| | | Expropriation risk is so under-recognized. I worry about these things for my parents, who has most of their savings (except for housing) in savings accounts (crazy, I know... They don't understand stocks &/ compound interest ¯\_('',)_/¯ In their case, the main risk is probably inflation risk though (as there's no value in fiat money to expropriate, IMO) (which, however, gold would probably be good against too).
If I had a lot of money, I think I would buy gold for a large part, and bury it under ground, preferably at one's property, in one's garden or something (especially if one has an additional residence in the middle of nowhere). Gold and/or silver/copper has had immediately recognizable value for millennia. Good to have some ready for an eventual crisis. Also, maybe we should worry about war again. Like w/ pandemics and earthquakes, it can go a long time between breakouts. When they do come, it is often worse. (Beach ball effect in combo with "bad societal immune defense b/c of having used it in long time".
Also, extortion/black mailing risk. So many ways to lose all or large part of one's accumulated life savings.
As I've said before, I'd split it between gold, stocks and land. Of course if private property rights should go, (digital) stock certificates and even land rights are valueless, as well as those zeroes on a screen. One might wanna own something that is hidden away, for such a situation.
Kind of like the horcruxes from Harry Potter (the concept through which Voldemort could live indefinitely by splitting up his soul in 7 parts and hiding it in remote places, with defense systems...).
That's my image for how to build a portfolio; have a backup for the backup, etc.: not an "all weather portfolio", a "way-worse-than-the-worst-case-scenario portfolio". |
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