The Failure Of The Dollar

The US dollar has been shaking for a long time, but now it is losing ground against any other major currency, so it may be time for the creditors of the immense American debt and for investors in dollars for that matter to look elsewhere for reliable holdings and assets. China, the most impressive creditor, with its multi-billion worth American treasuries amassed so far, should definitely offset them with some other holdings, indifferent to the fate of the dollar, which seems to be doomed.

As a rule, creditors and investors are the first to feel fatal inflation and deflation and to direct their finances towards other assets, be they currencies, bonds or hard assets. Without doubt, the dollar depreciation has been constantly accompanied by increasing gold and silver rates, so it is to be expected that these replace the dollar as favorite assets, not only as regards the diversification of some portfolios, but also as regards the core of those portfolios.

On the other hand, it’s by no means impossible to see these precious metals playing again the role of currency, in Utah for one they being already employed for purchasing goods and services. Seeing what has happened to the dollar, one can appreciate again the gold standard, making impossible for governments to print money and therefore provoke inflation to their liking.

Besides, the tragic fate of the dollar has an impact not only on the USA and its foreign creditors but also on all the countries that hold foreign reserves in dollars or simply have trading relations in this currency. After all, in the aftermath of WWII, the US dollar has become the global trade currency and the global reserve currency; therefore, its collapse may have incredible financial implications at a global level. It’s true that central banks, sensing the trouble, has bought plenty of gold to prepare for the switch, but the entire global financial system may be affected.

Things are a bit simpler for you, as a retail investor, just taking care of your savings. This is not going to dispel your legitimate fears that the dollar weakening may come with a sequel, in the weakening and failure of other currencies and, of course, of bank assets expressed in them. But you can replace your assets or get new ones in the traditional form of kilo gold bars, which are tangible, do not depend on fiscal policies and are ever lasting. Given that gold rates are constantly increasing, you, surely, have nothing to fear or risk, being even able to make some profit, were you to decide to trade them.

This common gold kilo gold bar ensures all the substantial investment benefits inherent to bullion.

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