I can't remember who it was that split money into 3 categories.
- God's money is the hard metal currency such as gold and silver, and to a lesser extent, platinum and copper. You can buy a gold Brittania with a face value of £100, but it will cost around £1,000 if you buy one from the Royal Mint. This means that it is not in general circulation, but it is used for certain high value international purchases. At the other end of the scale, a 2p coin has a high copper content, and is worth around 3p. These are still in general circulation.
- Government money is the fiat currency of various nations. At the moment, there seems to be a rush into US dollars as a reserve currency. Given the current US debt levels, this doesn't appear to be the wisest choice. Other national currencies seem to offer even worse security.
- Crypto-currencies are the people's currency, and offer an interesting safe haven possibility. Bitcoin is becoming the new gold, and one or two of the others appear to provide a hedge against economic collapse, but the choice of an alternative currency is fraught with risk. Some will stabilise and offer exceptional returns, and some will become worthless. Choosing between them is not a simple task.
So what do you think is the best mix of currencies. My choice at the moment is Bitcoin and silver coins, but I think I should diversify a bit.
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