4 votes

Question: Are T-Bills Safer Than Cash?

It's pretty clear that, if a poll were taken, physical silver would rate right up there as a store of value to weather the coming crash among this savvy crowd. But that takes a little research and know-how. Question: are T-bills still better than cash? You can just buy them at the teller's window practically, I think.

Also, how does one buy "physical silver," looking ahead. What's the skinny, other than reading a long book about it? I'm looking out for friends who have life savings in bank accounts. Thanks!




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deacon's picture

don't T-bills

go up and down with the value of the dollar?
if they do,then wouldn't they be worth less
as time went on,and the value of the dollar drops?
deacon

setting your expectations to high,can cause depressiuon

Next question, I know physical silver is tops here but I want to

obtain opinion on all options. Someone said opening an account in Swiss francs at a Swiss bank is safer than dollar savings. Also buying gold which will be held in Swiss banks. Is there a little more margin of safety in this than dollar savings? I think I know the answer but I am getting quite an education here.

A man who views the world the same at fifty as he did at twenty has wasted thirty years of his life.
-- Muhammad Ali

By silver or gold partial ounces. Stock your pantry and your...

arsenal. Lead is going to become a very "precious metal".

Bills, t-bills, t-notes

bank accounts?

How about t-shirts? They will have some value in any event.

South is the new way up! Major trend for 2014: Latin America. Start checking out South American investment, it's part of our future now.

in short...

NO!

They are about the closest equivalent. That being said, they are still a promise to pay. Current actual cash in circulation is estimated to be at about $700 billion worldwide, while current bank deposits (IOU's from the bank to pay out) are estimated at $7 Trillion globally in USD's.

See a problem there?

Hold cash. not in the bank. in some place you have actual notes. Once everyone starts demanding payment because they are scared of default, cash spikes in value because fractional reserve banking causes mass shortages of it (and since banking is electronic, expect major bank "holidays" where you can't access your deposits) once the bust follows the credit expansion.

Physical cash. Gold and silver are great, too, but I would also go out right now and buy up as many rolls of nickels (still made of nickel until next year, subsidizing your legal tender at $0.05 for about $0.06 of nickel), and dimes and quarters. Small bills. If cash is scarce you can bet that exact change will be much appreciated (and you might not be able to get change back!). Gold and silver are probably going to get slammed one more good time while everyone is rushing back to cash, meaning silver should see $20 or less (my long-term buying point), and gold WELL below $1500.

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Progress is precisely that which the rules and regulations did not foresee. - Ludwig Von Mises.

Nickles?

I agree with the fact that we should NOT buy anything in paper, but why buy a substandard material like nickle?

Trade your fiat for real money, even with a premium, such as physical silver or gold. Junk silver or gold is the best bet as the premiums are generally lower and provide a protection against confiscation as it is a genuine US minted coin. Pre 1933 is best.

Will some banks be better thatn others if your cash is there?

For example, small, local banks?

A man who views the world the same at fifty as he did at twenty has wasted thirty years of his life.
-- Muhammad Ali

I can;t answer

but something real in your hand seems better then a printed picture.

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ok, sitting in a coffee shop someone just told me to buy Yuans

...if the dollar is going to crash than the currency it is going to crash relative to is the Yuan (Chinese.) It's still paper but the finances behind it are stronger. Is the guy who was sitting next to me a nut?

Come to think of it, isn't a money market fund safer than cash, because a market basket of currencies would hedge weaker ones with stronger ones?

A man who views the world the same at fifty as he did at twenty has wasted thirty years of his life.
-- Muhammad Ali

A money market is

still an IOU from one bank to another. What happens when interbank lending rates spike like they did in 2008 and the market just grinds to a halt. Money markets get siezed up and nobody can move anything (you can't get your cash).

I'm all for gold and silver, or other means of payment of debts that you owe, but you then have to watch out for people "double-dipping" and using the legal tender monopoly to say "hey, he didn't pay me back!"

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Progress is precisely that which the rules and regulations did not foresee. - Ludwig Von Mises.

Life savings in bank accounts?

You certainly have your work cut out for you my friend.

And you intend to do it without reading books?

Pouring it into a wishing well remains and option.

South is the new way up! Major trend for 2014: Latin America. Start checking out South American investment, it's part of our future now.

I have never read a book on currency but I understand paper

is potentially worthless just by hearing a few lectures and listening to Peter Schiff, Ron Paul, and other very smart people. I guess it comes down to working out a good system for hiding and defending your liquid assets, if bank safe deposit boxes are not safe. Floorboards, walls that sort of thing. Any references to this art appreciates.

I understand implicitly the value of guns and ammo, but you're not always home. I could rig a pretty good booby trap with a mousetrap and a shotgun shell.

A man who views the world the same at fifty as he did at twenty has wasted thirty years of his life.
-- Muhammad Ali

fireant's picture

No.

T-Bills require a third party to cash in. You carry the risk of not being able to make the transaction when you want (or need) to. You also carry the risk of being caught in the bond bubble busting. It will; when is the only question, but bond holders will get creamed when it does.
Cash gives you the flexibillity to move it into something else quick if you need to, plus, if deflation overwhelms the central banks, cash will be king for a period of time. The risk is getting caught in an overnight re-valuation (ahem, de-valuation), which is what I expect will occur at some point. That wouldn't be fun for T-Bills either, so cash would be all around safer.

Undo what Wilson did

Physical

As our dear departed Bob Chapman drilled into our heads, "If it's written on paper that's all it's worth."

Find a local metals dealer, depending on the dealer, you pay a premium for each ounce of metal you buy. Although premiums above and beyond the spot price of the metals differ from dealer to dealer and the quality of the pieces you buy, expect anywhere between 5-10% over the spot price. Many dealers will give a break in premium if purchased in larger quantities or if you haggle.

Get rid of the paper.

Thank you so much. Now say I have, like 20 grand in

physical silver, do I just keep it buried in the basement? Or is a safe deposit box okay?

A man who views the world the same at fifty as he did at twenty has wasted thirty years of his life.
-- Muhammad Ali

NO! Anywhere but the bank.

NO! Anywhere but the bank. That goes for safety deposit boxes too. When the bank goes on "holiday", they'll be looting your "safe" box.