cash or gold for the mason jar savings plan?

[djcorrell]

Ok so a legit question.
You have a bunch of cash doing nothing would you be better off trading it in for gold pieces of just keep the cash?

You will always need some cash on hand. There are many natural disaster or personal emergencies that can be made better with cash.
If you feel you have too much cash doing nothing, precious metals are a great hedge, so are guns.
Kinda like guns, people say you can only shoot one...or one at a time. Should have bought more in the 80's. (think high end)
Precious metals are a great hedge against inflation, deflation, or a recession (Bear) market.
Large amounts of cash held long term will always decrease in value because of these forces.

With that in mind, consider this.
You can not buy large quantities of "collector" coins off the TV and sell them to the local coin shop (when you need the money) and expect to have any kind of decent return.
If you buy bullion at highly competitive prices and have a place to sell them the same way (when you need the money) it is better than cash.
There is always market risk involved with anything besides cash; however if the plan is to hedge for the reasons stated above, silver and gold are great placeholders.
If you don't like volatility risk, trade it in paper and hedge with options, however when the computer is broken it's hard to get back in to cash.

As far as gold vs silver, the ratio is EXTREMELY high right now. Silver looks to be a better buy. Never put all your "Eggs in one basket". So a good mix of immediate cash on hand, gold and silver, should allow you to weather almost any storm. However, if you need to store a large amount of cash in the smallest package, gold wins hands down.

Gold 1oz bullion coins (or bars) will have the smallest premium for money invested (spread). However fractional gold is a great option too, if it is the right form. Many of the small gold coins simply have extreme premiums, the lowest right now are British Sovereigns. They are better than buying "junk" gold coins, while retaining a low premium.

Simply put, you want to be able to store monetary amounts, in an inflation hedge, that is easily liquidated with the lowest cost. GOLD WINS!

Hope that helps, I'm done with the lesson for today.
.02

 

[Sanford]

Best investment for SHTF? TP ... as long as you've got somewhere safe to store it in bulk.

 

[djcorrell]

SHTF=food.
I did not think that was the question.

 

[okietool]

At least cash makes a decent fire.
I say brass and lead or food.

Personally, I go for divedend oriented stocks.

But I'm stocked up on brass and lead.

 

[John6185]

Watch the stock market, when it nosedives gold goes up. Some say we are headed for a market crash and gold could easily go to $4,000 per ounce or more dependent upon whom one listens. If the economy tanks, someone will still have money and they will want gold and will pay a premium for the metal in my opinion. I have collected gold since 2006 and earlier but I do not tell family members, friends or neighbors that I have any stock. It just isn't worth it-someone would want their share-even if they didn't earn the gold.
I believe from what I've heard and read that with the national debt nearing 20 trillion dollars that the price of gold may be adjusted to compensate for the failing dollar and that is the reason gold will go up in value-probably a false value but nonetheless will be worth more.

 

[Jwryan84]

At least cash makes a decent fire.
I say brass and lead or food.

Personally, I go for divedend oriented stocks.

But I'm stocked up on brass and lead.

This, gold and silver is a sham, Won't be worth anything if SHTF. Go talk to a financial advisor and open a Roth IRA.

 

[dennishoddy]

This, gold and silver is a sham, Won't be worth anything if SHTF. Go talk to a financial advisor and open a Roth IRA.

The little silver I have inherited will likely go into hollow points as a filler to take out zombies or something. When SHTF, the gold and silver dealers will be nowhere to be found.

 

[ratski]

Going back to your original question, it depends on what you are planning for.

Plain Jane investing or SHTF or TEOTWAWKI?

Personally I would want some of all available, especially for a SHTF event.
By that I'm talking about a Katrina episode, Moore tornado, earthquake, major ice storm, etc.
Why?
In these situations, cash is KING.
You won't be able to walk into the local Walmart with a 1 ounce gold coin and buy what you need.
Nor will Lowes, Home Depot or Country Mart take it.
They WILL take cash.
They may not take checks, credit cards or debit cards.
I was in line once at Walmart as the ice storm was hitting and the power went down. Phone lines went down also.
They took cash and some (not all) checks. And no EBT cards.
They could not take Credit Cards or Debit Cards. A lot of "Millennials" were AMAZED that they couldn't use their plastic.

The local gas station WILL take cash, but if the power is out or lines are down, they won't take CC, Checks or EBTs.

Had a truck load of "tree trimmers" zipping thru the neighborhoods offering "estimates".
My "estimate for insurance" was 2 grand and I'd have to wait a week.
How much for Cash?
$700
Nah, can't do that. I'll give you 400 and you guys do it now.
No, I can't do that.
Well, I see a truck load of hungry workers out there. 400 cash will pay them and get some food for everyone.
OK. 400.

Everything has value to someone. Look at the idiots grabbing big screen TVs and dragging them thru the flood waters of New Orleans.

As time goes on in a SHTF event, (unless the government steps in) cash will work, but some folks will be bartering.
I think this is where the hard metals will come into play.
Someone trying to "Di di" the area might be willing to part with some of their "stuff" for compact assets to use later on.
It is easier to transport an oz of gold than it is a living room furniture set.

Will gold or silver be viable in a TEOTWAWKI event?
Probably.
Some may not value it, but someone will.
Just like tobacco. I may not smoke, but a carton of smokes is worth quite a bit to someone who "needs" them.
When I was in Korea (a long time ago) and went traveling around the country I always carried at least a carton of American Smokes with me.
Amazing what a pack of cigarettes did that greenbacks couldn't.

Dave

 

[swampratt]

So true Dave.
I have got many things way way cheaper when I pull out the cash.
I almost always use cash to purchase things.
If the SHTF really happened all that is going to work is a good accurate shooter and gun.
I will kill you to get your stash if you do not kill me first.. Either way my problem is solved.

 

[Sanford]

Best investment for SHTF? TP ... as long as you've got somewhere safe to store it in bulk.

SHTF=food.
I did not think that was the question.

It wasn't, exactly. But you can do the mason jar savings plan with TP. You just use each roll down to the point it will fit through the lid ... better if you're using "wide mouth" jars.