# It's time to hold physical cash, says UK senior fund manager



## Kauboy (May 12, 2014)

Taking a step outside of the normal advice fund managers usually give their clients, this chap is keeping it real and advising others to keep physical cash on hand for what he calls a "systemic event" that could rock the markets.
He pegs this event sometime in the next 5 years, based on what he's seeing with regards to low interest rates fueling high mortgage debt around the world.
He still advises keeping some of your money in the system, making more money, but says hard assets and even simple cash is worth keeping around for now.
'It's time to hold physical cash,' says one of Britain's most senior fund managers - Telegraph


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## sideKahr (Oct 15, 2014)

How can a fairly wealthy person (ostensibly the target of this managers warning) withdraw enough physical cash to make a difference, without attracting unwanted attention?


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## Mad Trapper (Feb 12, 2014)

Paper is toilet paper.

Get some gold, guns, or tools


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## Seneca (Nov 16, 2012)

I have mixed feelings on that, If I withdraw the money and hold the cash and a systemic event (crash) occurs. I may be holding worthless paper when they reboot. I'd much prefer metals over cash. Gold and silver, lead copper and brass.


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## Chipper (Dec 22, 2012)

Take a little out at a time, over time. Should have been done already. If for some reason the banks shut down, EMP, riots, financial collapse, etc, how will you get your money?? What are you going to get with a deposit slip??


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## Kauboy (May 12, 2014)

Seneca said:


> I have mixed feelings on that, If I withdraw the money and hold the cash and a systemic event (crash) occurs. I may be holding worthless paper when they reboot. I'd much prefer metals over cash. Gold and silver, lead copper and brass.


He makes that point too. He encourages precious metals, but still thinks some physical currency should be on hand if banks stop allowing withdrawals and your gold isn't liquid enough to use in the hurting market.


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## Medic33 (Mar 29, 2015)

buy large quantities of liquor, guns, ammo, and salt
these things will always hold value even over gold and can be as liquid as you want.


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## AquaHull (Jun 10, 2012)

Hit the ATM ,take a few hun out and bury it with a gun and ammo


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## Camel923 (Aug 13, 2014)

Lots of uncertainty in the EU. Greece. Other countries are not far behind.


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## Seneca (Nov 16, 2012)

Kauboy said:


> He makes that point too. He encourages precious metals, but still thinks some physical currency should be on hand if banks stop allowing withdrawals and your gold isn't liquid enough to use in the hurting market.


Having cash on hand as a short term measure to stay solvent during a banking shut down? I agree! That is a good idea. I was looking at it from a longer term perspective. So yeah it makes sense to salt some cash away to tide one over for a few weeks.


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## Kauboy (May 12, 2014)

Seneca said:


> Having cash on hand as a short term measure to stay solvent during a banking shut down? I agree! That is a good idea. I was looking at it from a longer term perspective. So yeah it makes sense to salt some cash away to tide one over for a few weeks.


If anything, that worthless paper money will still mean something to the unknowing.
It will likely still be used in trade, even weeks after an event.
Take advantage of the sheep who still want your greenbacks.
Give them your toilet paper, and take whatever stuffs they're selling.


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## Maine-Marine (Mar 7, 2014)

Medic33 said:


> buy large quantities of liquor, guns, ammo, and salt
> these things will always hold value even over gold and can be as liquid as you want.


Salt.... honestly salt is a money maker... salt has always had value and uses


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## PatriotFlamethrower (Jan 10, 2015)

Seneca said:


> I have mixed feelings on that, If I withdraw the money and hold the cash and a systemic event (crash) occurs. I may be holding worthless paper when they reboot. I'd much prefer metals over cash. Gold and silver, lead copper and brass.


I'm with you, Seneca. Anybody who is counting on their retirement nest egg of paper promises, 401Ks, and the like, to be available when they retire, should put down the crack pipe and re-evaluate what the hell they are doing.

We only keep enough paper money in our bank account to pay our monthly bills. That's it. The rest gets converted to what I call "preppers wealth".


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## Seneca (Nov 16, 2012)

Kauboy said:


> If anything, that worthless paper money will still mean something to the unknowing.
> It will likely still be used in trade, even weeks after an event.
> Take advantage of the sheep who still want your greenbacks.
> Give them your toilet paper, and take whatever stuffs they're selling.


Seems reasonable to think there will be some hang time between the crash and reality settling in.
I think a devaluation is what will actually happen. There is a crash, they freeze accounts and when things reboot it's done in new currency. So as example instead of having 4000 dollars in the bank you now have 40 which is entirely different in all ways from the old currency.

They are not going to do away with the fiat money system, nor will they be able to ignore previous obligations since doing so while attempting to institute a new fiat money would actually work against them.


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## Ripon (Dec 22, 2012)

It takes time. Sadly but you pull out cash with every purchase. Ever hit a casino. Go to one booth buy chips walk to other booth and cash them in. Not hard to pull 3k out and not get noticed. I'm not one to house $10k in cash anyway I don't have that kind of money. I also like high face value silver coins....Canada sales some $50 one's right now....



sideKahr said:


> How can a fairly wealthy person (ostensibly the target of this managers warning) withdraw enough physical cash to make a difference, without attracting unwanted attention?


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## dsdmmat (Nov 9, 2012)

Steel, copper, brass, lead and aluminum all the metals I need.


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## Lastminprepper (May 24, 2015)

I watch, read, listen for anything about economic collapse. Anything thats paper get rid of, if you have 1000 dollars in gold on paper? I get rid of it and get real FAST.






Karen Hudes use to be a big mucky muck


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## Roaddawg (Mar 28, 2015)

I don't really think this guy is saying anything new.

And his prediction of "in the next 5 years" is like saying a super volcano is going to blow in the next 5 years!

It's very possible (not the volcano) that some type of serious financial crisis is looming and I don't have to be a money management guy or a former member of the US House trying to sell a book to predict that one!

I don't think most Americans have the ability to buy enough precious metals to really support them for any amount of time. He may also be attempting to jump the prices of those precious metals for his own financial gains. 

Everybody's got an angle!


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## redhawk (May 7, 2014)

I try to keep some cash at home along with some precious metals and of course some brass/lead combo ...JM2C


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## Kauboy (May 12, 2014)

The wife and I have been, unintentionally, keeping about 1/5-1/4 of our cash value at home. That isn't much, mind you, since our family expenses eat a bunch of it. We just like the feeling of knowing we have access to quick cash in case of an emergency. There is a calming effect from sitting down and counting through a few bills once in a while.


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## Seneca (Nov 16, 2012)

I agree, having tangible cash is comforting, yet the trend is away from cash and toward computerized/digital transactions in which ones and zeros are exchanged. If that ever becomes fully realized hold onto your hats, because you will no longer be in control of your money. They could feasibly shut all your accounts down with a mouse click. You might say, well they can do that now and of course I'd agree, yet now you still have cash to fall back on.


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## PaulS (Mar 11, 2013)

I prefer gold coins... SWIMMING in gold coins! I love it!

OK, it's pennies and they are zinc and it isn't even a wading pool...

But I have LOVE!


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## Urinal Cake (Oct 19, 2013)

Mad Trapper said:


> Paper is toilet paper.
> 
> Get some gold, guns, or tools


And a source for Water!


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## 8301 (Nov 29, 2014)

I suspect this thread is getting a bit off target. The guy is suggesting that the market is going to go down and it's time to "cash out" to retain your earnings before the market drops. Some people call the "timing the market" which means buy low and sell when the price is peaking. It isn't about physical cash, instead you simply hold a lot of cash in your investment account with a bit extra under your mattress.

An investor friend of mine told me that sometimes the trick to a successful portfolio isn't to make the most money but to protect that money when the market drops which happens about every 10 years. It's a cyclic pattern but on the average it goes up about 7% over the long term.

Yes, Keep some cash under the mattress, it's great for emergencies but we always get a bunch of doomsayers (also known as bears) when the market has been rising for more than 5 years straight. Personally I think we've got a few more years before the market has a long term downswing. Don't keep all of your money in cash under the mattress.


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## BagLady (Feb 3, 2014)

FoolAmI said:


> I suspect this thread is getting a bit off target. The guy is suggesting that the market is going to go down and it's time to "cash out" to retain your earnings before the market drops. Some people call the "timing the market" which means buy low and sell when the price is peaking. It isn't about physical cash, instead you simply hold a lot of cash in your investment account with a bit extra under your mattress.
> 
> An investor friend of mine told me that sometimes the trick to a successful portfolio isn't to make the most money but to protect that money when the market drops which happens about every 10 years. It's a cyclic pattern but on the average it goes up about 7% over the long term.
> 
> Yes, Keep some cash under the mattress, it's great for emergencies but we always get a bunch of doomsayers (also known as bears) when the market has been rising for more than 5 years straight. Personally I think we've got a few more years before the market has a long term downswing. Don't keep all of your money in cash under the mattress.


Or, for those of us who don't trust the market, we can keep gold and silver in our hands, and not worry about depreciation or highs and lows...then BOOM...crash.


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## PaulS (Mar 11, 2013)

The problem with gold and silver is that it never truly increases in value. The dollar decreases so it takes more money to get the same amount of metal but when adjusted for inflation gold and silver always have the same value.

If you want to increase your wealth you need to grow your money faster than inflation and then get out of the investment before it "adjusts".

For every dollar made in the stock market someone else has to lose a dollar.


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## Prepared One (Nov 5, 2014)

I always have between few hundred to a thousand here in the safe just in case. I figure after the first week or so after SHTF it will only be good to wipe your ass. I like having the cash on hand now just for emergencies, I can't do with out it, have to have it purchases, and such. There is always 3 or 4 hundred in change here that I turn in towards my gun and prep supplies.


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## Prepp(g)er (Feb 18, 2014)

Mad Trapper said:


> Paper is toilet paper.
> 
> Get some gold, guns, or tools


Some green T.P. might be useful tho^^


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## PatriotFlamethrower (Jan 10, 2015)

PaulS said:


> The problem with gold and silver is that it never truly increases in value. The dollar decreases so it takes more money to get the same amount of metal but when adjusted for inflation gold and silver always have the same value.
> 
> If you want to increase your wealth you need to grow your money faster than inflation and then get out of the investment before it "adjusts".
> 
> For every dollar made in the stock market someone else has to lose a dollar.


So how do you explain the explosion of gold and silver in value in the past decade? Where was the "dollar decrease" and the "inflation" that caused gold and silver to quadruple in value?

Gold and silver are both artificially LOW right now. The advent of "paper" gold and "paper" silver has allowed for manipulation of the TRUE value of gold and silver.

The only time that gold and silver "always had the same value" was when the U.S. government fixed the prices of gold and silver.

Those days are long gone. Gold and silver are commodities now, and they no longer, theoretically, have their values set by the government.


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## 1skrewsloose (Jun 3, 2013)

If paper money is junk at the bank, it's just as worthless at your home. although you might not be able to get it out of the bank ,my 02.


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## kevincali (Nov 15, 2012)

Prepared One said:


> I always have between few hundred to a thousand here in the safe just in case. I figure after the first week or so after SHTF it will only be good to wipe your ass. I like having the cash on hand now just for emergencies, I can't do with out it, have to have it purchases, and such. There is always 3 or 4 hundred in change here that I turn in towards my gun and prep supplies.


Just about the same here. I usually keep a few $$$$ around for just in case. I actually JUST turned in my change and got enough to pay off a gun I have on lay away. I was going to whittle away at it, but I'm getting impatient haha.

Never hurts to have cash floating around, or a change jar, or barter items.....


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## 1895gunner (Sep 23, 2012)

Barter items will take you farther than cash after "an extended event". Some cash for near term things like gas and food would be very helpful. After everyone wakes up after the "I cant believe the government isn't going to help me" awareness - then barter will take over. 

Guns
Ammo
Alcohol
Spices
Toilet Paper

1895gunner


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## 8301 (Nov 29, 2014)

BagLady said:


> Or, for those of us who don't trust the market, we can keep gold and silver in our hands, and not worry about depreciation or highs and lows...then BOOM...crash.


To an extent I agree but since I'm not 100% sure a huge earth wrecking SHTF situation will happen in my lifetime I like the idea of some investing for retirement. Yes, I keep a bit of cash and a bit of silver but I also keep a bit of investments. Just not putting all if my eggs in one basket.

As I've said before I look at prepping as insurance. Something hope to never need but I still buy some "insurance". I prep enough that most neighbors would probably look at me funny if they knew but I'm not going to spend every penny on beans, boots, and bullets or even silver.


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## Kauboy (May 12, 2014)

PaulS said:


> For every dollar made in the stock market someone else has to lose a dollar.


Can you elaborate on this? (As a gentleman, I am compelled to inform you that I have a loaded response ready, but I'm not sure it's applicable just yet.)


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## PaulS (Mar 11, 2013)

Well the market is controlled with money and supported by faith in the corporations being profitable. Except for corporate expansion when you buy, someone has to sell. The seller can "make" money if the stock is well supported by selling it. The buyer invests his money thinking it will grow. If it does then the one who sold it "lost" the money made by the buyer. If a stock drops then anyone holding it loses money. Those that buy after it drops make that lost money as it gains again. The ones who held it just make up some of the loss unless they sold it when it was low. In that case they lose the money.

For every profit there is a loss. That is not to say that for every loss there is a profit - A lot of money can be lost without anyone making money from that loss. The two are separate features.


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## Kauboy (May 12, 2014)

PaulS said:


> Well the market is controlled with money and supported by faith in the corporations being profitable. Except for corporate expansion when you buy, someone has to sell. The seller can "make" money if the stock is well supported by selling it. The buyer invests his money thinking it will grow. If it does then the one who sold it "lost" the money made by the buyer. If a stock drops then anyone holding it loses money. Those that buy after it drops make that lost money as it gains again. The ones who held it just make up some of the loss unless they sold it when it was low. In that case they lose the money.
> 
> For every profit there is a loss. That is not to say that for every loss there is a profit - A lot of money can be lost without anyone making money from that loss. The two are separate features.


Fair enough. It's a point on the value of exchange.
I was wondering if you were inching into the "stagnant economy" line of thinking, where there is only a finite amount of wealth. This is the line that leads some to think "redistribution" will solve all our problems.
Damn... and I had some Milton Friedman quotes all lined up and ready. :razz:


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## PaulS (Mar 11, 2013)

Share the quotes anyway! That kind of information can help everyone! 

Or you can save that stuff for when I have a gray moment or just plain screw up. It happens - more often than I like!


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## PatriotFlamethrower (Jan 10, 2015)

PaulS said:


> Well the market is controlled with money and supported by faith in the corporations being profitable. Except for corporate expansion when you buy, someone has to sell. The seller can "make" money if the stock is well supported by selling it. The buyer invests his money thinking it will grow. If it does then the one who sold it "lost" the money made by the buyer. If a stock drops then anyone holding it loses money. Those that buy after it drops make that lost money as it gains again. The ones who held it just make up some of the loss unless they sold it when it was low. In that case they lose the money.
> 
> For every profit there is a loss. That is not to say that for every loss there is a profit - A lot of money can be lost without anyone making money from that loss. The two are separate features.


Your description of how the stock market operates may have been valid in the early 1900s, but TODAY'S stock market is more like "Fantasyland", where wealth is created out of thin air, where gold and silver turn from precious metals into paper, where massive amounts of computerized trades are made in milliseconds for fractions of a penny, where ETFs and sells and holds and insider trading are either already illegal or should be illegal, where the SEC has lost control and doesn't care, and where Ponzi schemes lurk around every corner of Wall Street.

I WISH your description of the stock market were still true. But the stock market is no longer a "linear" proposition. It is a the biggest SCAM the world has ever seen.

ANYBODY who has ANY money invested in the stock market is better off taking that money and going to their nearest casino. At least you'll get a free meal and free beverages before they bend you over.


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## littleblackdevil (Jun 29, 2013)

The money I make from side jobs goes in the home safe. It gets used for my own :fun purchases" (guns, or ammo, or is saved for just in case). It will always have some value. Even as toilet paper. More than a one or a zero will fetch me post-SHTF.


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## 8301 (Nov 29, 2014)

Ok, I'm not saying a person should keep these amounts around but...

I figure that in a SHTF situation a person would not have the time to spend more than about $3000 cash before things got too out of control or people just shut their businesses down. If the power went out you'd probably be limited to only a few hours purchasing time for the stores willing to accept cash only. The larger stores with large computerized register systems will shut down within 15 minutes when their power goes out.

If things go bad nationwide many people will quickly loose faith in accepting cash. If the crisis starts locally people may be willing to accept cash for a while longer.

You may be able to talk people to accept bullion such as silver or gold once it becomes obvious that the stores which they hold the keys too will never officially reopen. Still it may be really hard to convince your local convenience store manager to sell you stuff for silver unless they know you personally. Larger stores like WalMart probably won't sell anything unless looters just take it.

As far as using silver once local trade restarts I suspect the #1 currency for the first year or so will be food and ways to produce or store food.

Thus, a bit of cash, a bit of silver, and the rest in the market for retirement that I hope to enjoy. Oh yea,,, and a bit for long term preps like food and water,


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## 8301 (Nov 29, 2014)

And if you plan to hold silver for trade I'd suggest easily recognizable newly minted coins like 1 oz Silver Eagles. No Chinese Silver Pandas or Australian silver coins.

While 90% old silver coins do have a lot of silver in them many people won't recognize that fact so stay with coins people will recognize and trust.


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