What Currency is Safe?

[MooCow]

I hope this is not the case, but if the dollar completely collapses then is there a foreign currency that will be safe? Gold and silver are a good bet of coarse, but I wonder what is safe as far as paper currency. Any ideas?

[hf328]

I've been collecting gold, silver and precious gems. I figure they are tangible goods.

[MooCow]

I feel the same and that may be the only reliable thing in a crisis. I think that if this does happen and we all prepare right then we could come out like champions in the event of a collapse.

[hf328]

That was my thinking...plus a nicely fortified home with lots of security.

[hf328]

Very good point, but better something than nothing.

[TennesseeCherokee]

If the dollar were to collapse (and its not) there would be no currency that was "safe". Just take a look around the world right now and ask yourself what currency you would "park" all of your liquid assets in?.....kinda slim pickings huh?

Gold? Silver? Gems? Diamonds? The idea is quiet romantic ....but in a true economic collapse I am not sure how practical those hards assets would be. You gonna take your big gold dabloon down to the local store and buy a loaf of bread with it? How would they give you change? Who would determine the price of that gold at that point? Assets, tangibles, etc etc are never at some "permanent" price or value. It is worth only what you can buy with it at that given point. That being said, perhaps at that point....your Gold Coin that you bought to protect your monetary wealth is ONLY WORTH one loaf of bread because that is all you can buy with it...at least you got some bread and could avoid starvation for a while longer but that is getting into the realm of "Survival" and probably best left to another conversation.

The point is...if the US Monetary System were to collapse today, so would the world....thats why nobody is going to let the dollar "collapse".

We don't live in a world or a dimension where things are "safe"....nature itself is a random violent force....you and your kids can be murdered walking into pre-school ....or your dog can turn on you and eat your throat out while you watch TV....or a plane can crash through your house...etc etc etc

"Safe" is a word and/or state of mind that is only relevant at one particular point in space and time for one individual....like anything else...its all relative

....Could not have said it better myself..Thanks for maintaining reality !

[Tiffany23]

Agree that if the dollar collapsed..the world is hosed.

Saying that, in my advance portfolio course in my graduate studies, we learn that the Canadian dollar is based on a country that has abdundant natural resources...gold, timber, oil sands etc, currently if you invest in the Canadian dollar it has similar risk characteristics as those invested in a basket of commodities. That my

[MooCow]

You are right about taking a barrel of gold to the grocery store. It is just not possible or realistic. What I was thinking is being heavily invested into gold, silver, etc. and transfer money as needed into paper currency. As far as the other question of a paper currency, there is not one that I know of that will be safe. I was wondering if anyone knew of anything that may be safe. If you have your investments in gold then you can trade it in for what it is currently worth at the time you want to spend it. Lets say you have 1000 dollars today. Well that may buy a loaf of bread in the future. Right now you can buy a big screen TV with it. If you have a 1000 dollars in gold today then you could still exchange it for money to buy that big screen TV, but if the dollar did collapse then that 1000 dollars in current value gold is not going to be worth a loaf of bread. This of coarse is if the dollar collapses. Will it? Maybe. Won't it? Maybe. No one knows for 100% certainty. The best thing anyone can do is surround themselves with as much information possible and be prepared for anything. I'd rather be a military sniper out in the woods than a emo kid suddenly stuck in the woods.

[Slaydadea]

If the dollar were to collapse (and its not) there would be no currency that was "safe". Just take a look around the world right now and ask yourself what currency you would "park" all of your liquid assets in?.....kinda slim pickings huh?

Gold? Silver? Gems? Diamonds? The idea is quiet romantic ....but in a true economic collapse I am not sure how practical those hards assets would be. You gonna take your big gold dabloon down to the local store and buy a loaf of bread with it? How would they give you change? Who would determine the price of that gold at that point? Assets, tangibles, etc etc are never at some "permanent" price or value. It is worth only what you can buy with it at that given point. That being said, perhaps at that point....your Gold Coin that you bought to protect your monetary wealth is ONLY WORTH one loaf of bread because that is all you can buy with it...at least you got some bread and could avoid starvation for a while longer but that is getting into the realm of "Survival" and probably best left to another conversation.

The point is...if the US Monetary System were to collapse today, so would the world....thats why nobody is going to let the dollar "collapse".

We don't live in a world or a dimension where things are "safe"....nature itself is a random violent force....you and your kids can be murdered walking into pre-school ....or your dog can turn on you and eat your throat out while you watch TV....or a plane can crash through your house...etc etc etc

"Safe" is a word and/or state of mind that is only relevant at one particular point in space and time for one individual....like anything else...its all relative

Great job Slade! Green one from me! We're gonna survive this thing.

[TimS]

I agree....if US dollar goes, they all go However, I don't think that is scenerio you should consider first)......I believe it matters "where" you have your money, not how much you have. As we've seen in the last 10 years, some pretty big banks have failed because of poor loaning practices. If the dollar or Euro crashes, it would bring down the rest of the world currencies value with them, but they'd still be worth something.....as long as you had access to yours?

I'm thinking if the dinar RV's at a profitable rate for us, we should take a considerable amount of our profit in "cash" and keep it in a very secret and secure safe in our well guarded home. Who knows what our government has done to the future value of the dollar by printing endless new money based on nothing more than "confidence" in our government......I for one, don't have much confidence in our government and have not for quite some time.

Eventually the dollar and all other currencies will have to be backed by some tangible asset.....precious metals and other natural resources like oil or natural gas. But individual people won't be able to use gold and silver for much at first......it will take time for the governments of the world to "reset" the currency values or possibly even come up with a common currency. In any case, like what was said upstream, your gold will only be worth what some one is willing to take for it at first (when the dollar collapses). I think anyone with cash on hand will be the ones who have a leg up on the rest of the population that has thier money in a bank.....who knows what will happen to banks during a world wide currency devaluation? But my guess is they give some excuse why you can't access it.

JMO......I'm sure economists and conspiracy therorists can come up with details of such a calamity, but I say....keep a good supply of cash in a safe/protected place just in case.....

[Polecat85]

I hope this is not the case, but if the dollar completely collapses then is there a foreign currency that will be safe? Gold and silver are a good bet of coarse, but I wonder what is safe as far as paper currency. Any ideas?

Ammunition, you will be able to trade it for food.

[Econman33]

Bottled water, canned and dried foods. and 22LR shells. All the big game will be taken first.

[RNLA]

Tiffany 23,

Do you know if you can use Canadian currency in U.S. stores? If not, do most banks exchange it?

[Inspectdinar]

The only thing I know that is reltative safe is LAND. At least, you can grow food to eat!! JMO

[MooCow]

Tiffany 23,

Do you know if you can use Canadian currency in U.S. stores? If not, do most banks exchange it?

I am not sure about the canadian dollar, but I know some places on the east coast take euros...well I have heard at least.

[desimo]

I had someone point out to me that the Swiss Franc has been a stable currency throughout WW2 and other crisis times. I am planning on investing some in this currency.

[Slaydadea]

Search Fiat Currency. Fiats are not safe. My opinion. Would you advance me $1000.00 for a tomato crop that has not come in yet? I'll invest the money in high hopes of making a buck to boot. The crop fails, where's your money? Safe is a misnomer.

[Moto144]

One would not necessarily be looking to buy a loaf of bread with a gold coin (maybe a silver dime or bartering), the point in owning gold is to hedge against a dollar collapse. If you have $1Mil in the bank (or your mattress) and the dollar becomes worthless you have lost your entire fortune (whether it's the whole world going down or not, will one take comfort in knowing that the rest of the world is in the same boat? I think not). If you have at least 1/3 of your liquidity in gold/silver, when the dust settles you have not only preserved your fortune, but will most probably have increased it greatly (If there is no collapse, you can still buy currency with your gold). History tells us that gold has NEVER become worthless, throughout all the ages!

Farm Land, self sufficiency!! JMHO

[Tiffany23]

Tiffany 23,

Do you know if you can use Canadian currency in U.S. stores? If not, do most banks exchange it?

RNLA...I've spent a lot of my summers in Montana..and have traveled throughout other Northern states that border Canada...almost all of them accept Canadian dollars and especially coins...now more than ever, as they are the same or even worth more based on the daily currency flux. I've never had problems exchanging the two at the local banks.

However, if you plan on using it as an investiment, I'd recommend you go with a ETF, such as XSP and XIN...but there are several others. Easier transaction and safe storage being the main benefits.

Good Luck!

[MooCow]

One would not necessarily be looking to buy a loaf of bread with a gold coin (maybe a silver dime or bartering), the point in owning gold is to hedge against a dollar collapse. If you have $1Mil in the bank (or your mattress) and the dollar becomes worthless you have lost your entire fortune (whether it's the whole world going down or not, will one take comfort in knowing that the rest of the world is in the same boat? I think not). If you have at least 1/3 of your liquidity in gold/silver, when the dust settles you have not only preserved your fortune, but will most probably have increased it greatly (If there is no collapse, you can still buy currency with your gold). History tells us that gold has NEVER become worthless, throughout all the ages!

Farm Land, self sufficiency!! JMHO

Im with you!

[Slaydadea]

One would not necessarily be looking to buy a loaf of bread with a gold coin (maybe a silver dime or bartering), the point in owning gold is to hedge against a dollar collapse. If you have $1Mil in the bank (or your mattress) and the dollar becomes worthless you have lost your entire fortune (whether it's the whole world going down or not, will one take comfort in knowing that the rest of the world is in the same boat? I think not). If you have at least 1/3 of your liquidity in gold/silver, when the dust settles you have not only preserved your fortune, but will most probably have increased it greatly (If there is no collapse, you can still buy currency with your gold). History tells us that gold has NEVER become worthless, throughout all the ages!

Farm Land, self sufficiency!! JMHO

Good point. How much gold will it take to buy a tank full of fuel? Priceless.

[rjboots1]

If you're looking for currencies that should remain stable and be favorable to the USD in terms of exchange value, there are lots of them. Canada, Australia, New Zealand, and even the bad guys, China.

One thing to consider in case of a total collapse, so you never have to go to a store with an ounce of gold, is to buy some miscellaneous old silver coins to use for barter. More than likely, there won't be a "collapse", it will just be a continuation of the devaluation that's been happening for the last 100 years. And that devaluation will likely accelerate once the US credit rating is dropped as our debt issues become more severe.

The point is not to leave enormous amounts of cash sitting in USD. Keep your wealth in one of these other currencies, and keep a supply of USD on hand to cover a few months expenses. Then convert and replenish from time to time.

And you might want to keep in mind that gold purchases have to be registered with the government. And they once confiscated everyone's gold and made it illegal to own gold personally. For about 50 years! So don't put all your eggs in that basket either. Keep cash on deposit in another currency, and keep silver or some other industrial metal instead of gold, to reduce the risk of having the government steal it from you.

JMO! God bless us all as we shift our efforts from trying to earn money, to trying to keep and multiply money!

[Slaydadea]

Agreed, World economy's built on USD, subject to "Change" in a moments notice. Search "Hu" visits America.

[MooCow]

Thank you everyone for your input. It has helped a lot.

[au-oilfutures]

If you're looking for currencies that should remain stable and be favorable to the USD in terms of exchange value, there are lots of them. Canada, Australia, New Zealand, and even the bad guys, China.

One thing to consider in case of a total collapse, so you never have to go to a store with an ounce of gold, is to buy some miscellaneous old silver coins to use for barter. More than likely, there won't be a "collapse", it will just be a continuation of the devaluation that's been happening for the last 100 years. And that devaluation will likely accelerate once the US credit rating is dropped as our debt issues become more severe.

The point is not to leave enormous amounts of cash sitting in USD. Keep your wealth in one of these other currencies, and keep a supply of USD on hand to cover a few months expenses. Then convert and replenish from time to time.

And you might want to keep in mind that gold purchases have to be registered with the government. And they once confiscated everyone's gold and made it illegal to own gold personally. For about 50 years! So don't put all your eggs in that basket either. Keep cash on deposit in another currency, and keep silver or some other industrial metal instead of gold, to reduce the risk of having the government steal it from you.

JMO! God bless us all as we shift our efforts from trying to earn money, to trying to keep and multiply money!

Well said; and to add to the list, I would include both the Japanese Yen and the Swiss Franc. And of course, exchange when the USD is strong to them, which it is not at the moment, although, if the Euro keeps being run up, the USD will keep getting weaker, in which case you're too late.