Loading ...With all the turmoil and all the uncertainties in the world and in the markets–all the markets–what would you do with a sizable chunk of cash that you had no immediate need for, but would expect to have need for eventually? PM’s and PM stocks aside, what would be your other choices? Would you invest in any other sector? Would you buy other hard assets? Would you buy T-bills or other government debt? CD’s? A simple savings account? Just stash it somewhere? Safety is paramount in this situation; you want the money to be there when you need it and are less concerned with interest or growth.
I discovered recently that money you put in the bank becomes a bank asset; you cede control of it to the bank. Essentially, you have an IOU that they’ll give it back when you want it. If they’ve got it. Banks fail. Another thing I discovered is that the FDIC insurance fund is a minuscule percentage of the total amount of deposits; it would fail quickly in a major bank run. I suppose the government would step in and do something quickly to create liquidity, and they’d probably just print more money to cover FDIC’s failure. But what would those dollars be worth? Maybe they’d revalue. New dollars; turn in your old ones. Seems there is nothing truly safe. What would you do with cash now?