The USD is the accepted global standard currency. Most of the money the Fed prints actually leaves the country and is held by foreign countries. This is part of the reason hyperinflation hasn't occurred on a scale equal to the Fed's currency printing. Once the USD is no longer trusted as a safe asset to hold, foreign countries will look elsewhere for a safe haven (precious metals, etc) and US currency will suddenly come flooding back into the US, and at that point the dam will break and hyperinflation will run wild.
If you have cash laying around, long term it's always better to hold gold or silver instead of cash. Cash loses value constantly, even in good times. Gold and silver's main function as an investment is as a hedge against inflation.
An ounce of gold will buy almost as many loaves of bread as it would 100 years ago. The buying power doesn't change much. By contrast, $1 worth of goods in 1922 costs $16.89 today.
Any cash you don't need for living, anything you consider "savings" would be better placed in precious metals.
But don't convert any funds you might need access to. The premiums when buying and selling will bite you.
Bottom line, if the US dollar start to tank, you want to be holding anything but cash.
What's the significance of Russia using gold? Is there any likelihood that the American dollar will become useless?
The USD is the accepted global standard currency. Most of the money the Fed prints actually leaves the country and is held by foreign countries. This is part of the reason hyperinflation hasn't occurred on a scale equal to the Fed's currency printing. Once the USD is no longer trusted as a safe asset to hold, foreign countries will look elsewhere for a safe haven (precious metals, etc) and US currency will suddenly come flooding back into the US, and at that point the dam will break and hyperinflation will run wild.
So what I'm asking is... am I supposed to turn my entire savings account into metal right now?
If you have cash laying around, long term it's always better to hold gold or silver instead of cash. Cash loses value constantly, even in good times. Gold and silver's main function as an investment is as a hedge against inflation. An ounce of gold will buy almost as many loaves of bread as it would 100 years ago. The buying power doesn't change much. By contrast, $1 worth of goods in 1922 costs $16.89 today.
Any cash you don't need for living, anything you consider "savings" would be better placed in precious metals. But don't convert any funds you might need access to. The premiums when buying and selling will bite you.
Bottom line, if the US dollar start to tank, you want to be holding anything but cash.
Thx
Once the system crashes what happens to gold price? Up or down? Impossible to know?