This is partially inspired by a related question that was posted over on Main Street. I have been unable to make up my mind on this and would appreciate some Turdite input.
I am currently building up my emergency funds (split between a "high interest" savings account and cash on hand.) I have good reason to believe that I will need to rely on this cash approximately one year from now (summer 2013) due to circumstances that are likely inevitable. I normally keep only 3 months worth of fiat for emergencies but was planning to extend to 6 months or farther. Given our economic climate and all the variables in the next 12-18 months, I'm not sure how much I should be in true cash and how much of the new emergency fund should be additional PM purchases. I know that no one has a crystal ball but what do you feel comfortable with?
3 months of FRN's? 6? 9-12? Everything above and beyond the magic number is put immediately into physical PM.