Which one is safe? Savings in foreign currencies or in gold?
Many questions come, about the safety of savings in foreign currencies especially the U.S. $
Most of the questions set out from the assumption that most people keep their money in U.S. $ as safe store of gold, I say no – these two things are very, very different.
My answer is based on the world gold price data I present in the graph above, the gold price charts in the U.S. $ since the beginning of the millennium January 2000. End of 2009, world gold prices closed at a price of U.S. $ 1,097.25 / Oz or have experienced 286% increase of gold prices in the early millennium.
Why gold prices continue to rise in the U.S. $ is a bad sign for the U.S. $?. Simple answer, the gold represents real objects that have kept the purchasing power of all time. One goat in the time of the Prophet for 1 dinar (4.25 grams of gold), one dinar still be able to buy goats also present. Entry-level family car can be purchased for 15 Oz in 1935; with the same amount of gold at this time we also can still buy a family car entry-level classes – new!.
This means is when compared to gold, U.S. $ continues to decline in purchasing power is very significant. The problem is this decrease not seems to stop, so until later how much lower the purchasing power of U.S. $ this? It was God only knows. What is clear based on the statistics of gold prices above the world since the beginning of the new millennium in January 2000, the value of U.S. $ 25% now live alone compared with its purchasing power at the beginning of the millennium.
Like on a plane that kept swooping down and the captain did not seem to master the controls, whether we will still wait until the plane touched the ground and shattered?. I certainly would choose not to wait, I would choose as the parachute jump there.
These parachutes can be made of gold; garden / farm, livestock, property productive, easy to merchandise sold etc. Parachute is not another paper currency, because if something happens to the U.S. $ – other paper currency will be sucked into the vortex of the crisis.
-You can choose your parachute in accordance with the interests and your ability to manage it. God willing you can survive the U.S. $ crashes that we do not know when but it was very clear direction … only God knows.
Other articles you need to read;
- Does the Euro exchange rate down drastically affect on the fall in gold prices?
- The Easiest Way to Understand and Manage The Investment Risk
- Which one is your investment choice, investment in shares or gold for the best?
- Where are the trends in gold prices towards the end of 2011?
- The World gold price booming proves the weakness of the global financial system
