According to CNN, sales of security boxes and home vaults have increased in the wake of recent economic uncertainty. This is no doubt a direct result of individuals choosing to withdraw their cash savings and collect their precious metal assets for self-storing. It's an instinctive reaction to negative economic news. Unfortunately, it's also one of the worst things people can do while the economy struggles to recover.
During the Great Depression, President Franklin D. Roosevelt would go on the radio weekly in an effort to persuade Americans to start trusting banks again. At the time, one of the biggest inhibitors of the economic growth necessary for recovery was the tendency for Americans to hold onto their saved capital on their own terms – usually hidden away somewhere inside the house. This meant that banks had an enormously hard time getting their hands on the cold hard cash necessary for lending, which slowed growth substantially. However, President Roosevelt stuck with the issue, and slowly, but surely, people started to once again entrust their money to banks.
Keeping It Safe
The recent revelation that more Americans are buying personal safes than ever before brings the issue of personal financial panic to the forefront of our current economic turmoil. Unemployed individuals long-since graduated from nursing schools and others sitting on college degrees are becoming increasingly pessimistic as global market news continues to take turns for the worse. Families are concerned about the long-term security of college savings and retirement funds. These are natural responses to the modern economic dilemma, but as it was during the Great Depression behaving this way only makes things worse off in the long-run.
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There's no strong evidence indicating that banks and other financial institutions cannot be trusted for the foreseeable future. So long as you give your money to a bank insured by the FDIC, you aren't at risk of losing your wealth. Those who take their worry to the next level and fret over fears that the U.S. Federal government is on the verge of disintegrating under its debt, forget that if the government goes so does the value of the cash they're hoarding inside of their homes. They also forget that gold and other precious metals are only worth what the next person pays for it. In the event of economic Armageddon, who will want to know how to buy gold when necessities themselves will become the bartered object?
No one can guarantee that the future doesn't hold some sort of unforeseen financial crisis that makes our current one look like a game of Monopoly. But even if such an event occurs, you won't be better off because your cash is in your house. By the time such a thing occurs, that money won't mean much.
So in the meantime, continue to put your money and valuable assets back in the bank. It contributes to the grander attempts at economic recovery which will make the long-term situation for you and your family better than if you keep your valuables in your house. Plus, you save thousands of dollars by not buying a ridiculous safe.