We around the globe and especially in America are facing a very tough financial situation. With over 10 percent out of work, and businesses going bust, many feel hopeless. Some are scared about how to protect their hard earned money. According to experts we are facing some never before seen currency crisis in the U.S.. Many of us are wondering how to protect our hard earned dollars from the impending dollar collapse. Should we invest in gold and silver bullion? Should we move money overseas, should we just stock up on food, water and hope for the best?
In this article we discuss the current financial situation and ways many people can plan to make it through the next couple of years. It’s a pretty scary time to be alive but also a very exciting one. The financial situation has been set up to benefit those very wealthy individuals and large corporations. While the billionaire bankers get richer, the rest of us get poorer. The collapse of the financial system will hopefully lead to a more fairer structure. The sad thing is that most people do not know what is coming their way. Their life savings are in jeopardy of devaluation. If you are wondering what devaluation is, it is when a currency loses it’s value. We explain how and why this is happening in the United States.
United States has been the super power of the world. The U.S. dollar has been the currency that other nations trade with. When they want oil or wish to trade with other countries for the goods, they use the U.S. currency. This has kept the United States dollar as the leading currency and has bolstered it’s value. For instance, compared to the Chinese currency, The U.S. dollar is worth much more. That is why the U.S. has enjoyed using the Asian labor force to produce goods at much lower costs then domestically. What happens when the dollar all of a sudden falls out of favor. Many Americans are unaware that this is currently occurring in the U.S. During 2008, Bernanke issued a bankers bailout of seventeen trillion dollars. What this did was to lower the value of the currency. The more currency you print, the less the paper currency is worth. This will cause gold price for bullion coins to rise. The Asian countries that trade in the U.S. dollar have become very worried about the possibility of a currency collapse so they are rejecting the trading of the dollar. Instead they are trading in Chinese yuan.
In addition, the Chinese have been the biggest purchasers of U.S. dollars and are currently not purchasing hardly any treasury bills. This means that in order to pay the U.S. debt, the Federal Reserve is purchasing it’s own Treasuries and therefore going to print more and more money. This is very detrimental to a currency value. This could cause a massive evacuation of the dollar leaving the value at zero. This is scary for Americans as they will lose their entire life savings.
So what can one do to protect themselves? According to the World Gold Council, they could purchase precious metals. Throughout history gold and silver prices have stood the test of time. Over the past ten years gold and silver prices have outperformed the S&P by leaps and bounds. View gold price charts. View Silver prices charts.
Why is gold and silver a good hedge for a declining dollar?
1. Gold price charts show that as the value of a currency is debased, the price of gold and silver prices rises.
2. Gold and silver bullion is an asset and will never lose complete value unlike a currency.
3. Silver prices may rise due to a shortage in silver availability.
4. Silver is the highest conductor of electricity and is needed to make electrical appliances.
5. Gold and silver is used in making computers, solar panels, cell phones and has medical purposes.
What can people do to protect their assets during a currency crisis
1. Buy food and water to last several months if the grocery stores were to shut down.
2. Look to open bank accounts in other safe currency countries such as Canada.
3. Get a little junk silver coins. The silver prices are less expensive then the non-numismatics and can
be used for barter items if no one takes the currency.
4. Put a gallon of gas in safe keeping as when the currency collapses oil prices will rise through the roof. View oil prices.
Financial News Links:
Historical silver prices charts
Silver prices are forecast to move higher.
View historical gold price charts
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