Store of value?

[JohnA1]

I only use cash for everything (not internet-sourced) except if I find myself accidentally in a 'card-only' till

In the plandemic, any small business that refused to accept cash I would just walk away from (and wish them good luck)

[SidS]

Just now, JohnA1 said:

I only use cash for everything (not internet-sourced) except if I find myself accidentally in a 'card-only' till

In the plandemic, any small business that refused to accept cash I would just walk away from (and wish them good luck)

This was me until the winter of 2019 - cash for everything, except internet purchases.

I got fed up of trying to find cash machines! Which of course is all part of the forced shift to cashless.

[JohnA1]

Petrol stations can be particularly funny.

Some act as if they've never seen cash before. Amusing..

[Bigmarc]

8 minutes ago, SidS said:

This was me until the winter of 2019 - cash for everything, except internet purchases.

I got fed up of trying to find cash machines! Which of course is all part of the forced shift to cashless.

Same as me, never bought anything online (becides eBay coins). Always used cash, but after that year I have been cashless and hardly go to a shop. I have a small pot in the house that holds anything I flog on Facebook. The only problem I am finding is that all my bigman shops have shut. That's the only thing from the old days I need back,, I have been in the same pair of jeans and t shirt for 5 years now.

[ZRPMs]

I'm sorry @carrigher82I know its got absolutely nothing to do with "Store of Value" unless were talking about the pockets.

15 minutes ago, Bigmarc said:

I am finding is that all my bigman shops have shut. That's the only thing from the old days I need back,, I have been in the same pair of jeans and t shirt for 5 years now.

Has anyone tried to buy cotton shirts. Not the polyester c**p or the reconstituted plastic bottle spun into fibres. Its impossible, the b!**dy material has been made illegal. I cant wear them fleece's or fleece lined things I build up static like nobody's business. Unless that the plan plug a capacitor in your rear portal and when you get home stick in you newly legislated EV to give you an extra mile or two on your range. Right I'm off to watch some pub landlord.

Cash = Measure of exchange, Good short term. 

Assets, Tangible items, Property = Better as stores of value or wealth

Digital currencies or forms of payment = sadly the way we are heading  

[Bratnia]

8 hours ago, ZRPMs said:

I understand that gold and stocks as assets would, in general increase over time allowing for your SWR of 3.333% but the hard US$ currency stuffed under the mattress. Surely If you put $30,000 there and took £900 out each year after 30 years you would have nothing left. On top of that 30 years ago $30,000 in 1992 is equivalent in purchasing power to about $62,497.31 in 2022, an increase of $32,497.31 over 30 years. The dollar had an average inflation rate of 2.48% per year between 1992 and 2022, producing a cumulative price increase of 108.32%. This means that prices in 2022 are 2.08 times as high as average prices since 1992, according to the Bureau of Labour Statistics consumer price index. The inflation rate in 1992 was 3.01%. The inflation rate in 2022 was 7.86%. The 2022 inflation rate is higher compared to the average inflation rate of 1.96% per year between 2022 and 2023.

Putting it slightly differently. Each year, the cash under the bed, would have on average lost 2.48% of its buying power. meaning that the $900 you've taken out today would have had the spending power of about $1,872 back in 1992.

This has to illustrate that cold hard cash is not a store of wealth, but rather a measure of exchange.

Broadly stock prices might rise and offset inflation, along with paying dividends on top. Gold might broadly pace inflation. Hard cash will lose to inflation, but supplemented with those stock dividends be more inclined to also offset inflation.

Adding new money to the laggard, or drawing from the leader is a form of rebalancing/trading, and multiple assets with the same broad reward expectancy (0% real) but with varying volatilities and correlations will tend to yield a positive overall real reward. Individually pace inflation in a wild manner, but collectively more closely align to inflation. 3.33% 30 year SWR is basically just the return of your inflation adjusted money, i.e. paced inflation. In practice the historic volatilities/trading yielded a additional surplus on top of that.

But in practice daft to hold hard currency such as USD, instead you might put that to work and earn some interest on top in perhaps a safe manner such as via US T-Bills. Fully guaranteed no matter how much you might 'deposit' and safer to (otherwise at risk of having the hard cash stolen). Such interest will uplift overall rewards. A third 'cash' earning 3% interest adds 1% real to the whole.

[Bigmarc]

44 minutes ago, ZRPMs said:

Cash = Measure of exchange, Good short term. 

Assets, Tangible items, Property = Better as stores of value or wealth

Digital currencies or forms of payment = sadly the way we are heading 

Cash I feel won't ever go away but very little will use it.

I am very much an asset man, I pretty much turn all eBay sales and spare cash into something, gold, silver a bit of art and little crypto. 

Digital. The biggest push forward to any indication it's time. How much time does it save? Time is probably the most valuable thing and unfortunately I am not sure it's possible to automate cash. Remember the days when you use to have to drive to blockbuster, search for a movie, rent it out, go home and watch it and then take it back. This no longer exist because of time saved just to push a button on your remote. Same thing with cash, I think one day you will have to pay to deposit it because of the difference in time and cost between cash and digital. 

[ZRPMs]

New store of value Britons would initially be limited to £20,000 of digital pound – Bank of England (msn.com) 

Its happening, You'll own nothing and be happy about it. Even cash. 

[Anteater]

5 minutes ago, ZRPMs said:

New store of value Britons would initially be limited to £20,000 of digital pound – Bank of England (msn.com) 

Its happening, You'll own nothing and be happy about it. Even cash. 

Apparently it's because it's supposed to be for exchange to reduce transaction costs only and explicitly not to be a store of value.

I'm still concerned it's an attempt to push people away from physical cash, though.

Edited February 8, 2023 by Anteater

[ZRPMs]

1 minute ago, Anteater said:

Apparently it's because it's supposed to be for exchange to reduce transaction costs only and explicitly not to be a store of value.

I am concerned it's an attempt to push people away from physical cash, though.

Thin end of the wedge.

[ZRPMs]

3 minutes ago, Anteater said:

Apparently it's because it's supposed to be for exchange to reduce transaction costs only and explicitly not to be a store of value.

I am concerned it's an attempt to push people away from physical cash, though.

Sorry, My statement was meant to be ironic. We won't be allowed to have a store of value. I think was we are supposed to be is the sore of value for the select few. Given just enough to be productive members of the population.

[Bigmarc]

50 minutes ago, Anteater said:

exchange to reduce transaction costs only

I am hoping they are looking to reduce time as well. I find it astonishing that I can send a video or an email to Australia instantly but money will still take a few days.