Most people tend to wake up way too late when it comes to a recession, and ultimately they end up spending a lot of money on items that only cost more due to the recession and not because their value has increased. There are a couple of things that are extremely important to be bought before a recession hits, as these items will be in extremely high damnd during a recession.
You should buy before a recession things that will either keep their value or be even more valuable during and after the recession. If you have some money set aside then you should buy silver and gold before a recession as their prices will only go up. On the other hand, if your budget is fairly limited then you should focus on buying items that are still readily available before the recession like medicine, construction materials, and food.
One of the items which everybody should own is a bug out bag, who knows when the next recession will come, it is better to have a bug out bag than to find yourself in an SHTF situation without one Click here to check it out on Amazon.com
Approx 1000 years ago when the Roman empire was starting to fall apart they had to withdraw their armies from the British islands. As the British islands have been subjugated for several centuries they got accustomed to the Roman way of life which included currency. Imagine what their shock was when one day the Roman army packed up and left, all the people who had money found their coins to be worthless and many buried their money in hopes that the Roman empire will come back but they never did.
The people living in the British islands found themselves in an economic recession, and it took them a long time until they were able to use coins again. What I am trying to tell you is that even if things look good today, that doesn’t mean that we are safe from an economic recession, far from it. Today we live in a world with a global economy, which for you and me simply means that a country could topple the entire global economy, and most people will only notice it when the recession is already at the door.
The below list of items is for people with a limited amount of money because let’s face it, it is a tough economy and most of us don’t have money to throw out the window. The prepper should put money into items that are going to benefit him directly. I don’t believe in investing in some invisible number on the stock market that overnight can simply vanish if there is a disaster or other emergency situation. Invest in tangible items that you can pack up, carry with you, and trade for other items you might need.
My most important tip for you in what to invest before a recession is to think about the value-to-weight ratio, the higher its value and the lower its weight the better it is so this way you can carry it around with you, and the easier they are to be hidden during a recession. If you are planning to prepare for an economic collapse then check out my recent article How to prepare for economic collapse ( In 22 Steps ).
What To Buy Before A Recession
Preparing for a recession can be a prudent step to safeguard your financial well-being. When it comes to what to buy before a recession, it’s essential to focus on practical and essential items. First and foremost, prioritize building an emergency fund to cover your living expenses for several months. This will provide a financial buffer during uncertain times. Additionally, consider investing in staple food items, non-perishable goods, and essential household supplies that can sustain you and your family for an extended period.
Stocking up on toiletries, hygiene products, and cleaning supplies is also advisable. It’s important to be mindful of your budget and prioritize items that align with your needs. Lastly, consider diversifying your investments and exploring options like gold, silver, or other commodities that historically hold value during economic downturns.
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When you think of investing your first investment should be in Bullion, this is an excellent example of what to invest as this will keep its value even after an economic collapse. As for what kind of bullion it should be either gold or silver if you don’t have enough money for gold go for the silver as it is much cheaper. You can invest in silver dollars as these are easy to carry and have a high value to weight ratio.
Another benefit of bullion is that they are tangible, it is an oz of silver/gold, it is either an oz of silver/gold or not. The dollar might lose its value or in the case of economic collapse, it won’t be worth anything as there is nothing to back it up. Economically speaking for a prepper silver bullion is a great investment you can buy these for around $50. If you want to know how you should prepare if a war breaks out in your area then check out my recent article How to prepare for war as a civilian? ( In 8 Steps ).
Silver And Gold Coins
No matter if there is a recession or not the price of Silver and Gold will always go up. Smart investors always have some Silver and Gold with the main goal of selling them during the recession. There is big money to be made during a recession and odds are that the price of Silver and Gold will go through the roof. Now don’t go all in, buy some Silver and Gold coins, which have their worth in the metals themselves and not because the coin is rare, as this will be irrelevant if you want to sell it during a recession.
Usually, people, who tend to buy Silver and Gold because they are afraid of a recession tend to buy way too late, and at that time everybody is buying them thus increasing the price of them. If you have some savings then you should allocate a percentage of your savings to buying Silver and Gold. Once everybody is starting to panic and buy you can rest assured as you will most likely make yourself a nice amount of profit. A 3000 watt generator will be worth a lot of money during a recession, for more info on what it can run, check out my recent article 3000 watt generator what will it run ( Top 25 Items ).
Withdraw some cash
Most people tend to use their credit or their debit cards when purchasing, although there are still some people who prefer cash over a card. During a recession cash will have a massive demand, a lot of people will lose their income, the business will close and you might find that in most places you can’t even use your credit cards to pay for everyday items. A lot of people will be selling their stuff during a recession, you will need some of these items, and the likeliness of you paying for these items with a credit or a debit card is slim to none.
If you are planning to renovate your house then it is a good idea to buy the materials before a recession comes. During the recession, these construction materials will not have any kind of demand, which in theory should make their prices lower, but the truth is that most companies will simply stop selling until the market bounces back. There are some exceptions as some business owners will sell off all their construction materials for pennies during a recession, but generally speaking, most business owners would rather wait it out. One of the items which will keep its value even after a recession is silver, for more information check out my recent article Best silver for Preppers ( Top 5 ).
This will be an excellent item to trade especially if you can grow it on your own. If not consider investing in dried foods or rice. Dried foods in powder form would be easier to carry but it will be hard to carry on foot as much for eating plus trading. As for rice if you have the storage capacity to buy white rice it is less nutrient-rich than brown rice but it will last you for years. Brown rice is more nutritious but goes bad in approx 6 months.
Investing in weapon cases is much better than investing in some stock as you can use it either yourself or for trading it. Weapon cases will be in demand both before, during, and after a recession, although if you buy them before a recession then odds are that you will buy them for their normal price as the supply chain has not been yet broken due to the recession.
It isn’t important what kind you get but how much of them you can get as there will be a big demand for ammunition. Altho keep in mind the value to weight ratio especially if you need to carry it in your bug out bag. It is always good to have around 10 bricks of ammo on hand at all times and more if you have a bug out vehicle. Don’t have thousands and thousands of rounds of ammunition if you do not have the possibility to transport it especially if you have to take off in a hurry as it is most often in emergency cases.
In addition to trading, you can use the ammo to hunt with it or to defend yourself.
It doesn’t matter if you reload or not, this won’t be a cheap investment as a standard brick of primer is going to cost you. But in a disaster situation, hand loaders will be very useful as there won’t be an industry up for the loading of ammunition. Some people might have enough gunpowder and even a hand loader but the primers will be difficult to find if you didn’t prep well enough. You should keep around 10k primers for each weapon type you have from small pistols to large rifles.
This is a good item to trade with but due to its high-risk factor, I advise you not to invest in it. If you have some demolition license and have the know-how and means then and only then consider investing in it.
If you own a hand loader then any of the components for it are going to be a good investment such as primers, powder, and projectiles. Save all your brass, and keep all your dials in good shape. More and more people these days are getting into handloading mostly because they are saving money and they are shooting more for their given budget. But most importantly you become more self-sufficient. The whole thing about being a prepper is about investing in being self-sufficient.
If you can afford in having multiple weapons that are easy to carry and store, it will give you the ability to defend yourself and trade them for other useful items. Just like owning a sword in ancient times was expensive, pistols too will cost a lot more during a recession from which you may even benefit. For someone that is not prepared and doesn’t have a weapon, your weapon will be like a brick of gold for him.
In a situation where there is a loss of power, electronic devices will need some sort of power. Batteries are the most efficient way to carry energy with you just make sure you store them correctly as with time they can bloat and even explode making them a fire hazard.
Fire Making Tools
There are a lot of ways to make a fire some primitive and some more advanced. Equipment like matches, lighters, and flints are an excellent investment, especially the flints as they can give you hundreds of sparks with which you can start your fire.
Only buy medicine if you need it, generally speaking, most medicines have a fairly long shelf life but who knows how long could the recession last. During most recessions, there will be medicine but the odds are that the price of medicine will go up, and in some cases, if the manufacturer goes bankrupt then you might not even find the right kind of medicine which you need. If you want to know how you can get antibiotics then check out my recent article How to get antibiotics for prepping? ( Top 18 Sources ).
- Save money and establish an emergency fund to cover essential expenses in case of a financial crisis. Aim to have several months’ worth of living expenses saved up.
- Explore multiple streams of income to reduce reliance on a single source. This could include freelance work, part-time jobs, or starting a side business.
- Stock up on non-perishable food, water, medications, and other necessary supplies that can sustain you and your family during an economic collapse. Also, consider investing in basic survival tools and equipment.
How to prepare for economic collapse?
To prepare for an economic collapse, it’s advisable to focus on building a financial safety net, including saving money, reducing debt, diversifying investments, and acquiring essential supplies such as food, water, and necessary medications. It’s also important to develop practical skills, establish a network of support, and stay informed about economic trends.
What should I buy before a recession?
Before a recession, it can be wise to prioritize purchasing essential items such as non-perishable food, toiletries, hygiene products, and household necessities. Additionally, focusing on building an emergency fund, paying off high-interest debts, and investing in assets that are less vulnerable to economic downturns can be beneficial.
What happens to my money if the economy collapses?
In the event of an economic collapse, the value of currency may significantly decrease, leading to inflation and potentially making money less valuable. It’s important to have a diversified portfolio that includes tangible assets like precious metals or real estate and consider storing a portion of wealth in non-monetary forms.
What does it take for an economy to collapse?
Economic collapses can occur due to various factors, including financial crises, excessive debt, stock market crashes, political instability, or natural disasters. When these events severely disrupt economic systems, they can lead to widespread unemployment, inflation, scarcity of resources, and a significant decline in overall economic activity.