5 Assets To Store Your Wealth During Times Of Crisis (2024)

Crises on a national or international scale are nearly impossible to avoid. A crisis is inevitable, although it may seem like we go for a very long period without experiencing financial or political crises.

Natural disasters, financial collapses, epidemics, and even wars have all occurred throughout human history. In truth, the impacts of the Russia and Ukraine war have just recently been apparent, following the Covid-19 pandemic.

National political or financial crises constantly occur all around the world, even in the absence of a significant global crisis. Human life and wealth are the two most significant things worth preserving since crises are unavoidable.

Although human life is quite important to preserve during crises, living without money is still challenging even after a severe catastrophe. Also, protecting your wealth might be challenging during these times.

Here are 5 ways you can store your wealth during times of crisis.

Since the beginning of time, people have employed a variety of ways to multiply and save their riches. For instance, precious metals like gold were utilized by humans thousands of years ago to protect their possessions. Just like in the early times, these metals are still valuable today. Durability and scarcity are qualities that precious metals share.

Gold has remained one of the most expensive metals since the Roman Empire. It has outlasted both states and regimes. Some fiat currencies, however, have depleted in value in less than a decade. For instance, the yearly inflation rate for the Zimbabwean currency was approximately 600%. Inflation still affects even the strong hard currencies like the U.S dollar, the Euro, and the Great British pound.

Gold weakness

Although gold and other precious metals might sound like a stable way to store your wealth, they also have weaknesses. These weaknesses include.

• Complex logistics

Like all metals, gold is heavy and takes up room. Additionally, anyone who has metal can quickly exchange it or liquidate it. This makes it a property that is highly susceptible to seizure or theft. It is difficult to move, store, or conceal because of its weight and size.

If a law is breached, it also becomes simple for the government to seize your gold.

• Illiquidity

During a crisis, it’s simpler for a nation’s financial system to collapse. As a result, fiat currency may lose much of its value as the inflation rate soars. This implies that it might be impossible to purchase even necessities.

It can get worse if your wealth is kept in gold. It is difficult to divide gold into smaller units. Even worse, exchanging it on the market during a crisis is quite challenging.

1. Financial market Instruments

Various investment opportunities are available in financial markets, which can also serve as a suitable place to keep money safe during a crisis. Assets you can invest in financial markets include stocks, futures, options, mutual funds, annuities, and retirement.

However, during times of crisis, having your wealth in these assets could be risky during times of crisis. The ideal moment for you to invest and use these assets to increase your wealth is during economic stability.

1. Livestock and Foodstuff

Shelter, food, and clothing become the essential elements for a person to survive amid a crisis. Food will never lose value during scarcity or in crises. Additionally, it is simpler for food to become more valuable than gold if the current economic climate worsens.

If you have a lot of food, you can sell and multiply your wealth during these times. In times of crisis, you can count on an upsurge in demand. Similar to how people in the early times used food and livestock to conserve and increase their riches.

For instance, due to inflation, most Zimbabweans were compelled to invest their riches in the land, food, and cattle.

Unfortunately, food and animals can be a difficult way to preserve your riches during a crisis, especially political. They will need logistics for transport, and storage, like precious metals. In addition, they will also require medical care during these tough times.

Once more, food and cattle have a limited shelf life and cannot keep your wealth safe for the longest time.

4. Blockchain Assets

The blockchain space is still a young investment place. Since Bitcoin’s development, it has existed for over a decade. However, blockchain offers several ways where you can store your wealth. These options continue to increase as blockchain continues to evolve. Some of these options are:

• Cryptocurrency

Crypto is a digital asset that acts as money. Some of the popular cryptocurrencies are Litecoin, Bitcoin, and Ethereum. Today according to exploding pages, a business channel, there are over 20,000 different cryptocurrencies in the market that you can use to store, grow and spend your wealth.

To spend your crypto, you need a crypto wallet and crypto cards.

• Stablecoins

These are digital assets, with other assets pegged to their value. The value of most stablecoins is often pegged to the US dollar. Some of the most popular stablecoins are Tether, Dai, and USDC.

You can also hold stablecoins on your crypto wallet. Some crypto cards also automatically convert them to fiat when making purchases.

• Utility Tokens

Most applications nowadays are created on the blockchain with smart contracts. To facilitate most of these applications, you require utility tokens. These tokens help perform a specific function on the blockchain.

For instance, on the Ethereum blockchain, ETH is the utility token. So to buy gas on the Ethereum blockchain, you need access to these tokens.

• Non-Fungible Tokens (NFTs)

These blockchain-based digital assets are unique, and you can’t duplicate them. NFTs include various designs like music, artwork, collectibles, and video game components. NFTs are either artistic or functional, depending on the value they offer.

Unlike most assets, NFTS may be the ideal location for wealth storage. This is due to the privacy and security features provided by the blockchain. Furthermore, NFT cannot be taken from you unless you change ownership, unlike any other assets where you can deposit your riches.

Pros of storing wealth using blockchain assets

• It’s peer-to-peer

To hold blockchain assets, you don’t need institutions like banks. Also, you don’t have to deal with challenges like censorship from institutions. If anyone around the globe accepts your currency, you can go ahead and transact.

• It’s Liquid

Spending cryptocurrency has gotten much simpler due to payment and exchange organizations. Today, you may pay for food at your neighborhood supermarket if you have Bitcoin or Ethereum in your wallet. Additionally, you can access it anywhere and at any time because no middlemen are involved.

Additionally, it doesn’t take much logistics to divide crypto into small pieces.

• It’s discrete

Unlike many wealth holdings, cryptocurrencies let you be the only manager. This means the only one who is aware of your value is you.

A cold or hot wallet on your phone plus a passphrase written down or stored in your memory is all you need. Due to the nature of cryptocurrencies, it’s almost impossible for your assets to get seized, even in extreme circ*mstances.

• Immune to Censorship

We have observed various payment services censoring nations and areas because of their political stance. People with little or no political influence ultimately suffer the consequences. As a result, they won’t be able to access most of their fortune if this occurs.

However, if you keep your money in cryptocurrencies, it is unaffected by censorship. You need an internet connection to grow and access your cryptocurrency money anywhere.

What are the limitations of blockchain assets?

Although blockchain assets are superior in keeping wealth during a crisis, they also possess some limitations. Some of these limitations are:

• Internet reliability

You cannot own or develop your cryptocurrency holdings without the internet. To move and use your cryptocurrency, you need continuous access to the internet. During a political crisis, it could be difficult to access the internet. This might affect access and management of crypto.

Thankfully, some startups have concentrated on finding different methods to address this issue. Some startups use radio and satellite communication technology to solve this issue. For instance, Blockstream, a Canadian blockchain startup, has developed a method that enables you to conduct your Bitcoin transactions using radio waves from a satellite.

Crypto investors will eventually require a hardware wallet to send and receive satellite signals to process cryptocurrency.

Additionally, some blockchain assets have a serious link to the traditional currency. For instance, stablecoins pegged to the US dollar will likely lose value when inflations start to hit hard.

• Low adoption rate by merchants

Although the number of crypto users has grown worldwide, it remains a currency many have yet to accept. In particular, many merchants worldwide are yet to make crypto a form of payment.

However, thanks to innovations like Clubswan’s stainless steel debit card, you can easily spend your crypto for daily expenses.

5. Real Estate

One of the well-liked methods for long-term wealth growth and preservation is real estate. Over time land and homes increase in value. Nevertheless, this might not be the case during a financial or political crisis.

In a political crisis, most people might emigrate to rural areas. As a result, there might be a decrease in the urban population, which would lower the real estate value.