I was watching a documentary last night that scared the sh*t out of me. It said the U.S government is seriously in debt, and its borrowing money just to the pay the interest on the money it has already borrowed. What REALLY scared me is the fact that the U.S. dollar can become worthless in value. My research shows this happened in Germany and many countries in South America. Here is my question: Do you guys think I should take my nest egg, convert 80 to 90% into Gold and Silver, and leave a small amount in the bank for daily transactions, protecting myself from hyperinflation and the sudden collapse of the U.S. dollar. Would you do it? Have you already done it? Any good advice is welcome. I'm thinking of taking my money out of the bank and storing it in a vault of safe
I think there are more dynamic and profitable ways of having your money work for you. Land and property abroad, or at home being one. Speak to you bank etc. DD
Thats just the problem.........I didn't see it on the news, I saw it on the Internet. This may bring into question the validity of the information presented in the film, but after reading wikipedia, and doing research from the U.S. government, we are indeed seriously in debt. Billions are being spent on wars, and I hear the U.S. is well over a trillion dollars in debt. The U.S. dollar may be the worlds "reserve currency" but if countries like China see the dollar as suddenly being worthless, they will dump it. Then what? I don't doubt that owning land or a home abroad is valuable. However, this does not stop your nest egg in the bank from becoming worthless if the U.S. government becomes bankrupt, and the value of the dollar drop Lol, trust me, I worked at a bank, and their financial advice is garbage. They only have the best interest of the bank, not the customers, in mind. Most of the underground financial strategies I've learned didn't come from a bank. When I worked at the bank, the only thing they were trying to do is put their customers in debt. The banking system in the U.S. is fractional reserve, meaning they loan out more than they have stored in reserved. What this means is simple: If there is hyperinflation, or an economic crisis, there will be a run on the bank, and the bank will not be able to give the customers back their money, since they loaned out most of it.
wow, you're quite knowledgeable about economics and finance. And I have to agree with you..at least partially, on the dangers of the Dollar becoming worthless. Especially with the rise of the more multilateral Euro, and as you mentioned, the vast debt that the US government is running itself into....make matters more complicated...and Bush's strategy of waging war on small countries is making it worse.
Forbes magazine had a columnist named Ashby Bladen predicting these sorts of things. His book was How to Cope With the Developing Financial Crisis (ISBN: 0070055491)Ashby Bladen 1981 You can buy the book used for $1 and he quit writing when none of his dire predictions came true. That was almost 30 years ago
I think silver is a better investment than gold but I wouldn't stick 80% into either, maybe 30%. If you do buy gold and/or silver don't buy large bars as if there is ever a disaster and the dollar collapses you will be using the gold/silver for transactions and you won't be getting change. Gold and silver have extremely large fees associated with purchasing which you lose when selling so either find a great deal and buy lots of it at once or the other option is buying silver coins in bulk. Pre 1967 Canadian silver coins are a great investment.
This has been "preached" for eons and it hasn't happened yet. Truth be told, the US Dollar will remain the strongest currency in the world until the terrorists topple the US some day...which will happen...not all at once, but slowly our country will continue to decline. If you are a student of history, you can see all the signs are there. We have, for some time, been in the period which will someday be known as...the beginning of the fall of the western civilization. I am sure the History Channel will bear me out in about 100-200 years. Jim
woww man, you seem to be a Nostradamus follower....I read his prophecies on the 3rd world war and the downfall of the western civilization...sounded quite...amazing!
You want a good response. Here it is. Don't worry about it. Reason: The Euro is currently better then the U.S. dollar because they all grouped together. ( a few euro countries) Which of course made there dollar have more buying power. But now the U.S. Is going to be grouping with Canada as well as Mexico then our dollar will be called the AMERO. And will be worth more then everyone's again
I have no idea but I remember when one of the Hunt Brother's tried to corner the silver market. I think the price price of silver dropped significantly during that period. Guess the moral is don't put all eggs in one basket.
In 1979 they caused to price of silver to go from about $3.00/ounce to $54.00/ounce while gold went to almost $1,000.00. After the sell off silver and gold returned to their normal levels and regulations have been put in place to keep it from happening again.
yeahh, same is the case with the stock market. Thats why we have mutual funds...to diversify investments.. maybe the thread starter can diversify investments into gold, silver, land, stocks and finally cash!!
It happened in Germany, hyperinflation made the value of their currency go down, and prices up. It's unlikely though, instead of gold - I'd buy a small home and let it out, that way your earning at the same time.
he he smart! the closest country to u so not much travel expenses.. but I guess Canadian economy will be hit as hard if Dollar slides badly
You can always invest using Euro as a currency. However you will lose when you convert from US Dollar to Euro.
nah...just like to read history...and, I find it amazing the "cycles" and "patterns" that jump out....