Well, I've read a number of books and articles on this topic, and I've done a bunch of research. The reason I haven't transferred 40% of my money into Gold and Silver is because it isn't necessary. Generally, you only need to convert 10% of your money into Gold and Silver. The old Wall Street saying of "put 10% of your money in Gold, and hope it doesn't work" is very true. You shouldn't put all your eggs in one basket. You should diversify your portfolio. Generally, more than 10% of silver/gold is too much of a good thing, so I have 15%, and because of the economy and war, I will probably go up to 20%. Suffice it to say that every book or research I've done suggests 10% and about 20% during an economic crisis or war. Actually, I just did my calculations, and I've converted a little under 15% of my money into precious metals. I will probably bump it up to 20% in the next three months, just to be on the safe side. Also, it is important to remember that silver is just as valuable as gold. You really want to have both. During an economic collapse, silver is your checking account, and gold will be your savings account. It is said that one silver coin can purchase enough food to feed your family for a week during a collapse. Gold can be used for large purchases. The basic idea behind buying gold and silver is that it protects your paper money, because it is a store of value. You only need to do about 10 to 20% because that is how powerful Gold and Silver is. It is so powerful that you don't need to convert 40%. You could think of doing 40% as "overkill." To avoid the fate of the lady in the photo in my previous post, if your money is in gold and silver if the economy collapses, the value of your gold and silver will increase to the original amount that you originally had in cash. This is called the Parabolic Plateau, or the "Seesaw Effect." At the rate your paper money goes down, precious metals will go up. For example. If you have $100,000 dollars in cash, and you convert 15% into Gold/Silver, you will need to pull out $15,000 and buy Gold/Silver. As the $85,000 in paper money loses its value to the point its worthless, your $15,000 in gold and silver will increase in value and become worth $100,000 in gold and silver. In other words, your wealth is protected, and once the government corrects the depression, and introduces a new currency, you can convert some of your gold and silver back into the new currency, keeping 15% in Gold and Silver, once again.
You are just thinking about your income.....You should also think the effects on the of the whole country Its is just simple thing Every country has Exports as well as Imports You need to find the difference between exports and imports if the net is negative then definitely devaluation is goin to be thr!! otherwise they are going to suffer with huge losses
There is nothing I can do about the country. If Americans don't want to buy gold and silver, thats their problem. Statistically, 90% of them won't have it when the market crashes, and they will be standing in long soup lines. I'm only one man, and the most I can do is warn people, which I've been doing in this forum, and with my friends, family, and people I know. Also, income isn't important in this situation. Your wealth is what matters. You can either protect it by investing in a store of value, or you can watch you hard earned savings get wiped out by the government. The decision is yours. If the economy crashes, a lot of people are going to be out of a job. At that point, it doesn't matter how high your income is. What matters is your wealth, whether you have foods that can be stored, along with guns.
I am finding 40.63 INR http://www.x-rates.com/d/USD/table.html I guess that 40.63 is the commercial rate
There is one thing that scares me about dollar devaluation. If the dollar continues to fall, wouldn't virtually all the online businesses be wiped out? I mean, if the dollar continues to lose value, what will I pay my employees in? How can online businesses function if their is a dollar collapse? I know how to protect my own savings yes, but how can I continue running my business or accepting payments for work if I don't know what currency to use?
No body in this world cansay that the great british pound does not OWN the world! £££! £££! i think we should all work in pounds on dp £1=$0.50
It is nearly impossible for the dollar to fall until it's prctically worthless today. Imagine being able to purchase American products next to nothing. What's going to happen?
It may be a slow fall, but everyone agrees that the dollar is being devalued. One thing that is certain is that if you don't invest some of your money in a store of value, over time, your savings and wealth will be evaporated. Also, if the U.S. government become bankrupt, and begins printing money to pay its bills, that would lead to hyperinflation, and the dollar would essentially become worthless, because of the quantity they will have to print.
For what its worth, I hope you're right, and the dollar doesn't collapse, but it falls low enough to where the price of silver and gold shoots through the roof. That means anyone who has it will make a fabulous return on their investment. In addition to this, the online economy wouldn't be too hurt.
I doubt the dollar will totally collapse, but there will definitely be a drop, as the real numbers from the housing market are announced (It's much worse than currently posted). Already here in California we're seeing the domino effects of lost jobs in the support market of real estate such as appraisers, landscapers, movers, etc.. Once that moves forward, a recession usually follows. I agree some investment in gold can be good, however with the remaining money why not use it to your advantage? With the dollar low, we can sell our services more easily to our EU friends. Concentrate on marketing money-saving ideas, rebuilding credit, etc towards Americans. In every recession there were people doing better because of it, focus on that. Don't fall prey to the typical fear people pass around.
There is no sign of hyperinflation. Check the CPI figures. We are heading into a recession soon, and that will further discourage inflation. A lot of the existing gold today is held by the central banks of the world, and if the US is ever in danger of going "bankrupt," the Fed would be forced to liquidate its gold holding. That will crush the gold investors. If you think that the US is going "bankrupt," gold is the last commodity you'd want to be invested in. ...and FYI, inflation is not defined as the increase in the money supply; it is defined as the increase in the average prices of goods. Increase in the money supply can trigger demand-pull inflation, but we're facing a different scenario here. Government spending is part of what makes up the GDP, which is directly related with inflation, but it is very different from consumer spending. The dollar is becoming weak because of the trade imbalances and not necessarily because of the overflow of the dollar. It is possible for the dollar to remain relatively strong even with a large budget deficit.
Its possible that the US goverments starts to print money in response to the housing bubble. The housing bubble actually brought a lot of dollars back to the US. A housing crash would actually help the dollars as a lot of foreigners would be left with an empty bag.
How about putting money in like the Euro or Renminbi? I'm paid in $US and I have to make more and more just to keep an average!
How to get Renminbi outside the People's Republic? And a cheap dollar is not very nice for companies in e.g. EU. The big players are insured against this, but the small and medium businesses suffer. But a cheap dollar is nice when you are a tourist. Bad, that the USA was voted for the most unfriendly country to travel to. Even ahead of France.
If I may revive this thread, here we are, July 2008 and things aren't looking good. USD is even lower, and people are talking about hyperinflation! Meanwhile US banks are beginning to close down: http://www.allheadlinenews.com/articles/7011580966 I also largely depend on USD for my small online business and am thinking about ways to somehow escape this huge depression of the dollar. One idea is to start accepting euros, but then most ad agencies are still fixed on USD and US based customers may suddenly find advertising prices to be too high as the dollar keeps falling relative to euro. So it's a bit of an unpleasant dilemma. If you are living outside of US and are converting US to your own currency, what are you doing about devaluation? Also.. how popular is silver among advertisers in general as a currency? Maybe I could start charging grams of silver instead of dollars via Pecunix or something. These are sad times, tumbling times indeed. :S