An excellent interview at the Monetary Metals site this week.
When I first began studying under Prof. Fekete in 2007, he made the point, insistently, that the US$ would be the last of the currencies to fail, not the first.
The gentlemen in the above video are making the exact same point.
As can be easily understood, gold will continue to perform its historical role as the store of stable value over time. In other words, something that will transfer wealth from here to wherever the heck the world ends up. So, in the long-term, the strategy of socking away gold (and/or silver) remains entirely valid.
There is a short-term weakness in that strategy though that must be recognised and responded to. The oncoming depression is going to hit the cash-flow of all of us – some worse than others.
Will you have to sell your gold for dollars just to survive? We are entering a period where the ongoing currency collapse will see governments, companies and individuals struggling to get hold of enough currencies to service their debts. Most debts are denominated in US$s. That demand for US$s will see the value of the US$ rise, and continue to rise for some time to come. Meanwhile, the value of all other currencies, as measured by US$s, will fall.
Everyone reading this has, I assume, a physical stash of the monetary metals. Now is the time to ensure that you can hold onto that stash. From here on out, I will not be adding to my metal, I will be saving in US$s. Literally going to the bank and, as often as I am able, swapping my Au$s for US$s. Then, down the line, if I need to strengthen my cash flow, I will be swapping the US$s back for Au$s.
It is my belief that I will generate more of the local currency doing this than by saving in gold.
It is annoying that this is so, but it is the reality of the strength of the US$ system.
The most salient points:
1 The US$ will fail, but it will be the last to fail, not the first.
2 All other currencies will fall in value against the US$ – most heavily.
3 Gold is unlikely to rise very much in US$s in the shorter term.