Hi,
While cash is safe and liquid and does not fluctuate like the stock market, many people believe that the responsible thing to do is to keep their money in cash. This is especially true during an uncertain economy. However, the thing that is not being discussed here is the fact that “doing nothing” with cash is actually a decision that comes with certain consequences.
Cash Feels Safe, But It’s Quietly Changing
Cash does not disappear overnight, and this is the reason it is safe. However, safety and security are two vastly different things. When cash is left idle for too long, the truth is that inflation will slowly start to eat away at its value. Even when inflation is “under control,” the fact of the matter is that prices will not actually go down.
When cash is not working for you, the truth is that it is working against you. However, the pace of inflation is so slow that the average person will not even notice.
Waiting on the Sidelines Is Still a Market Call
There are many people today who are choosing to hold onto their cash because they are waiting for the right time to enter the market. However, the truth of the matter is that “doing nothing” is actually a decision. When you are choosing to hold onto your cash, you are essentially making a bet that the market will improve before the value of cash is reduced.
While this is not an impossible bet, the truth of the matter is that the markets are rarely ever right, and when they are, the opportunities will have long passed you by. Doing nothing is not the same as not taking a risk.
The Emotional Burden of Holding Too Much Cash
Of course, there is also an emotional component of this that is not talked about enough. There is always second-guessing going on in your mind if you are holding cash in uncertain times. Should you invest now? Should you wait longer? What if prices go up? What if they go down?
The problem is that second-guessing is stressful. You don’t end up feeling comfortable. You end up feeling stuck. Assets that are chosen thoughtfully, rather than in an emergency, can be more comforting than cash.
Why Some People Prefer Holding Physical Assets
That is why many people end up choosing to invest in physical assets like physical gold and silver instead of cash. This is not done in an attempt to beat the market or make quick profits. It is done in an attempt to preserve wealth over time in uncertain financial systems. These assets are not dependent on any promises, policies, or perfect conditions. They just are.
Making a Conscious Choice Makes You Feel Better Than Staying Still
The point is not to be hasty in your decisions. It is to be thoughtful. It doesn’t matter whether you choose cash, investing, or physical assets like gold and silver. What matters is that you are making a conscious choice. Staying still by default is different from staying still because of choice. When you understand your choices, you can be confident. And in uncertain financial systems, it is confidence that feels comfortable, not inaction.
