The Dollar Crisis and Coming Gold Boom

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...For now, the only conclusion I can draw from my brief examination of history is that unless a grand scheme is hatched to replace the U.S. dollar with another currency, great fortunes in gold and gold stocks are waiting on the horizon. Thus one should bunker down and get ready for the great gold boom.

There are at least four economic and stock market crises that Iíve studied extensively that mirror todayís global economic conditions. Only many things today make todayís situation in many aspects much worse than the conditions that triggered past crises. That is why I say crisis is inevitable and great wealth will be destroyed in global stock markets. However, great wealth can also be built during this time as well. You donít have to be a passive investor whose wealth will be destroyed...

Strong and continued inflation of a currency will always invoke a couple of reactions:

1. Wealth will be stored not in domestic currencies but in non-monetary assets or in a relatively strong foreign currency to maintain Purchasing Power Parity (PPP).

2. Monetary and trade transactions occur in a foreign stable currency, not the domestic currency.

Certainly condition (1) has been executed by Americans, at least among savvy investors, for many years now with the accumulation of foreign currencies as well as the accumulation of lots of gold, silver and real estate in emerging and developing countries. Condition (2), while not yet common, is starting to appear. Iíve seen U.S. based merchants online now demand Euros as the default currency of payment rather than the dollar.

...For now, the only conclusion I can draw from my brief examination of history is that unless a grand scheme is hatched to replace the U.S. dollar with another currency, great fortunes in gold and gold stocks are waiting on the horizon. Thus one should bunker down and get ready for the great gold boom.

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