For context, this post originally appeared here:
http://www.askaboutmoney.com/showthread.php?t=163133
Like many people, I've thought through various options on how to protect my deposits against collapse. I want my money to be able to withstand a financial catastrophe, such as the break up of the Euro.
I could convert it into another currency, but which one is 'safe', and which one will be the next to crumble after the Euro has gone? I don't know. Gold, silver etc, is another option, but I fear that I'm too late to the party with that. The smart money got there long before me and I may now be buying into a bubble.
It seems to me that traditional methods of preserving wealth may not solid as they once were, as we enter new territory. I don't know enough about various financial instruments and vehicles (as I'm neither a financial musician or mechanic) to invest in them. I believe they are all fundamentally flawed anyway as they are still based on an underlying currency.
So what's left? Well what did we do throughout the ages, before fiat currencies, before the gold standard etc? We bartered. Wealth was stored as goods and commodities.
Money is meant to be a store of wealth. A promise to pay the bearer. Well these promises look like they are going to be broken, so I'm bailing out. I'm calling in the promise and releasing my store of wealth. I know I'm going to get value for money because I know what the value of my money is, right now.
I'm not just spending my money on useless tat, but on other items that have value. Somewhere else to store my wealth. So I'm spending my money.
What better way to spread risk as well. It also harder for the government to take away my antiques, groceries or artwork.
Items to consider:
- Antiques
- Long life food (things could get
really bad
- Artwork
- Good quality clothing
- house improvements
- upgrading security systems
- old age items
- conveniences (upgrade or replace broken household appliances, robot vacuum cleaners)
- 'Apocalypse' items