In the face of crisis – whether wars, natural disaster or “only” economic breakdown – you need to have some assets to survive. The key is not only what to have, but also in what proportions to ensure fluidity and protect the value of your property.
Crisis? What crisis?
You probably warned loved ones many times as a cautious person to prepare for a crisis: whether it is economic or military. Yes, I know what you heard then: “What a crisis, nothing happens and nothing threatens us.” However, crises do not appear out of nowhere – they are part of our lives, human history and the natural cycle of the world.
The wars that have been the most severe forms of crises for centuries are most often exploded because of the fight for resources, disputes about territories, or more broadly – political and economic competition. Although we often interpret them as sudden events, they are in fact the result of long -term tensions and unsolved conflicts of interest.
For example, what you are observing now in Ukraine was not a whim of Vladimir Putin. From the point of view of Russia, it is a response to the threat from the West – the expansion of NATO and the European Union to the east (looking at the matter through the eyes of the Kremlin). Moscow recognized this as a direct violation of her influence and security zone. The Russian narrative also indicates the “defense of the Russian -speaking population” in Donbas and the Crimea, as well as an attempt to maintain Ukraine in orbit their political and economic influence. From the perspective of Ukraine, however, this was like an unjustified aggression and violation of its sovereignty and the right of the nation to decide on its own future. However, a lot of geopolitical analysts have previously indicated that there would be a solstice and fights at some point.
It is similar with natural disasters – floods, earthquakes, hurricanes or drought – they are part of the cyclicality of processes occurring on Earth. You can’t stop them, you can only try to prepare for them and limit their effects.
And finally, the economies also pass through periods of growth and breakdown. Economic crises appear regularly because financial systems are based on debt, speculation and human psychology, which drives both euphoria and panic.
As a result, every era, every generation, regardless of technological progress, struggles with returning waves of uncertainty – whether because of wars, natural disasters or cyclical recessions. How to prepare for them, especially in terms of property?
Cash – the foundation of the first days of crisis
In a situation where ATMs stop working and card payments are not possible, physical money counts. So let’s accumulate a supply in local currency, preferably in small denominations that are easy to use for everyday shopping. A good solution is also to have some cash in strong international currencies, such as the US dollar or euro, which in the event of local currency hyperinflation may maintain real purchasing power.
Practical tip: about 10-15% of liquid property should be kept in cash, divided into small amounts and stored in several places. This will help us survive the first days of the war.
Gold – Protection of values in a longer horizon
Gold is a timeless value, which, as history teaches, allows us to survive war, banking crises and falls of states. It is worth having bullion coins. Avoid investments in ETFs (finally at the outbreak of the war, nothing from “paper gold”) or bars (these are easier to fake than coins, and you do not have apparatus to examine what exactly the bars content is). It is not about paying with gold in crisis for bread – its role is rather to protect savings against inflation and the possibility of transferring assets to the future. It’s a bit of a river in such a way as not to wet your feet.
Practical tip: 10-20% of the property should be placed in physical gold, remembering to store them safely and a discreet way.
Cryptocurrencies – mobility and independence
And finally: Bitcoin and other main cryptocurrencies! And they can be useful to you, acting as “digital gold”. They will give you independence from the banking system and allow you to send values over long distances, even through the limits, in situations where other channels are blocked. The condition of their usability, however, is access to the Internet and safe storage of private keys (above all, do not keep cryptocurrencies on the stock exchanges!). Fluctuations of courses mean that cryptocurrencies are not always a certain means to implement everyday purchases, but they can be a salvation in the event of a quick evacuation and thus the transfer of savings. It is easier to drive through the limits with a small note with a private key saved on it than with a set of gold coins.
Practical tip: 5-10% of the property can be kept in cryptocurrencies, with an emphasis on BTC.
Actions – Avoid during the war!
During the war and deep crises, the stock market ceases to be a safe place for capital. Shares quotes are rapid under the influence of panic, outflow of foreign investors and the collapse of the local economy. Companies lose their ability to function normal – supply chains are interrupted, the internal market shrinks, and the profits drop or disappear completely. In addition, governments in emergency situations can interfere in the market by introducing restrictions on trading or even suspending trade. Therefore, actions that in times of stability can be a source of growth, in war conditions become extremely risky and can mean the loss of most of the invested capital. At such moments, it is much more reasonable to transfer funds into shock -resistant assets that can be used in practice.
Diversification – the key to peace
However, no single value will provide you with full protection. Cash is good in the first days of chaos, gold protects the property in the long run, and cryptocurrencies enable mobility and independence. Therefore, it is reasonable to divide resources in such a way that in various scenarios it has real opportunities. The portfolio should always be complemented by real goods: a supply of water, food, medicines, energy sources and everyday objects. In crisis, they have a primary value – money, gold or crypto can be useful only when the basic needs are secured.
Summary
Crises – whether they result from wars, natural disasters or cyclical economic breakdowns – are an inevitable part of our reality. They cannot be completely predicted or eliminated, but you can prepare for their effects by building a balanced assets portfolio and taking care of the real resources necessary for survival. Cash provides liquidity in the first phase of chaos, gold protects assets in the long run, and cryptocurrencies give independence and financial mobility, especially in the face of geopolitical tensions. The combination of these three elements, supplemented with stocks of practical goods, gives not only greater material security, but also mental peace – the awareness that even in difficult times we have real tools to maintain control over our lives.
