands of dollars, and not something we normally save towards. However, there are some people who could still benefit, such as the infirm and elderly. Those who know their time to move on is not far away will be comforted in the fact their funeral costs will be covered when the times comes.

Don’t Forget to Read the Fine Print

Remember, before signing up to any insurance policy think long and hard as to whether you really need the cover. Those who sell insurance depend on the commission from the policies they sell to make a living, which is why they will try their hardest to get you to sign up to their policy, often using as many scare tactics as they can muster to appeal to your sensitive side. Stand strong and only sign an agreement once you read the terms and conditions, including all the tiny fine print – as boring as it is, it’s incredibly important, otherwise you may find when it comes to making a claim you weren’t insured for what you thought.

Read, read and triple read before signing anything.

Kristy Ramirez writes for Life Insurance Finder where she helps people to compare life insurance quotes and select the best policy to meet their needs at the best possible price.

10 Reasons You Should Get Insurance is a post from Stand Strong Research.

Even if you are already wealthy, some thought on this topic is worthwhile. What would you do if some act of God or of government, a catastrophic lawsuit or a really serious misjudgment took you back to Square One? One thing about a real depression is that everybody loses. As Richard Russell has quipped, the winners are those who lose the least. And as far as I’m concerned, the Greater Depression is looming, not just another cyclical downturn. You may find that, although you’re far ahead of your neighbors (you own precious metals, you’ve diversified internationally and you don’t believe much of what you hear from official sources), you’re still not as prepared as you’d like.

I think a good plan would be to approach the problem in four steps: Liquidate, Consolidate, Create and Speculate.

Step 1: Liquidate

Chances are high that you have too much “stuff.” Your garage, basement and attic are so full of possessions that you may be renting a storage unit for the overflow. That stuff is costing you money in storage cost, in depreciation and in the weight of psychological baggage. It’s limiting your options; it’s weighing you down. Get rid of it.

Right now it has a market value. Perhaps to a friend you can call. Or to a neighbor who might buy it if you have a yard sale. Or to some of the millions of people on eBay. A year from now, when we’re out of the eye of the financial hurricane and back into the storm, it will likely have much less value. But right now there’s a market. Even if most people are no longer wearing those “He who dies with the most toys, wins” T-shirts that were popular at the height of the boom, there are still buyers. But the general standard of living is dropping, and mass psychology is changing. In a year or two, you may find there aren’t any bids and the psychology of the country has changed radically. People will be desperate for cash, and they’ll all be cleaning out their storage units (partly because they can’t afford the rent on them).

Liquidate whatever you don’t actually need – clothes, furniture, tools, cars, bikes, collections, electronics, properties, you-name-it. You’ll be able to re-buy something like it, or better, cheaper. Just as important, you’ll feel light and mobile. Unburdened by a bunch of possessions that own you and weigh you down. It will definitely improve your psychology, which is critical to the next stage. And the cash it generates will be helpful for the rest of the plan.

Step 2: Consolidate

Take stock of your assets. After Step 1, that should be a lot easier, because you’ll have less junk but a lot more cash. You’ll already feel more in control and empowered. And definitely richer. But your main assets aren’t money or things. It’s the knowledge, skills and connections you possess. Take stock of them. What do you know? What can you do? Whom do you know? Make lists and think about these things, with an eye to maximizing their value.

If you’re light on knowledge, skills and connections, then do something about it – although if you’re reading this, you probably already live life in a way that builds all of those assets daily. But there’s always room for improvement. Think the Count of Monte Cristo. Or, if you’re not so classically oriented, think Sarah Connor after she met the Terminator.

Part of this process is to look at what you’re now doing. The chances are excellent there’s a better and more profitable allocation of your time. Even successful rock stars tend to reinvent themselves every few years. You don’t want to get stale. That leads to Step 3.

Step 3: Create

Remember, the essence of becoming wealthy is to produce more than you consume and save the difference. But it’s hard to maximize value working for somebody else. And when you’re given a job, it can be taken away for any number of reasons. There is cause and there is effect. You don’t want to be the effect of somebody else’s cause. You want to be the cause for everything in your life. That implies working for yourself. At least turn your present employer into a partner or an associate.

Perhaps go through the Yellow Pages (while they still exist), page by page, line by line, and see what you can provide as a service for the businesses advertising there. I promise you, they’re all looking for someone to come along, kiss their world and make it better. Think like an entrepreneur at all times. Remember that there is an infinite desire for goods and services on the part of the 6 billion other people on the planet. Find out how you can give them what they want, and the money will roll in.

I’ve said many times that I believe you could airdrop me naked and penniless into the heart of the Congo, and by the time I emerged, I’d not just have survived, I’d come out wealthy. And, believe me, I don’t think wealth is by any means the most important thing in life; it’s important but should be considered a convenience, not an imperative. Not that I’d want to be airdropped into the Congo at the moment; I’ve gotten a bit lazy, I have other interests, and you can’t be everywhere and do everything.

But now that I think about it, if I wanted to make a real fortune today from a small base, I might prefer Africa to any other continent. As an educated Westerner, you can quickly meet anyone, on an equal level, much more easily than you could at home. If you have a reason that makes any sense at all, you can be in the office of the president within a week. These countries are all plagued with incompetence and corruption, they need everything, and they’re full of untapped resources and talent. This all inures to the great advantage of a foreign entrepreneur.

Here’s an idea. For your next vacation, book a trip to Cameroon, Togo, Gabon, Zimbabwe or Angola. Go through the Yellow Pages in the capital and meet everybody who is anybody. The chances are good you’ll come up with several deals in the first week alone. If you can’t find the time, send your kid who’s just out of school and idiotically thinks he may want to misallocate time and money getting an MBA. This idea alone should be worth a million dollars. Or, as I would prefer to think of it, 700 ounces of gold.

But to an economist, money, like all goods, has “declining marginal utility.” In other words, the more of something you have, the less you need or want the next unit. Of course more is always better, but it’s unseemly, even degrading, to pursue anything beyond a certain point.

When I was in Toronto a couple months ago, I spoke with a Chinese friend who, I believe, is worth at least $250 million. As he waxed philosophic, he allowed that he didn’t feel he really needed more than 30 extra large to live exactly as he liked. I agreed, in that meals in the best restaurants, the finest clothes, cars and houses only cost so much. And it’s well within a conservative return on that capital, without ever even touching the principal. Is it worth it to get more? Perhaps not, unless your interests in the rest of life are entirely too narrow. The point of money is to allow you freedom, not make you crazy with getting more.

That doesn’t rule out speculation as an avocation, however. More – everything else being equal – is still better.

Step 4: Speculate

You’ve got money. Now you have to keep it and make it grow, because staying in the same place amounts to going backwards. That’s partially because the world at large will continue getting wealthier, even as the dollars you own lose value.

In the past, I’ve discussed why a lot of old rules for success are actually going to prove counterproductive over the next few years. Saving with dollars will be foolish as they dry up and blow away. Investing according to classic rules will be very tricky in a radically changing economy. Most people will try to outrun inflation by trading or gambling. The markets, which are the natural friend of productive people, will perversely prove very destructive to them in the years to come. You’ll know when the final bottom in the stock market has come: The average guy won’t want to hear about the stock market, if he even remembers it exists. And if he does, he’ll want it abolished.

Instead of becoming a victim of inflation and other politically caused distortions in the marketplace, you can profit from these things. Rational speculation is the optimum approach.

What to Do If You’re Already Wealthy?

Perhaps, however, you’ve already covered all the financial bases to your satisfaction. Quo vadis? I have several thoughts on the meaning of wealth. You may find some of them of value as prices of everything fluctuate radically in the years ahead.

First, recognize that wealth is a high moral good. Don’t feel guilty about having it or about wanting more.

If you’ve already accumulated and deployed enough capital to allow you to jump off the golden treadmill, congratulations: chances are high that you are an exceptional human being. I say that because the moral value of being wealthy is underrated. I don’t mean that in a Calvinistic way, in that Calvin believed Yahweh rewarded the righteous by making them rich. But I do believe that productive people – people who work hard to provide goods and services for others – definitely tend to be wealthier than unproductive people. They deserve to be. And since we don’t live in a malevolent universe, people generally get what they deserve. So, yes, wealth is definitely one indicator of moral excellence.

Sure, some wealthy people got that way by lying, cheating and stealing. But they’re exceptions. It’s much easier to become wealthy if (in addition to having virtues like diligence, competence and judgment) you are known to be truthful and honest. Those who automatically think ill of the rich are, at best, paranoid fools. Put it this way: Rich people may lack some virtues, but they definitely have at least a few that made them rich. Poor people, on the other hand, will certainly lack some virtues, and they’ll definitely have some vices that kept them poor.

I’m a fan of some aspects of Gurdjieff, the late 19th  to mid 20th century Russian mystic, who was also a merchant adventurer at some points in his colorful life. He said that anyone who successfully employed at least 20 other people must be considered at least partially enlightened and a type of guru. That viewpoint always resonated with me. Self-made wealthy people may not be saints or mystics or intellectuals or even especially thoughtful or moral. But they’ve proven they’re better than the average bear in at least one important way: they can create and conserve wealth. And they’ve thereby eased everyone’s path to further accomplishments.

Second, figure out your purpose in having money.

Sure, money makes life easier. And it’s nice how it enables you to assist people you like with material things. But I strongly suggest that you not take too short a view on this matter. Accelerating advances in medical science are not only lengthening human life expectancy, but new developments now in the works have the potential to vastly improve your capability and health as well.

Is it possible to live to age 200, with all the wealth, knowledge and wisdom that implies, while maintaining the body of a 30-year-old? Not yet. But the prospect is on the horizon. It will, however, be available only to those who can afford it. Ray Kurzweil makes a case that the Singularity is near, and I buy his reasoning. It would be tragic indeed if anyone frittered away his wealth, thinking he wouldn’t live very long, and then succumbed to a self-fulfilling prophecy, not because of medical difficulties, but because of financial difficulties.

Third, don’t give your money to charity.

Entirely apart from showing a lack of both imagination and foresight, it’s a complete waste of good money, pure and simple. Contrary to popular opinion, it rarely does any good; it often does great harm. The whole concept of charitable giving is corrupt and desperately in need of a complete rethinking.

Fourth, if you do care about posterity (who knows, you might be reincarnated…), and on the chance you don’t make it to the Singularity, carefully consider how to dispose of your estate.

For one thing, there’s no reason to automatically leave anything to your children – unless they deserve it. The notion that someone should inherit just because he shares your genes is flawed and thoughtless. The example of Marcus Aurelius leaving the Roman Empire to his worthless son, Commodus, should be instructive. Wealth should be left to someone who is most capable of increasing it – at least if you want to benefit humanity in general. And, yes, I’m quite aware that humanity in general may deserve absolutely nothing.

At a minimum, consider that memes are far more important than genes. It’s wiser, therefore, to leave your wealth only to individuals (related to you or not) who will carry forth values you hold dear and are worthy of the wealth. If nothing else, make sure you disinherit the government.

Also consider that dividing wealth dissipates it and generally makes it less useful. If you have a million dollars, you could leave a thousand dollars to each of a thousand people. But apart from the fact that it’s unlikely anyone knows a thousand worthy people, that much money is only enough for a modest vacation or a few baubles. The larger the pool of capital, the more ways it can be used, the more creative power it has, and the more likely it will be conserved and used creatively. I favor the Roman system, in which one could adopt children of any age – but always after you could see what their character was. You might want to do that if your own kids don’t make the grade.

The Bottom Line

If you want serious money, you have to get serious about money. You need to understand these fundamentals and never forget them. Don’t let all the garbage reported in the financial media you read, see or hear confuse you about what money really is. Don’t consume more than you make: save! Don’t spend: invest!

[Americans are more frightened than ever – which investments are still safe, how can you protect your assets? Make no mistake, the US is in a debt crisis of epic proportions that will get much worse before it gets better. But there are ways to save your wealth: Register now for our free online event, The American Debt Crisis.]

How to Make and KEEP Your Money is a post from Stand Strong Research.

• Why Gold Hit 1600 and Silver Hit $40. This article explains what just happened, why it happened, and what to expect over the next few months. This is different than my “five year” article explaining what to expect over the next five years. Read more.

• How to invest… without stocks. You don’t have to only invest in stocks. They’re just one investment vehicle. There are other ways — I list the 8 more popular methods, and they don’t require Wall Street. Read more.

• This is the best book of the week. Every week from now on, I’m going to review a book that has been influential to my education in investing and economics. This is the first, and it’s by Jim Rogers — he explains the best place to put your money in the next decade. It’s not just gold and silver — it’s mostly other stuff as well. Read more.

Remember, just because gold and silver is going up doesn’t mean it’ll be that way forever, or that you should make risky investments for gold and silver. Risky is always risky, no matter what the asset is.

That’s what separates us from most other investors — we’re not always anti-gold or pro-gold. We’re honest and realistic. I’m not buying gold right now because I think gold is magical and is always going to go up — I’m buying because I understand economics. I’m sure you’re the same way — unfortunately, few are.

Over the next few weeks, we’ll keep learning more and more strategies for investing in precious metals, as well as other basic strategies for just beating inflation and finding security during economic insanity.

This next week, I’ll be publishing an article on “wealth cycles”, an important economic event everyone absoluteyl should understand. It explains why the best time to buy gold and silver is, when to buy real estate, when to invest in stocks, etc. You’ll learn more next week.

Remember to click “like” on the articles and to post them on Google Plus or Facebook. That allows us to focus on our writing rather than marketing, and we both want that to happen.

Thanks again. If you have any questions, check out the Frequently Asked Gold Questions, or just email me.

Gold hits all-time high is a post from Stand Strong Research.

The stock market is also absolutely and hideously volatile and absurdly risky. Bonds can be much safer, but they’re almost always very low-earning the safer they are.

Plus, even if your stock is performing well, there’s always a risk of fraud, the entire market taking a plunge regardless of stock, and you have no control over the company unless you own a huge portion of said company.

The Best Alternatives to Stocks and Bonds

This isn’t the first time I’ve said these things, and I’ve been receiving a lot of emails and messages from readers who want to know what they should do if not stocks or bonds. Here are some alternative ways to invest

Because of this, let’s look at some alternatives to the stock market when looking for proper investments. These are all potentially lucrative moves — my favorite are those dealing with land, property, and commodities.

• Woodland. If you can get into this asset, it’s been hands down one of the best investments to own in the last few centuries. It typically outperforms the S&P 500, out-earns inflation by a mile, and is less volatile than the stock market. Less risk, more rewards. The only catch is it usually takes millions of dollars worth of land to get started, unless you want to oversee the work yourself. There are some woodland stocks, but they’re publicly traded, meaning they can be pretty volatile. The majority of woodland owned and harvested in America is privately owned, meaning if you know how to hunt and peck, you’re probably more likely to find obscure deals.

• Farmland. Similar at least in strategy to woodland investing, investing in straight-up farmland has been one of the oldest investing strategies in the history of mankind. If you own food-producing resources, you at least won’t starve. Because food shortages and food prices are increasing, this is one of the best investments for the next few decades. You can buy farmland and also lease it out to larger agricultural companies for a mostly stress-free, almost passive income.

• Small Farm. If you’re a more “hands on” kind of person, running a small farm can be a great move. Almost anyone with substantial retirement savings can buy a small rural farm and purchase enough cattle to live off of with a healthy income. Again, this isn’t for everyone.

• P2P Lending. This is something mainstream investing publishers don’t cover nearly as much as they should — lending to regular people. P2P lending now happens online through websites like LendingClub and Prosper. I’ll be writing more about this in the coming weeks, so make sure to subscribe.

• Small Business. You don’t have to own publicly traded stocks to invest in a long-term business. You can simply invest in your own small business. For example, I own Stand Strong Media, which publishes Stand Strong Research. This has been, by far, the most important investment decision of my life. Of course, starting a business is absolutely incredibly risky — but if it pays off, it really pays off.

• Private Equity. In line with the idea of owning your own business, private equity allows you to own part of a business that isn’t publicly traded. While this means it’s less liquid, it often usually means you get a higher chunk of income, and are more likely to find a cheap deal. Private equity is great — especially if you have enough money to influence leadership and direction of the company, assuming you understand business.

• Gold and Silver. Bullion isn’t publicly traded, though plenty of ETFs are trying to at least make this not-always true. You can learn more at gold and silver prices or live gold prices.

• Rental Property. Again, this one is more common than most of the above investments, but can also be risky. If done correctly, this can allow you to make a fantastic “passive-ish” income by owning a few houses.

Don’t forget — diversification isn’t just good for a stock portfolio. It’s always good to diversify. If you’re going to invest at all, try to invest in at leas 3-4 of the above investments.

Owning a rent home, P2P lending, some farmland being leased out, as well as some boring publicly traded companies can allow you to find a level of financial security that most can only dream of having.

8 Ways to Invest Without Buying Stocks is a post from Stand Strong Research.

You can read more about what might happen if the US defaults on its debt at this article by Bloomberg. If you want to prepare for what might happen, subscribe to us.

What Happens When the US Defaults on Its Debt is a post from Stand Strong Research.

Because I think it is important for every organization to constantly challenge its own assumptions, I’ve long acted as something of a devil’s advocate here at Casey Research. By constantly pushing our analysts to revisit their assumptions and calculations, it is my firm intention for us to spot the fork in the road that indicates it is time to shift strategies away from investments designed to do well in the face of a currency debasement and to something else.

Being attentive to that fork in the road is hugely important, because even though we urge our subscribers not to overdo their exposure to inflation hedges, we recognize that many do. Many a good person had their clocks cleaned in the early 1980s solely because they had become overly enamored of their precious metals – so much so that they stopped thinking of them as an asset class and began thinking of them more in the terms one might associate with an amorous dinner date. Thus these investors were utterly unprepared when said date stood up and broke a dinner plate over their heads.

With that brief setup, I want to make our views clear: While we correctly anticipated the recent correction in precious metals, this correction is but a blip in a secular bull market that is very much intact.

Doug Casey has often said that the unfolding crisis is going to be even worse than he expects (which is saying something), and the longer the rest of us at Casey Research study the tea leaves, it is hard to disagree that the Greater Depression is still ahead.

Consider:

• The eurozone is growing increasingly desperate. Watching the heads of Europe dither and debate over further bailouts to the unhappy Greeks and other troubled PIIGS – before ultimately reaching back into the pockets of the equally unhappy citizens in Germany and the decreasing number of still-functioning economies in the eurozone – reminds me of a down-on-his-luck blackjack player. He’s mortgaged his home to play the game but is now down to his last chips. He doesn’t want to risk his remaining resources but has no choice, because to walk away now will mean taking up residence in a cardboard box. And so, reluctantly, he shoves across another pile. The problem is that the game is rigged – and not in his favor. As the PIIGS start to default and either leave the eurozone entirely or are shunted off into some sort of sidecar organization, there will be great volatility in the euro and in the European markets.

• The U.S. debt situation is far worse than anyone in Washington is willing to admit. We keep hearing calls for more, not less debt creation. But if people would stop kidding themselves and tally up all the many demands the U.S. government has against it, the actual debt-to-GDP ratio rises to something on the order of 400% – and even that is likely understating things. The fundamental flaws in the U.S. monetary system – flaws that have given license to the bureaucrats to smash the limousine of state straight into a wall – have required a remaking every 20 to 30 years or so. The problem is that there is pretty much nothing else that can be done to save the status quo at this point, and so the monetary system is likely to collapse. That means big changes ahead, including – or perhaps starting with – a poisonous ratcheting up of interest rates.

• China’s miracle mirage. While having aspects of a free market, the hard truth is that China is run as a command economy by a cadre of communist holdovers. This is apparent in the cities that have been built for no purpose other than creating jobs and boosting GDP. It is also apparent in the growing inflation in China – the inevitable knock-on of the government’s decision to yank on the levers of money creation harder than any other nation at the onset of the Greater Depression. Meanwhile, signs of social unrest crop up here and there. Though so far they have been swiftly put down, there is no question that the ruling elite has to walk a very fine line. If the Chinese economy stumbles seriously, all bets are off. That we are talking about the world’s second-largest economy means this is not of small consequence.

• Japan is essentially offline. Reports from friends in Japan – including one who was initially skeptical about the scale of the problems at Fukushima – have now changed in tone by 180 degrees. You can almost feel the growing sense of desperation as the already massively indebted nation begins to slide toward an abyss. There is little standing in the way of the world’s third-largest economy’s slide.

• The Middle East is in flames. This, too, is far from settled. As usual, the U.S. government has been hopping here and there in an attempt to maintain its influence, but at this point pretty much everything is up for grabs. The odds of the U.S. retaining the same level of influence in the region that it has enjoyed over the last century are slim to none, especially now that even the Saudis are shipping more of their oil to China than to the U.S. Again, big changes are ahead.

I’m convinced that nearly everything about today’s world is going to change over the coming decade… much of it for the worse.

But that doesn’t mean that people – you – can’t come through this in more or less good shape, just as our parents and grandparents made it intact through the last Great Depression. Pay attention and take action, and you’ll do far, far better than most.

Some investment ideas…

First and foremost, protect yourself against the collapse of the U.S. monetary system. It is not as simple as ducking into the nearest coin store and loading up, though that should certainly be one part of your strategy. Between now and the endgame that leads into what we can only hope will be a new money based on something tangible, there will periodically be opportunities to make big moves with your portfolio.

I could give you a big pitch for our precious-metals-oriented services here, but won’t. I will say, however, that if you are new to the sector, do yourself a favor and sign up for our three-month no-risk trial to BIG GOLD – and do it today, so you can begin bottom fishing.

As Doug also likes to say, you should do whatever you want in this world, as long as you are willing to accept the consequences. If you are willing to risk going down with the ship, then do nothing.

Some other investible ideas…

* Everyday essentials. Energy is the classic essential. Sure, energy use and prices will ebb and flow with the economy, but ultimately everyone uses energy every day, and the people in emerging markets want to use a lot more of it. Carefully thought-out investments in energy, ideally bought on the dips, belong in everyone’s long-term portfolio.

* Breakthroughs to a brighter future. Throughout modern history, companies that make significant technological advances transcend bad economic times. Do you think that the company that finds a cure for a common variety of cancer will be weighed down, even by a stock market crash? Hardly. In cautious amounts, these sorts of potential breakthrough stocks belong in your portfolio.

* Investing in the inevitable. A ton of charts and data point to just how unusual and unsustainable today’s low, low U.S. interest rates are. When these sorts of baseline trends eventually change direction, they tend to move in the new direction for years, and even decades. No one can pick the bottom, but anyone who is paying even a little attention can and should be getting positioned to profit from a sea change in U.S. interest rates while they still can.

* One foot over the border. History has shown that having even one foot over the border can make the difference between losing everything and coming out just fine. Internationalizing your assets is not always easy or convenient, but that doesn’t make it any less urgent that you do so.

As for crisis investments, no one has been focused on that longer or better than Doug Casey and the team here.

The bottom line is that while the scale of the crisis is beginning to become more widely apparent, and reading and thinking about it can become fatiguing for those of us who have been on this story from the beginning, the base case for a Greater Depression is fully intact. We need to gird our loins and continue to take active measures to prepare – with the caveat that even in this base case, there are prudent measures you can take to ensure that not all your eggs are in one basket.

[Gold and silver are still the best protection for any portfolio… especially now that China and other countries are getting ready to dump the U.S. dollar. Read more on how dangerous the situation is, and how you can come out ahead – free report here.]

The New Great Depression is Starting Now is a post from Stand Strong Research.