A contributor to the Rick's Picks forum disagreed—mainly, he said, because there is no precedent for so swift a collapse of a sovereign currency. Following is his argument, and after, our response.
"The idea that a hyperinflation would come and go in a few days or weeks has no precedent, and, as such I give it little credence. However, the question for those owning [precious metals] concerning what to 'transfer' one's 'profits' into, is very relevant. Furthermore, there is the issue of taxes on what could be, at least nominally, outsized profits. So, while leaving the question of what to buy momentarily behind, let me offer that arranging some sort of barter might be the way forward for [precious-metal] holders. . .here are some of the choices. . .that may be possible:
- Raw Land
- Developed Property—commercial and/or residential
- Precious gemstones
- Objects d'art
- 'Services' unspecified
- Other commodities
- Heavy equipment
- Businesses unspecified
When we try to guess how long it will take for the dollar to collapse, why should precedent matter? History almost never repeats itself in a way that can be easily predicted. There's always a twist, and in this case the speed of the collapse is exactly what we might expect to undo even those who profess to be "ready." Bear in mind that the dollar is already a fundamentally valueless IOU, not money, and it is therefore only mere perceptions that need change to make this so in practice. That could happen—globally—in the time it takes to air the evening news.