Updated: Sep 26, 2022
Who watches over your gold and silver or diamonds?
Do you trust, Bitcoin, or Silver and Gold, or Fiat? "How" do you watch over your treasure?
Do you self custody and use an offline wallet for your crypto? Do you keep all your dollars in a bank or an IRA. Do you keep a reserve on hand of precious metal and cash for events that may cause an extended online outage?
I use this analogy to represent what is valuable to you. What do you treasure and what holds its value. What do you trust to hold on to long term? What do you use to trade for goods and services, and how do you secure those assets or hold them for future use?
Can you trust the items or assets you hold to keep their value? What will happen if you hold them for a year or two? Will they still be valuable and will they still be liquid so that you can spend or trade them as you wish?
When you can answer this last question in the affirmative, then I would propose that you trust your current form of currency. Whether it be gold or silver or US Dollars or Crypto or maybe a combination of these and more.
What do you use to store up value?
When an asset holds its value for a trusted time period, when you can spend it as you please, and you can safely store it for future use and safe keeping then I would say you have a trusted form of currency. Of money.
Today as you read this, what do you trust? Do you trust the US Dollar to hold its value?
Do you trust that the car or house you purchased will hold its value? Do you trust the constant online advertising literally screaming out the solution to declining value and preaching recession and doom?
In my 6 plus decades of using money (US Dollars) I have seen my purchasing power and my earning power diverge from a parallel path. Here is a true story about the divergence in value vs known commodities over a period of 60 years.
At one point in time, I would mow a neighbors lawn for $3.50. At that same period in history, I could go to the corner grocery store and buy a snickers bar and a cold bottle of Coke for $.10 (one thin dime). Since I was only 8 yrs old when I started working; I was not worried about minimum wage laws. Capitalism seemed the best way of doing business.
I went to a prospective customer that had an un-mowed lawn and knocked on the door. I offered to mow the lawn for a set price and if we agreed on a price I did the work. If not, I moved on down the street and kept looking for prospect.
I had no clue what inflation was, but I always knew when my quarter or dime would buy less and less.
In my 6 plus decades of using money (US Dollars) I have seen my purchasing power and my earning power diverge from a parallel path. Here is a true story about the divergence in cost vs value of known commodities over a period of 60 years. During one time period a war was driving the cost of commodities across the board.
Gas in the US could be bought for 11 cents a gallon. In the war zone, Whiskey sold for a dollar; Cigarettes for .11 cents a pack. A small olive drab can of peaches traded for 600 rounds of ammo. Lumber and reenforcement materials to build a bunker could be had for 10 cartons of cigarettes, some whiskey and maybe 10 Boxes of Ammo. All of these numbers were negotiable . So supply and demand skewed the cost and value. There was constant liquidity and commerce was lively. Oh did I love the peaches in the C-ration boxes. Did I mention that a US Army private was paid $69.10 a month. Can you see how prices have changed in 50+ years.
What will you do to with your treasure today?
You see from the prior paragraph that not all treasure is shiny. Value and prices are subject to supply and demand in a volatile economy. Then , factor in inflation. If you saved one of those dollars from circa 1967, today that dollar would be worth $9.14 ( using compound interest). Today, you have some hard choices to make in regards to your treasure. Do you hold it your self, do you put it in a bank, do you let a money manager invest for you? What do you see in your future knowing that the inflation rate is climbing and the value of each of your dollars is shrinking? How do you forecast the value of any one currency or commodity?
What will you do during a time of civil unrest and/or power outages with out access to your on-line treasure?
Do you have a plan or are you going to "wing it"?
My advice on this (and most subjects I write about) is that my advice is worth every penny you paid for it. I offer a money back guarantee if you are not satisfied or even if you are slightly amused. So, what to do? My main goal is to start a conversation. There are thousands of books and online how-to's that can describe many and varied situations and unique circumstances.
Plan, make a plan, test your plan, change and tailor your plan, and most of all plan for failure. Things happen. Worse things happen when you don't plan and execute that plan.
If this last sentence did not get your attention, then pay attention now. Do Your Own Research. Don't let the fear mongers or the hucksters influence your buying or selling., much less your investments.
You worked hard to get where you are. Your work is not over. Proper planning will give you freedom from worry and confidence during uncertain times.
Work hard and plan as there are legions that would have you part with your treasure. And not all treasure is physical. What would you pay for a good nights sleep when you are in the middle of an extended sickness or a war zone.
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