When the credit crunch goes supercritical, will your duly paid-off credit cards still work? How many physical FRNs do you have on hand, right now?

IMO, a large pile of $20 bills -- nice, even units for purchasing food and gas -- is a Very Good Idea.

It used be a significant amount of physical gold. After I made 30% on it this summer and listening to Nothing, I replaced it with FRNs and a lot less of them. In the end, it freaked me out having so much gold stuffed in my crappy rental apartment.

As a side note, I've been attempting to determine an appropriate ratio of denominations. Right now, I've gone with:

25%-$100
50%-$50
25%-$20

But, I'm considering reversing the $50:$20 to 25%:50%. What are your thoughts?

$10k FRN in mixed denominations
$10k Gold in 1 oz and smaller bullion coins
$10k Silver in silver eagles, bars, and pre-65 coin

It's an insurance policy, not an investment. If things start looking unstable, I'll try to add more FRN's.

Antwallace -

The Henry Winkler $20 bill is what I'm in right now. I look at this like when I hiked the Inca Trail with $USD in Peru a few years back: bring clean, crisp bills, of small enough denomination that I won't mind it if I can't get change on a purchase.

I think $20s offer the most bang for your buck. $100 bills are less liquid if no one else has cash, and you don't have additional things to buy to round out the total.

In the future, you either HAVE something to trade, or you ARE something to trade.

I've actually got a bunch of 10's. You 50's and 100's people are just compensating for your small... well anyway, let me say, the pile of 5's and 10's is very appealing--and that way, I won't waste too much if people don't have change.

$20 bills are excellent. The point about not being able to get change is a very good one.

Also, keep in mind that 1oz of silver is about the same as a twenty dollar bill. I'd readily accept 1oz eagles in trade, but I'd be hesitant about other kinds of silver (incl. rounds). A silver eagle is very easy to recognize, but most people have no experience with them so they should be considered only for a future emergency in which $20 bills are nothing more than toilet paper.

My personal guideline is this:
1-3 months worth in FRNs (net after taxes).
1-3 months worth in silver/gold (mix of weights up to 1oz).

All according to ability off course.

Anybody else have nickels? I've got over $1k in nickels. Seven cents worth of Ni/Cu for only five cents, plus a guaranteed floor on the price if commodities collapse. Inflation or deflation, you can't lose.

You want change, I can make change!

If you're planning on going overseas with FRNs to Asia here's some do's and donts.

1) Do ask for bills in mint condition. Moneychangers may give you a better exchange rate.
2) Don't take ratty bills. Many moneychangers will refuse to accept them.
2) Do take plenty of 100s. I took only 20s and 50s thinking it would be an issue converting 100s. 100s were just as easy and gave a much better exchange rate.