We’re so f***ked!
This was the title of an article I wrote last week about the death of the dollar.
In that article, I made the argument that, thanks to the continued weaponization of the U.S. dollar, countries around the world are now conspiring to replace the U.S. dollar as the default medium of exchange with something else.
This plus the rapidly increasing trade and budget deficits, along with poorly planned trade wars, could be expediting the death of the dollar as we know it today.
If this thesis is sound, then certainly there’s a case to be made for gold.
It’s no secret that weakness in the dollar can push up gold prices, as during these times, investors seek out alternative investments that allow them to store value. Gold provides this very thing.
Certainly I’ve taken full advantage of the inverse relationship shared by the dollar and gold. And I’ve created significant wealth by doing this. That being said, I don’t buy for one second that gold is the savior so many goldbugs claim it is.
You Can’t Eat Gold!
Years ago, I spoke at a conference that was heavily attended by hardcore goldbugs.
In the expo hall, there were rows and rows of gold coin hustlers and precious metals snake salesmen, pleasantly surrounded by beautiful women who pose with plastic smiles because the pay is solid.
Most of the conference sessions were fear-based, warning of the ultimate economic collapse. And in all fairness, many of these folks had plenty of valid data points that supported their arguments. But where they all went wrong was with their solutions…
Buy Gold!
If you want to buy gold as a hedge against inflation or the destruction of the dollar, then go ahead. It’s a smart move. I actually encourage it.
But if you think gold is going to save you when the proverbial poop hits the fan, you’re going to be insanely disappointed.
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Why Do You Own Gold?
If there were to be a major economic collapse and the dollar lost most of its value, do you honestly think folks showing up to buy groceries with gold coins have any shot of being successful?
Most folks don’t even understand the value of gold or what to do with it if they get it.
In the presence of a destroyed dollar, people aren’t going to need a bag of gold coins; they’re going to need the ability to thrive and survive in such a situation.
Instead of investing in gold coins with the flawed expectation of being able to use those coins to live a normal life in the event of an economic meltdown, you should be investing in things that will legitimately keep you healthy, safe, and fed.
The way I see it, there are much better investments you can make than gold. Here are a few I’ve personally made:
- Healthy soil
- Seeds
- Firearms
- Proper tools
- The ability to grow food and procure meat protein
- The ability to generate your own electricity (I’m fond of solar and battery storage)
- The ability to travel without having to rely on petroleum (generating your own electricity with solar and then using the electricity to charge your electric vehicle is a smart move)
- A safe and long-term supply of clean water
- Video surveillance so you can monitor your property, as economic collapses breed theft
I don’t mean to sound like a fear monger or an overzealous prepper.
In fact, I don’t see such a major economic downturn happening anytime soon. At least not of these epic proportions.
Yes, the dollar is likely to continue to lose value as the rest of the world wakes up to the fact that the only way to combat the United States’ power position is to force the transition of the U.S. dollar to something else as it pertains to the default medium of exchange.
Make no mistake: This is going to happen, but it’s not going to happen overnight. It’ll take years before such a thing even registers. But it’s still enough to consider adding some gold to your portfolio.
I continue to personally benefit from my investments in gold, and you should, too. It just doesn’t make sense not to.
To a new way of life and a new generation of wealth…
Jeff Siegel
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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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