Today’s article is a quick tip for those who don’t necessarily believe all these alarming articles about bank failures, currency collapse and extreme hardship happening here in the good ol’ USA.
Wake the hell up, friend. The shyt is about to hit the fan.
Even the liberal drive-by media is running stories about the coming economic collapse. Between Washington’s criminal shenanigans, the Federal Reserve and the International Monetary Fund (IMF) skullduggery, and the swiftly-approaching collapse of the Euro, it’s hard to find anyone optimistic about the future.
When the economy collapses…or when a bank “holiday” occurs…or when the ATMs and credit card machines all stop working…what are you going to do? How will you live until things return to normal? What if things don’t return to normal?
If you’re smart enough to carry a spare tire in your car’s truck in case you should have a flat, you should have enough sense to keep some money stashed away.
Today, many businesses favor credit transactions over cash transactions. They are easier and faster. But if credit and banking should be suspended for even a short period of time…like just half a day…you will be faced with serious problems. When the ATMs and merchant credit card machines stop working, businesses will make an about face on cash instantly. Then, in order to stay open for business, the merchants will stop taking credit/debit cards altogether and only accept cash.
In the event of rapid inflation or even hyperinflation, merchants may stop accepting Federal Reserve notes (paper money) or US coinage and only accept gold and silver.
So have a cash stash in these priorities:
1. Buy a home safe.
Forget trying to cleverly hide your money. Thieves are clever too. Anchor your safe to the floor or wall.
2. Emergency cash (paper money and coins)
The minimum amount of cash you should keep in a safe at home is one month’s income. Make sure that none of your paper money is in any denomination larger than a $20 bill. Include a few rolls of quarters, nickels and dimes. Once you stash that amount of cash, forget about it. Pretend it’s not there. Don’t dip into it for any reason except an economic emergency. A great improvement to this cash fund would be to keep an additional $1,000 for each family member for buying plane tickets if you might be in a hurry to get somewhere, like outside the USA.
3. Gold and silver coins
Remember that with precious metals coins, you are not making an investment. You are protecting the purchasing power of your money. It’s all about preservation, not investment. It’s having something of value as opposed to having something that loses value.
Forget the collectible value of any coins. Rarity won’t matter much…or at all…in an economic emergency. The only things you should concern yourself with is the purity of the coin. For the most part, only choose coins of 99.999% purity in gold and silver. A one-ounce gold American Eagle or South African Krugerrand will sell for about $1,500 today. A silver American Eagle has a price around $23.00 today. What does that tell you? That you can buy a hell of a lot more silver coins with your paper money than you can gold coins. Also try to buy so-called “junk silver” coins…the old US silver coins in dimes, nickels, quarters, half-dollars and silver dollars. Although their silver content is less than 99%, they are desirable and will facilitate small transactions. Junk silver usually comes in bulk, like sacks or rolls of coins. Keep your emergency coins in the safe.
4. Gold and silver bullion
Bullion is great to own, but I recommend only buying one-ounce bars. The big reason is “spendability.” If you have a gold bar worth $1,500 and need to buy a $200 item, you instantly have a problem. If you’re going to buy one-ounce silver bars, better to simply buy a one-ounce silver coin. Put them in the safe.
If you accomplish this “cash stash,” you will be ahead of 99% of the people around you…even your family and closest friends. You will have a far better chance of surviving an economic collapse than most everyone you know. Sure, you should store food and water. But if you only did ONE THING to prepare for potential economic interruption, your cash stash is the most important thing you could ever do.
DumpDC. Six Letters That Can Change History.
© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.