Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (41026)	9/7/2005 12:09:54 PM
From: benwood	Respond to of 110194

Today, you can exchange dollars for about any currency on earth, probably all of them. You can also figure out how to exchange gold for any currency on earth. Diamonds, less so. Paintings, even less so (and with less certainty). If you happened to live in a country where the currency cratered but had gold, your ability to acquire a foreign currency (barring your gov't just stealing it from you) would remain largely intact. However, if you held the cratered currency only, your exchange and consequently your buying power would be severely deflated. Society doesn't have to collapse, just your local currency. When I look at our own country, I'd say we're in the realm of where other countries were when their currency collapsed, which is atypical historically but nevertheless does actually happen. I don't believe the dollar will crater in a vacuum, unless it happens 10 years out (unlikely). It will have repercussions around the globe. Because of that belief, I am far less certain of what will actually happen to the price of gold. I think it will fare better than currency (hence my core position in miners) but not necessarily go up, and perhaps even go down over time. But still better. I'm just looking for a better escape route.