During times of economic abundance, and social calm and cohesion, there are a vast variety of options when it comes to storing value. Even though it is good to have cash, the value which it holds is fully reliant on the stability of the economy and society. But, what happens if the economy collapses and/or the social fabric starts to unravel? The fiat currency will not be worth the paper on which it is printed.
The highest levels of hyper inflationary periods in history
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What is Store of Value?
A store of value refers to a tangible object (not fiat currency) which can be purchased with fiat currency and stored, traded, or sold at a later date to extract the ‘stored’ value of the currency which was used at the time of purchase. A store of value is generally something which will either hold its (or gain in) value over time.
The Most Reliable Stores of Value Are
It is worth noting that there are a larger list of options when it comes to alternative stores of value. However, this particular list concentrates on stores which would maintain their validity as a means of trade even in a post-monetary society (or what may be left of it). This list is ordered by the value each commodity has independent of any type of fiat currency, or society that requires currency for trade.
- Agricultural Land: Good arable land can be utilized to grow food (if one is so capable) and trade excess production for other goods. It can also be traded. In a society (world) that has no need for money, or where fiat currency has no value, the ability to produce food will be of utmost importance.
- Guns & Ammo: Similar to agricultural land guns, and ammo present a highly valuable asset in a world where fiat currency is meaningless. Being armed means not only safety but having the ability to procure food through hunting—even though hunting can be accomplished through other means, firearms make it much easier and effective.
- Practical Skills: Possibly the most important thing someone can do to be well prepared for a post-metropolitan world, would be to acquire as many practical skills as possible. The skills would include farming, carpentry, cooking, hunting, masonry, basic metallurgy (i.e. blacksmithing), weaving, animal husbandry, knowledge of home and folk remedies, and other such skills. The value of having practical skills is that they are always at hand, and can be utilized to create value in order to acquire other commodities through the exchange of work for goods (or other services).
- Rare Coins, Luxury Watches, Art: Collectibles are in general good stores of value, but coins, watches and art have proved to be particularly good options. It is important to note that not any piece of art or luxury watch will do the job; study the market before selecting any such items as a store of value. These are generally options for the wealthy who have the proper knowledge and connections to buy, sell, and trade without getting gouged by a pawnshop. Still, these items can be good alternatives to traditional ways of storing value, if an investor is familiar with the market in which these types of items trade.
- Diamonds: Diamonds can be a great alternative to precious metals, simply due to the fact that they are not only used in making jewelry, but they are also of practical utility. Someone with a pile of titanium, or gold may have a tough time finding a customer, but a small bag of loose diamonds is not only a safer store, but easier to hide and transport.
As with any advice related to money, always consult a professional before making any decisions. The only store of value that carries virtually no risk is the learning of practical skills—it only requires your time, and a willingness to learn.