Hey guys. Newbie here. And I was wondering what other people thought about if the US Dollar was to collapse. What would that do to the value of physical silver? How would it be categorized in its worth? Thank you.
So, silver bullion would have no value whatsoever? Investing in silver and gold to protect you from economic crisis is a hoax?
That's like making worrying about dying of cancer or a meteor knocking the planet off of its axis your top priority in your life. It might happen, but there's an infinite number of other things (all of which will play hell with silver spot) that'll likely happen first. Just a little while ago, some hacker put out fraudulent word of explosions at the White House and the stock market crapped its pants before the report could even be verified as truth or fiction. If you want to worry about something, worry about something more probable like that. Nonetheless, you've now opened the gates of hell and now the winds of the inferno will now rage. Have at it, gang!
Seeing as the USD is the number one perceived safe haven, when it eventually collapses many people with their many billions of dollars will seek to park their money elsewhere. One of these places will be silver and seeing how small the silver market is means that even if a tiny percentage of people fleeing the US dollar park their money in precious metals it will send the prices of these assets to da moon And the USD dollar will loose their world reserve currency statues eventually, they are printing too much money to maintain its status of the worlds reserve currency. Countries are moving away from the USD right now, the BRIC nations for example as well as China and Australia.
There is a fundamental difference between price and value. If the USD collapses towards zero then the price of everything measured in USD will rise towards infinity. Stackers hope that in this scenario purchasing power will be preserved in silver and gold (and other tradeable assets). That is, that gold and silver operate as a store of wealth and maintain a value relative to other items that are desired. However, it should be noted that because next to no one has a stack of Gold and Silver, the utility and usefulness of the precious metals immediately following such a collapse is questionable. If it was a sudden event, most likely there would be a period of chaos in which flashing around precious metals to desperate people may be more of a liability than a benefit. It could be that your gold and silver will get you killed or not be worth very much compared to items of necessity like food. So, precious metals will be useful, but in the event of a currency collapse, there will likely be a period of chaos that you will need to ride out before they become valuable items of trade. Edit: Of course, that's if there is a dis-orderly collapse of the currency. It could be that someone [insert Global Power or Bank of choice] suddenly steps forward on the USD collapse, buys up the world governments and air-lifts a gold back currency into countries they take control of and the transition will be but a bump in the road. In which case, your precious metals will operate as a raft, transporting your wealth between the shore of the USD and the shore of the next currency, while everyone else becomes destitute. This scenario is unlikely though I reckon. Much more likely is that before the USD collapse, the leaders of the USA will take action to initiate a global war, leveraging their one great strategic asset, the US Military, against every nation that has any wealth that might challenge them. For if the USA is broke and have no gold reserves left, as is widely believed, then they must use what ever strategic advantage they have, the only one being their military. Unfortunately for the USA, the longer they do not use their military in this situation, the less viable it becomes as a strategic asset because the less resources they have available to maintain it. This is predictable and is why all the "opposing" powers are bending over backwards to avoid antagonising them and allowing all manner of transgressions to go without retaliation. Eventually, along with its wealth, the tiger will lose its teeth. But, that's just my perspective.
I suspect the big players have vast amounts of money and the bloody minded attittude to destroy the price of precious metals and sweep up as much physical as they possibly can for themselves. We are like minnows in a tank of sharks. Strong hands folks strong hands....
