These days, people are worried about the dollar. There are several reasons as to why the dollar is quickly becoming a toxic asset, even though it is our nation’s currency. Unfortunately, questionable banking policies on the part of the Federal Reserve have placed the US Dollar in the cross hairs of crisis. So, when the dollar fails, where can you turn? The answer is that you might want to buy silver.
The inherent advantage of buying precious metals to hedge your wealth is the fact that precious metals can freeze the value of your savings, while the current currency you hold begins to tank.
There are many reasons that would cause a currency to quickly devalue. For instance, in around the end of the Second World War, something very interesting happened to the German currency.
Hitler needed to keep financing his military, but he was running out of money. So, he borrowed a massive amount of German currency from their national bank. The national bank in turn flooded the German economy with more currency. By the end of the war, there was so much currency in the market that it almost completely devalued. In fact, it even got to the point where the people of Germany were actually burning their dollars in their furnaces because it was cheaper than buying logs.
As for the currency of the US, the Dollar has been held as the World Reserve Currency since World War II. As the US Federal Reserve Bank continues to flood the market with more and more currency, the value of the dollar is dropping.
While all these countries still hold the US Dollar in case their own currency tanks, they are looking to get out. In fact, there are lots of loud voices in the IMF that are calling for a New World Currency, which would mark the end of the Dollar, as we know it. When all these countries suddenly dump the dollar, a loaf of bread has the ability to go from $2.00 to $200.
When you can’t even trust the dollars in your own bank account, where can you turn for protection? Find detailed information on how to buy silver at http://www.fool.ca/2015/05/27/believe-in-solar-buy-silver-wheaton-corp/
The Advantages of Silver
Silver is one of the most liquid of all the precious metal assets. The beauty of this is the fact that when you buy silver, you don’t exactly tie up the value of your savings. It is very easy to sell and buy silver.
However, when there is an impending currency crisis, the value of silver increases, as it does not devalue with the dollar.
Also, silver can be bartered and traded based on its spot price. While a loaf of bread may skyrocket because of a currency crisis, the monetary value of silver will do that as well. If you have one $30 piece of silver bullion, and bread moves to 1000% of its original price, then silver will also go to $30,000. It literally provides a way for you to escape the problems of hyperinflation.