The Value of Money
It is no secret: the value of the dollar is declining, and has been doing so for a long time. In fact, most experts agree that the last time it was “up” was in the late 1970s. This has led to a climate of debt, inflation, and uncertainty, and some experts are even forecasting that hyperinflation or a collapse of the value of the dollar will happen within our lifetime.
The causes of the dollar’s decline are many: U.S. debt, the growth rate of other country markets, the end of the gold standard for currency, and more have all played a role. Not only would a collapse like this demolish the U.S economy, but also it would severely damage the global economy and our place in it, leading to a very long and difficult recovery. This leaves many wondering what to do to protect themselves and their families.
Why Invest in Metals?
It is not all doom and gloom, though. Americans from all walks of life have begun to invest in their security in preparation for a potential economic collapse. One thing is clear: in the event of a collapse, the dollar will be worthless, and precious metals will most likely take over. The important thing is to begin investing before a crisis hits.
Gold, unlike the dollar, has progressively gone up in value since the early 1970s. It is not affected by many of the same factors that our current currency is, and has been used as currency (in some way or another) around the world for thousands of years. This makes it a prime candidate for investment against an economic collapse.
In times of collapse, civilizations still require a way to barter and a currency to use. When the main currency becomes virtually worthless, then the original standard — accepted worldwide and always increasing — comes back into use. However, waiting until that time means the price of this precious metal has already skyrocketed. What you could buy for $100 today may cost $1000 or more, and likewise, what you pay $100 for today will be worth $1000. Investing not only ensures a higher return, but survival in crisis.
This has already been seen in recent U.S. history. In 1998, our currency saw a dramatic drop in value, and between then and 2008, the price of gold nearly tripled. This is because, when faced with the reality of a declining dollar, many people ran for the security of precious metals, creating a much higher demand than usual. In 2008, the dollar was again in danger, and again the prices of metals soared. When the value of paper currency is down and the Dow Jones is in the red, precious metal is actually strengthened.
Investing in gold, in fact, is not a new concept. In the U.S. alone, people and families have invested in the metal for generations, and pass on their wealth as inheritance. This means that some families have precious metals that was acquired for less than 1/5 of the current price, and again the numbers simply keep going up. This means that investing doesn’t just add security for you, but may add security for your children, grandchildren, and so on.
Diversity is The Smartest Road to Security
Of course, it is always advised that you diversify your investments and savings. If your main concern is purely for survival in an economic collapse, then many agree that you will want to have food, water, and other barter items on hand. The recommended amount of each of these items will vary from expert to expert, but it is generally agreed that gold should make up roughly 6% of your storage. The metal may be your best defense against inflation, but you will still need daily necessities. Therefore, many are simply buying it in small portions to be stored, while they concentrate most of their efforts on other supplies, like food.
Speaking on strictly financial terms, expert brokers and investors also agree that precious metals should make up a portion of your savings. Gold may be the best way to protect against inflation and hyperinflation, but most experts still agree that it should be a portion of a larger investment portfolio. This will allow you to thrive in the current economy, as well as buffer you and your family against a collapse in the future. Even if the collapse of the global economy does not happen in your lifetime, the value of gold will only increase. In any case, it is a win-win.