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It makes sense to have an emergency fund of around 3-6 months of expenses. Since it's something that you'll only ever tap into in an emergency, is gold a good option for this? In the near future I'd like to start buying slabbed St Gaudens or other coins I've always wanted to own (preferably in the $1k-2k range each) and have them double as my emergency fund. It has more eye appeal than looking at a bank statement every month.

Has anyone ever compared the rise/fall of gold vs a high yield savings acct (2.5% or so), which is where most people keep their fund?

I’d prefer silver unless I was an ultra high net worth individual (say $20 million or more in net worth).

Here’s why: Let’s say you need a handyman type to fix air conditioning, plumbing or electrical. Let’s say the bill is $200-300. When it comes time to pay and all you have is a 1 oz. gold coin, what do you do if they can’t make change? I’d rather give them silver American Eagles or 90% junk silver and be done with it. Also, if you give gold, they are more likely to think you are rich and you could end up being a target for theft later.

For someone who is very wealthy and doesn’t disguise it well (you know- a 10,000 sqft. home overlooking the city with a Rolls Royce and Bugatti parked out front), it may not make any difference. You could pay them in COPPER and they’d know you are still filthy rich! Being discreet is very important IMHO.

Another disadvantage to gold is that there is a lot of counterfeit gold out there, even slabbed items. At some point, some might become aware of this and prefer something else in trade instead.

An unexpected bill of $200-$300 isn't that difficult to fit into the budget. I'm talking if I suddenly need $2k in car repairs or something. You'd need a lot of silver for that amount. And I'm not expecting to use the gold itself as payment. I could simply offer it for sale here or go to my LCS for some quick $$$. Storing it is easy enough in a bank SDB.

Ultra-rich people like you describe have many other ways to cover emergency bills. For Joe Middle Class like me, this was just an intriguing option that crossed my mind and I was curious of the viability.

I am doing it... a little at a time. buying 1/10th and 1/4 OZ bullion coins. Dave Ramsey says to have an emergency fund.... might as well be in gold. If you have a $500 unanticipated debt, you can liquidate a few 1/10th OZ AGEs fairly quickly

AdamsSamoa wrote:I am doing it... a little at a time. buying 1/10th and 1/4 OZ bullion coins. Dave Ramsey says to have an emergency fund.... might as well be in gold. If you have a $500 unanticipated debt, you can liquidate a few 1/10th OZ AGEs fairly quickly

And when times are good, replenish.

Exactly what I was driving at, thank you.

Gold is an excellent plan. I think it matches with his forum as well, balanced is best. A little in gold, a little in silver, and a little in copper.

Liquidating might be a little more time-consuming, but it will hold the wealth much better.

Right now, I think silver is the best buy over gold. I'm still thinking the copper, and even nickel, fundamentals remain valid.

Having said that, I see a lot of people having a hard time selling anything.

Safe deposit boxes is a whole different subject, but if there is a SHTF situation, banks might declare a "holiday". You might not be able to access your safe deposit box because the bank branch itself could be closed. Remember the Cypress situation a few years ago? That was a mess. I agree with the idea of storing valuables offsite, but there are places other than banks that can be used. I would think that a bank would be shut down before, say, a U-Haul storage facility. Also, the storage locker facility is likely to have longer hours and be open on Sunday. Furthermore, it is easier to get in and out of a storage locker in a discreet manner than it would be at a bank where you could have to wait in a long line.

For those that use ATM's, the machines typically might have perhaps a few thousand in cash and can run out in a hurry.

As far as an expense of $2k goes, a 100 oz. silver bar could be another possibility, yet I agree that a 1 oz. gold coin would likely be easier to sell both on this site and to a coin dealer.

In 2011 I needed to get a new roof and got quotes from several contractors. One of them quoted me $14k and said he'd prefer to be paid in silver. That was actually near the peak of the market. Perhaps I should have taken him up on it...

If you do not think you will keep & hold any PM purchase for at least 5 years (10 years is better), do not buy, keep the cash instead.

PMs are a Long Term play. If something expensive fails and you must cash out Ag at $14, when you paid $17, your emergency just got 20% more expensive.

Silver is better and more liquid. 90% dimes and quarters. Ag bars are too large. Make sure you have 90% coins on hand, even when the price goes above $50oz, do not sell it, you will most likely need it for barter or other transactions.

For me, large silver bars and gold coins are more of a wealth preservation instrument.

IdahoCopper wrote:If you do not think you will keep & hold any PM purchase for at least 5 years (10 years is better), do not buy, keep the cash instead.

PMs are a Long Term play. If something expensive fails and you must cash out Ag at $14, when you paid $17, your emergency just got 20% more expensive.

Good advice

IdahoCopper wrote:If you do not think you will keep & hold any PM purchase for at least 5 years (10 years is better), do not buy, keep the cash instead.

PMs are a Long Term play. If something expensive fails and you must cash out Ag at $14, when you paid $17, your emergency just got 20% more expensive.

Thank you for that. I generally speak to the long term view, or at least until the upheaval in the current monetary system. I may not have made that sufficiently clear.

Ideally you'd like a collection of emergency funds of different types. Plain cash to some level - in your own hands - should be primary, especially in terms of a personal short-term emergency that isn't widespread in a community, region, nation, or more.

We've talked many times about prepping in general so no need to cover that topic here, it's been discussed many times; there are many other layers of emergency prep besides money or money-like instruments, so review those threads if that isn't already familiar to you.

Back to money, outside of cash both gold and silver each play their own role, as noted by others. If you think you need to escape your area for a long period of time, even to another country, as so many have experience first-hand in the past (such as escape from an totalitarian regime), nothing would beat gold in its ability to transport wealth, supported by silver (more easily used in daily commerce, as noted) to the extent you can stand the weight to carry it, and cash as makes sense.

68Camaro wrote: If you think you need to escape your area for a long period of time, even to another country, as so many have experience first-hand in the past (such as escape from an totalitarian regime), nothing would beat gold in its ability to transport wealth, supported by silver (more easily used in daily commerce, as noted) to the extent you can stand the weight to carry it, and cash as makes sense.

Wouldn't it be difficult to transport gold across the border or to even go through customs with it?

Those fleeing for their lives won't worry about a few nicities, and a few gold coins are easy to hide.

coindood wrote:It makes sense to have an emergency fund of around 3-6 months of expenses. Since it's something that you'll only ever tap into in an emergency, is gold a good option for this? In the near future I'd like to start buying slabbed St Gaudens or other coins I've always wanted to own (preferably in the $1k-2k range each) and have them double as my emergency fund. It has more eye appeal than looking at a bank statement every month.

Has anyone ever compared the rise/fall of gold vs a high yield savings acct (2.5% or so), which is where most people keep their fund?

I believe studies showed that over time that if you left your investment parked for a specific time period, that the returns between the groups was about the same. It came down to market timing.
Numismatics are tough. If you buy into the upside of the market and are forced to. sell you could lose on both sides.
For me owning 1/10 ounces of gold coins is easier. Dollar cost average in and build up a few ounces. To get more bang consider gold jewelry, pre owned gold rings pack a lot of value. Great for collateral and easy to convert to cash.i myself would not buy them nor suggest them as an investment if you need liquidity.fast .

68Camaro wrote:Those fleeing for their lives won't worry about a few nicities, and a few gold coins are easy to hide.

Airport scanners easily show PMs. The machines look for density and PMs are dense. A big red square on the operator's screen, outlines the detected object.

Its almost as if the scanning system was designed to unveil hidden gold, trying to get past the checkpoint. Why am I not surprised?

Thanks IdahoCopper. I was kinda thinking along the same lines, but didn’t have any recent experience to back it up.

Recyclersteve wrote:Thanks IdahoCopper. I was kinda thinking along the same lines, but didn’t have any recent experience to back it up.

I once flew to Tennessee to buy a car. I'd made the deal to pay for it in 90% Kennedys. When I was going through security to board, I could look over the shoulder of the scanner operator and could easily see my scanned bag. The Crown Royal velvet bag full of silver, inside my carry-on bag was highlighted with a red square outline. I was pulled over to secondary inspection. The officer poured out the silver, put it back, and I was good to go.

Its like we all are being mentally inoculated to accept an ever increasing level of Police State scrutiny. So we all will blindly accept each new indignity and assault on our rights with sanguine unanimity.

IdahoCopper wrote:

68Camaro wrote:Those fleeing for their lives won't worry about a few nicities, and a few gold coins are easy to hide.

Airport scanners easily show PMs. The machines look for density and PMs are dense. A big red square on the operator's screen, outlines the detected object.

Its almost as if the scanning system was designed to unveil hidden gold, trying to get past the checkpoint. Why am I not surprised?

I wasn't going to reply with the obvious, but I can't not... If you think they will confiscate (which in many phases of a crisis they wouldn't) just don't go through the scanner. I'll leave it as an exercise to the reader to figure out a variety of reasonable (even legal) ways to not have to take gold through a scanner. As you think of them just keep them to yourselves folks, no need to advertise this.

The operative phrases here are:

Be resourceful
Be respectful
Be responsible

Pretty basic stuff.

Cash is for emergency fund. In case of emergency, you don't want to have to sell low.

Gold is for wealth preservation, protection from financial catastrophe, and easy transport.

Silver is for bartering day to day costs, and a high risk, high reward longterm investment.

BitCoin is for temporary holding while crossing borders either with intent of not returning or at least not bringing back home whatever you turn the BTC into.

InfleXion wrote:Cash is for emergency fund. In case of emergency, you don't want to have to sell low.

Gold is for wealth preservation, protection from financial catastrophe, and easy transport.

Silver is for bartering day to day costs, and a high risk, high reward longterm investment.

BitCoin is for temporary holding while crossing borders either with intent of not returning or at least not bringing back home whatever you turn the BTC into.

Interesting perspective. This does, of course, make me think about diversity. If you have $5 million in cash but it isn’t in a fireproof location and that place burns down or is damaged by a hurricane or tornado, what do you do then?

Also, diversity doesn’t just mean different types of investments but different locations as well. If you had gold, silver and currency and a tsunami washed them all away or they were all destroyed by a gas explosion, what good was your diversity?

Recyclersteve wrote:

InfleXion wrote:Cash is for emergency fund. In case of emergency, you don't want to have to sell low.

Gold is for wealth preservation, protection from financial catastrophe, and easy transport.

Silver is for bartering day to day costs, and a high risk, high reward longterm investment.

BitCoin is for temporary holding while crossing borders either with intent of not returning or at least not bringing back home whatever you turn the BTC into.

Interesting perspective. This does, of course, make me think about diversity. If you have $5 million in cash but it isn’t in a fireproof location and that place burns down or is damaged by a hurricane or tornado, what do you do then?

Also, diversity doesn’t just mean different types of investments but different locations as well. If you had gold, silver and currency and a tsunami washed them all away or they were all destroyed by a gas explosion, what good was your diversity?

A good problem to have, not one most get to enjoy. As much as the too big to fail banks get a deservedly bad rap, they do serve a purpose in that case. Although credit unions are quite popular, they have stricter limits on ATM withdrawals. I like to use both of those to varying degrees, but not for anything metal related. I suppose that boils down to who you trust and where they are. I'm not sure I'd be comfortable burying gold in a foreign country or keeping a safe at a vacation home. There are always gold storage facilities which might make sense for a broader diversification plan.

InfleXion wrote: A good problem to have, not one most get to enjoy. As much as the too big to fail banks get a deservedly bad rap, they do serve a purpose in that case. Although credit unions are quite popular, they have stricter limits on ATM withdrawals. I like to use both of those to varying degrees, but not for anything metal related. I suppose that boils down to who you trust and where they are. I'm not sure I'd be comfortable burying gold in a foreign country or keeping a safe at a vacation home. There are always gold storage facilities which might make sense for a broader diversification plan.

I agree that this is a situation that most (like me) will likely never have to face. I guess my point was that some people feel like they have $5 million in cash and feel like they are set for the rest of their lives. Well, that depends on a number of things:

<How they manage their money
<Luck (they don't have any serious illness that isn't covered by insurance- or lawsuits they lose)
<Partly where they live ($5 million in Mississippi will buy a lot more than in California)
<Diversity (if that $5 million is largely in a single stock with a supposedly great future and it backfires, that is trouble)

I agree that burying gold in a foreign country or having a safe at a vacation home would both be concerns. On the other hand, if I had a large plot of land in rural Canada (or another friendly country like perhaps New Zealand) and there was some place where I felt safe burying the gold, I would consider it.

Over time gold will more or less follow inflation, gold earns it's keep, always has. A readily available cash reserve is a must, also comes in handy for those dips in metal prices, then you can just replenish it again.