Americans are Hoarding Money

Actually, it is a big problem now days where to put that extra cash one is saving or, as some would say, 'hoarding.'

Checking and Savings account percentage suck...and suck big time, certainly not worth leaving it in there but if you do ask bank about a money market or CD instead.

I suppose if you are brave then you can still try the stock market but at (currently) 24,739 - well - I think that's in la-la land and I want no part of it. I am out of the market except for a couple of losers which I might as well hold and see what happens in the years to come.

Gold is still a bit high and with the market so high and the economy doing well (but who can believe anymore?) it is a bit interesting Gold continues to hold around $1300 which I suppose tells us that even though things are getting better people are still worried.

CDs are about the only relatively safe game in town as long as economy don't collapse and pay a bit better than Checking or Savings accounts, around 1.8% last time I looked if you go through your broker. The Bank's CDs are usually pay less than Broker.

Honestly, there is no good place for extra cash so I tell people to pay off all their bills first and foremost then stick a few thousand in bills away in a dark corner then purchase some 1 year CDs (no longer) then look to gold/silver coins and if the gold price drops jump on them. What else can you do?

 

When I was ten years old, back in 1956 my mom took me to the bank to open my first savings account. I got 4% on a passbook account. 4% would look pretty good now.

 

Didn't say it was with out risk. I have made a lot of money off paying the PM market. I probably made nearly a new economy cars worth in 10 years, out of $800 to $1,000 i started with. Not bad considering I started when I was almost broke, the first 5 years I didn't really know what I was doing, wasn't watching the market closely at all.
You do know you need to be prepared for nothing to happen to right?
I hate to think what I would have spent that original 1000 on 10 years ago.

Gold is still too high to buy.
I believe the 4 to 5 year trend is going to be slightly higher. But not high enough to really make gold even a mediocre investment.
If you buy gold now expect at least 4 years before you even get the chance to break even just from the bid/ask difference.

I'm only buying PM when I see the opportunity to make up the bid/ask difference in 18 months or less. I would prefer 4 to 12 months.

 

I am a hoarder and proud! I really dislike that they are using the term hoard because some of you are correct, they are trying to make me feel guilty for keeping my cash. When did having a bit set aside become a bad thing? Nest egg, egg money or whatever you call it, if you are one of those people that sets $20 aside each week in a jar, there is an issue. You cannot put that cash into the bank in a lump sum because large cash deposits are a flag for the IRS. So by hoarding bills in a jar could earn you an audit.

This seems really low to me. I think the last financial crisis was the tipping point for people living on credit, It got overwhelming and they filed bankruptcy.

Last year Colorado was a hot Real Estate market. Inflated housing prices, people getting into bidding wars. Costs of homes were in the range like San Fransisco, Hawaii and NY. I just had a realtor tell me things are kind of stagnant in the market. House are still selling but it isn't as crazy.

Having said all that above, I think things will get real volatile and we are headed fora crash. People need to start hoarding more cash.

 

A large amount of 'cash' in a bank account is no more than an electronic shadow of a stack of inked paper.

Toilet paper is also paper, but is actually useful - unlike the 'money' in use today. The paper is only worth something as long as people/merchants are actually willing to take it. Otherwise, toilet paper more 'value'.

 

Correct but there are some merchants that will be slow to catch on to the dollar having no value if it ever did become worthless.

 

I use one credit card, and keep it paid up so to minimise interest payment.
My savings are in a money market account, which does allow writing a few checks a month, if necessary.
I also keep some cash at home for emergencies.
I DO NOT hoard, I save. As I was taught by my late parents. Works for me.
Two properties - paid for.
Three vehicles - paid for.
CC debt - none.
I don't plan to change.

 

I pay off the CC's every month and use the bank account for bills each month. Additional money is kept at home and if the signs of SHTF start happening the cash at home will get spent on extra supplies right away. If I'm right, good for me, and if wrong I still have something for it.

 

As Puerto Rico showed us after the hurricane hit everyone said "cash is king".
Which is the title of a post in this forum.
Things didn't devolve into a bartertown scenario as a lot of people thought it would.

 

You are correct. And, what else is a person suppose to do? Should I purchase 40 foot containers of toilet paper? Honestly, I fear an economic collapse more than any other scenario and feel certain it will happen some day; however, there is only so much one can do. One must hope that if in a collapse the leaders and elites we strive to preserve the country and the currency even for no other reason than their own self-interest. For example, Germany after the WW1 when it took a wheelbarrow full of marks to purchase a loaf of bread, it was something like 4,000,000 to the dollar - yet - it came back.

 

How are you going to buy a loaf of bread with a bar of gold?
My solution, fractional silver I occasionally buy from my local gold and coin shop.

 

The danger of paper money, where a 'government' owns the printing press....





no wheelbarrow needed....

 

Germans resolved their economic woes but got Hitler as part of the deal..

We got FDR..

 

What? Money at home.... that makes you a hoarder +++.

Wanted for hoarding his money:

 

Hoarding can only be where there is a limited supply and one is denying it to others selfishly.
Government prints up money like there's no tomorrow , may be there is .
Fact of the matter is saving money is always wise prudent , however with the world is now beginning to choose other currencies which make the US dollar at risk altogether .Our relationship with Iran is over the oil and US dollar mandate .
That being said , I invest in things I know I will need no matter what happens to the dollar.
Gas, food, water, shelter, transportation, security, tools, consumables, building supplies, and so forth.
Fact, the dollar will continue to loose value due to inflation .
Daily needs will also begin to cost more or become no longer available .
I'm not stupid I see what happened in south America and the other third world countries.
Trump has a promising future and I hope America can become great again, but I also realize that the democrats are not beyond murder ,and the tide can change at any moment .
While I have a little cash on the side and some in checking for paying bills ,more of my investment is in things I know I will need in the future, regardless of what happens.
Money is nice only IF others are accepting it as value.
If it comes to barter how far can you go making your way when there is no money and you've set nothing aside for barter , goods or services ?
And just like selling any thing it is only worth what your willing to sacrifice for it, be it gold or water .

 

We are all stuck although you can open an account overseas It might be hard to do transfers and no telling just how much value it will retain if US dollars go down,

The public is not too sophisticated most can't tell real silver or gold and content is unknown in some instances not all old coinage is 90% silver China is producing fake metals unless your a numismatist a lot of vales will elude you like a 1943 copper S penny first there were no "s" series coins minted and this date is one of the most counterfeited coins there are less than 50 all the rest of that date are steel. but what will a rare coins value be if the basic currency is worthless ?

Gold has been minted in so many contents like the Chinese panda was I think 8K up to Krugerrand's were 91.67% and mint rounds and ingots mostly have their content marked my best guess is if you don't have a book a test kit a scale and micrometers you could get skinned alive so dealing in metals is risky although copper tube and sheet brass and lead nickel tin solder bar zinc I know nails and screws and bolts and lags will have a value as well as any caliber of ammo if you can find an interested person to trade with. All of this is a mental exercise there is no pat answer if the grid is down long drywall screws are unusable or if people do not have a screw gun or a drill hand tools again depending on type and need. knives are always good folding and fixed blade.

He I only got 35 out of 50 on that test thingy but I think I looked into this enough to figure it's anyone's guess but I'll bet on beans and bullets and home made alcohol.

 

I'm not.

But I'll buy a couple rail cars of wheat and a bakery......then ya'll can bring me your class rings, wedding bands, old silver coins and such, or whatever else I'll trade a loaf for.

 

Well, a 40' container might be a bit over the top (not judging BTW), but I have a dozen of these put away....144 rolls to the plastic lined, plastic wrapped, plywood box:

 

A most excellent idea. I still have TP stored from before Y2K, but the Charmin rolls are the most economical I've found. Beats the single ply that I always think of as Forest Service paper. Never seems to run out, but you need yards of it to do what a few squares of Charmin can.

Gives whole new meaning to "paper money."

 

LOL! Well, I admit defeat because you certainly got me beat. I have ~80 rolls...just told the Logistics Chief to pick up another case but she refused, said I could use newspaper if it came to that...She can be so damn economically minded at times but I think she might be saving it for herself. LOL!