Investing In Gold And Silver For Capital Preservation And Appreciation

The Dollar Is On A Free Fall

Given that the value of the US dollar is decreasing against other currencies, it has become unavoidable for the creditors of the immense US debt and the investors in dollars to find some alternative assets. China for one, the most important foreign creditor, with its multi-billion worth US governmental bonds bought by now, should surely think of other type of holdings, sooner the better.


Given that the value of the US dollar is decreasing against other currencies, it has become unavoidable for the creditors of the immense US debt and the investors in dollars to find some alternative assets. China for one, the most important foreign creditor, with its multi-billion worth US governmental bonds bought by now, should surely think of other type of holdings, sooner the better.

Creditors and investors’ psychology is relatively simple and predictable: when inflation and deflation are present or close by, they look for other assets, whether they are currencies, bonds or hard assets, preferably the last, given the global financial crisis. It is a fact that the way down of the dollar has gone in parallel with the way up of hard assets, such as gold and silver. Therefore, it is likely they are to be the next preferred assets, to fill more and more of investors’ portfolios or creditors’ holdings.

On the other hand, even the scenario of their becoming again standard currency is not impossible, given that in Utah, for example, they already serve for buying goods and services. In retrospective, the gold standard seems to have been a good idea, preventing countries to print too much money, provoke inflation and then proceed forcibly to devaluation.

The main problem is that the weakening of the dollar will have an adverse impact not only on the USA and its creditors, but also on all the countries that use dollars for international trade or their foreign reserves. And these are by no means a few, given that the dollar has been the world trade currency and the world reserve currency since WWII. Even if central banks, in an attempt to defend national currencies, started to buy gold substantially a long time ago, the impact on the global financial system is unavoidable.

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 traditional gold kilo gold bar provides all the extraordinary investment benefits of bullion.

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