The U.S. Dollar Will Collapse in 24 Months
posted on
Dec 21, 2010 05:12PM
New Discovery Resulting in a 20KM Mineralized Gold Belt
Investors have been shuffling currencies around faster than a game of three-card Monte as the true value of world's paper money is being exposed.
But in the end, the only real winners would have walked away from the table long ago, their pockets stuffed with the only currency that really matters: gold.
The consequences of decades of abuse to the system of credit in the United States are coming to a head. And the gray clouds that loom over the skies of the dollar are growing bolder by the day and darker by the minute.
The cold hard fact is I expect the U.S. dollar to ultimately collapse within 24 short months.
This failure will likely push gold prices to over $5,000 an ounce. Meaning that, even at $1,400 an ounce, gold is still dirt cheap.
Every investor should own gold right now as the ultimate store of wealth that will protect hard work and savings.
As the world begins to learn the true nature of the world's funny money, masses of new buyers will come flooding into the gold market. And this surging demand will be the catalyst that launches the price of gold into the stratosphere.
It's pretty simple...
Most investors are unaware, but the gold market is incredibly small.
There have only been about 175,000 tonnes of gold ever mined. That means there is only 0.9 of an ounce of gold for every person on the planet.
That's why they call it precious! Simply owning a single ounce of gold puts you in a much higher global economic class.
When the oceans of fiat money suddenly try to take a part in the gold market, the law of supply and demand will fundamentally force prices much higher.
But don't put all your eggs in the gold basket
While the price of gold will soar and get most of the attention, it's silver that typically outperforms gold, dollar for dollar invested.
In certain instances when gold prices have doubled, the price of silver has outperformed gold by a factor of more than six-to-one!
The only problem with silver is that it's not as portable as gold.
You can hold $50,000 worth of gold with your two hands cupped in front of you. You could put that gold into your coat pockets and walk down the street without anybody knowing what you are carrying...
On the other hand, $50,000 worth of silver would take a hand truck to move.
Investors should also consider owning silver for the potential use to buy day-to-day items such as bread and prescriptions drugs, preparing for the time the government declares a “bank holiday” as the crisis in the banking sector exacerbates.
During a bank holiday, checks and credit cards will no longer be accepted as payment for goods and services.
For this reason, I also recommend keeping some cash on hand at all times. I'm not recommending stuffing the mattresses; but it's probably smart to keep a few thousand dollars in 1s, 5s, 10s and 20s around the house.
U.S. Silver Eagles would also be very useful in such an event, as they are considered legal tender in the United States and could be used to purchase groceries.
Why lose sleep?
Ownership of gold and silver will become one of the hottest investments on the planet.
The early adopters — those who wisely purchased their positions before the masses come — will sleep well at night while others fret as they watch the purchasing power of their savings evaporate like water in the Sahara.
Good Investing,
Greg McCoach
Editor, Wealth Daily
Investment Director, Mining Speculator and Insider Alert