The whole world is melting, economy wise. For those making a living as a businessmen, business is suffering a free fall. For those living out as a wage earner, there will be no bonuses or worse, retrenchment is looming. The situation is fragile and there is no guarantee when it will improve.
During bad times like these, age old advises given by our forefathers comes to heart. Be frugal. spend wisely, save up for a rainy day, all this seems so true now. If we had heeded what has been taught by our parents or grandparents, we will have no problem tiding over this mess.
Another wise advise that do not seem relevant during the times when we had lots of cash at our disposal is to invest in precious metal like gold or silver. Our grandparents who were victims of the second world war had the wisdom of exchanging their paper money to gold and silver. For someone who never had an education in economics, they had the foresight to see that these precious metal will always be dependable. Even when the whole country falls and their currency becomes bundles or worthless paper, gold and silver will never depreciate in value.
The economic meltdown we are seeing now puts us in a very similar situation as our grandparents. Our money are getting smaller by the day and even though it will not totally turn into worthless paper, we will not be getting much value from it in the long term. For those who has spare reserves in their savings, they will see their money depreciate daily.
To overcome this unwanted depreciation, now is the time to start considering what our forefathers did. Convert our cash reserves to precious metal to preserve their true value. Buy silver or gold with a portion of your reserves. These precious metals will guarantee your savings from becoming quite worthless when the situation worsens in the near future. Furthermore, if you really need cash in cases of emergencies, silver or gold can be easily sold and converted back to cash. When you sell, you will probably get more that what you first paid them for.
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