Is Cash Trash?
Cash feels safe because the number on the bill doesn't change. But what that bill can buy changes every day. Gold is the antidote to the silent theft of inflation.
Cash (Fiat Currency)
- ProsUltimate liquidity. Accepted everywhere instantly. No transaction fees.
- ConsGuaranteed to lose value over time due to inflation. Subject to unlimited printing by central banks.
- RoleShort-term spending and emergency reserves (3-6 months of expenses).
Gold
- ProsMaintains purchasing power over centuries. Cannot be printed. Intrinsic value.
- ConsLess liquid than cash. Transaction costs (premiums). Volatile in the short term.
- RoleLong-term savings and wealth preservation.
The Strategy
Don't go "all in" on either. Keep enough Cash for your immediate needs and emergencies. Move your long-term savings into Gold to protect it from the inevitable erosion of the dollar.