Monthly Archives: June 2018

How to Store Your Wealth in an Uncertain Economy

Over the years, I have not been afraid to say that I believe the US Dollar is a large scale, inter-generational scam and that the physical notes are valueless. Right now, it appears to have value because everybody is forced to use it in commerce, but I believe that one day this whole illusion will shatter and everybody will see what it truly is; worthless paper.

As someone who has been a cryptocurrency enthusiast for years, I believe this will be really good for the crypto market. When the US dollar inevitably collapses, people will flock to the top cryptocurrencies as a safe haven, and drive the price up while they do so. My only cocerns with cryptocurrency right now is that the market is almost entirely speculative (meaning there isn’t much use, and people are trading based on what they think they are worth and not their actual value that comes from usage). Nobody really knows the value of cryptocurrency right now, and liquidity is an issue. It’s not like I can go to any store and purchase using Bitcoin, Ethereum or Ripple.

I still believe cryptocurrency is a good investment for the long run, however for the reasons I mentioned above and for the volatility of the market, I am not willing to put all of my money into it.

So if you don’t put all your money into cryptocurrency, what do you do with it? I’m personally not interested in stocks or bonds, because I think if there is a major currency collapse they will be the first to shoot down in value.

The other option is physical metals. Most people instantly think of Gold as a way to retain your purchasing power. While gold is historically a safe investment value wise, we also can look through history and see that when times are tough, government usually confiscate all the gold they can find. You may be able to store jewelry and other artifacts with gold content, but as for buying gold coins, bars, etc you can best believe they will know you have it and they will come for it.  Also in my opinion, gold isn’t the best investment unless you are actually storing a LOT of money. If your goal is to be able to spend your money on every day purchases in little bits, gold isn’t for you. Having a 1 oz gold coin is nice, but how are you going to buy a cup of coffee with that, or a few cans of beans during “the happening”?

Silver is the next thing that comes to mind. I personally think silver is way undervalued due to the fact that it is consumed at a high rate, and has a lot of usage in modern civilization. If you hold silver, you will most likely be safe from government confiscation (although I can’t promise that if you are buying off major exchanges online). There was a point in time where you could just search for pre-1964 quarters and dimes in circulation, but those have become increasingly difficult to find (In my case, almost impossible. I’ve never actually found one in circulation before). I’m not really big on buying bullion above spot price (even though the prices will likely be above that in the future anyway), but If you don’t have any silver at all it might be worth trying to buy a small amount at least, for the sake of diversification. The same principle applies to silver that does for gold and cryptocurrency though, if you buy silver you are in it for the long haul. You can’t go and buy things with silver at any store. Even if you managed to find or buy some 90% silver coins, as of now you’ll only be able to use them at face value unless you can find another buyer.

The next option which I think is way over looked and I personally store, is copper coins. Copper is another metal that will always have value due to it’s industrial uses. People have been using copper as money since the beginning of civilization, and I don’t see that changing anytime soon! My personal favorite part about storing copper is that you don’t have to buy it on an exchange, there is still an abundance of pre-1982 pennies in circulation, and nickels. Pennies dated 1981 or before are 95% copper, and actually worth DOUBLE their face value at the time of writing this! All nickels are worth only 89% of their face value, but that’s based off current copper/nickel prices. In a period of financial collapse or hyperinflation, I have no doubt in my mind that metal prices would rise enough to make them worth more than their face value.

The thing that really won me over in hoarding copper coins is that you can spend them without a major loss. Spending 95% copper pennies would be a shame, but in the case of nickels, it’s not really a big deal right now if you spend them since their face value is worth more than their current metal value. After a lot of thoughts and consideration, I find that this is the most practical way for a normal person with a modest savings to store their wealth. There is really no risk to it. Consider these scenarios;

– Business stays as usual and the USD keeps inflating at current rates. Your coins lose usable value over time due to USD inflation, but their metal content remains the same. At any time you are in a pinch and you need cash now, you can spend them at any store that accepts USD. Also over time, the coins become vintage and begin to gain collectors value.

– There is a financial collapse and the USD plunges into hyperinflation. The face value of your coins is basically worthless, but they still retain 89% of their value due to the metal content.

You see, copper hoarding is the best of both worlds in my opinion. You get to keep your USD as USD so that you can spend it at face value, but you are also protected in the case of a collapse. Now there are some downsides to this such as the amount of time it takes to sort through pennies and nickels to actually acquire a decent amount of copper. However if you have more time than you do money, and you are worried about protecting what you have and maybe even ending up on top when/if the dollar collapses, then I think hoarding copper is the way to go.

If you want to check current value of coins yourself, go here or here.