People are becoming increasingly concerned about the safety of their money.
Why? Because almost all of their money is held by banks and investment houses.
And distrust of these financial institutions is at a higher level than ever before. For good reasons.
Trust a bank? I don’t think so! I don’t even trust the company that holds my retirement savings. I find myself constantly crossing my fingers and hoping they don’t steal my money.
For now, I find myself sticking with the status quo. I still use a traditional bank. I still use an investment company for my savings.
But I like to stay ready.
I know that we’re all sailing very close to the edge.
Things are OK right now… but it wouldn’t take much of a nudge for things to be not OK at all.
That’s why I already have a little over 10% of my savings in gold coins. And why I plan on increasing that percentage.
That’s also why I’m going to start buying some Bitcoins. Bitcoins, as I’m sure you know, are a cryptocurrency. Your “coins” are stored in wallets online. And due to the distributed nature of the network, they are relatively secure.
The thing about both gold bullion and Bitcoins is that they lie outside of the traditional banking system. They are not on any bank’s ledger. And compared to your money in the bank, both are a lot harder for the government to steal.
So… which is the safer option? Bitcoin or gold?
There is no simple answer, and I think both have their place.
Bitcoin is #1 when it comes to paying for stuff.
Bitcoin is a lot safer than holding your money as cash in the bank. Its also a lot more flexible and useful than gold when it comes to making payments.
Imagine a day when things are a lot worse than they are today. The traditional financial system is in tatters. You can’t even access your bank accounts. Martial law is in place and travel has become dangerous.
If bank transfers no longer work… how do you get money to a relative in another part of the country? Mail them a gold coin? Not a great idea.
But if the web or cell phone systems are still running, you can access your Bitcoin wallet and send Bitcoins or fractions of Bitcoins to anyone in the world who can get online.
No banks required. No government permission required.
Of course, if the Internet is down and there’s no cell service, you’re screwed. Because Bitcoin and other cryptocurrencies existing online only.
Gold is #1 for security.
While gold coins and bars may not be the most flexible when it comes to sending money, or even spending small amounts of money, it remains absolutely the most secure form of wealth.
Gold has ALWAYS been valuable.
And it’s REAL. You can hold it in your hand.
With or without the banks. With or without the internet.
When things get really bad, you’ll always be able to rely on gold.
That’s why I continue to encourage friends and family to build up their holdings of physical gold.
And to address the point about using gold to pay for stuff, consider buying some of your gold in the form of fractional gold coins.
In other words, don’t just buy gold bars or even just one-ounce gold coins. Buy some smaller gold coins too.
And yes, to add an extra layer of security for yourself and your family, consider buying a few Bitcoins too.
Further reading:
6 Good reasons to own gold coins or gold bars.
Storing gold – at home, in a safety deposit box, or with your dealer.