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This week, we’ve examined three powerful forces now arrayed against the U.S. dollar …
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President Obama and Fed Chief Bernanke are not only refusing to defend the dollar, they are intentionally causing its demise with out-of-control spending and money-printing. Their motives are clear: Gutting the greenback’s value is the ONLY way they can ever hope to service our massive debt.
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Foreign governments, central banks, financial institutions and investors are slashing their dollar investments. In some cases, they are dumping dollars to insulate themselves from the greenback’s head-long plunge. And by doing so, they’re causing the dollar’s decline to accelerate.
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The United Nations and the G-7 plus China, France, India, Russia, Brazil and others are already laying plans to replace the U.S. dollar as the world’s reserve currency — and by doing so, will crush what little international demand remains for the greenback and send it into its death spiral.
These are not mere “predictions.” As we’ve seen in my emails to you this week, each of these assaults on the U.S. dollar is happening right now. And as a result, the dollar’s value — the value of YOUR dollars — has plunged more than 14% in the last 6 months.
Worse: Each of these assaults on the U.S. dollar is still in its early stages! As they continue to hammer the greenback in the months ahead, the dollar’s decline can only accelerate wildly.
The fourth horseman of the dollar apocalypse
Now, a FOURTH, and even more disturbing anti-dollar movement is quietly brewing in Washington, New York, London, Paris, Berlin, Moscow, Shanghai, Tokyo and many other financial capitals worldwide.
Unlike the other assaults on the dollar we’ve examined, this “ultimate debt solution” is NOT yet in place. The world leaders and central bankers who discuss it now speak only in whispers; behind closed doors.
But for reasons I give below, I’m convinced that world leaders now have no choice but to implement this solution — and that it will soon explode into the headlines.
If I’m right, it will spell SUDDEN DEATH for the U.S. dollar — and an instant, explosive implosion in the buying power of your money.
When this solution is unveiled, it will be too late for you to shield yourself. The trap will have been sprung. You will simply awake one morning to discover that your money buys only a fraction of what it did 24 hours earlier.
My mission is to help make sure that you are NOT surprised … that you have ample time to protect your savings, investments and retirement … and that you also have what you need to continue growing your wealth — even as this ultimate debt solution robs others of everything they’ve ever earned.
The ULTIMATE global debt solution
It’s no secret that the U.S. credit crisis spread like wildfire around the globe — or that nearly every government on Earth has amassed enormous new debts in an effort to spend its way out of this crisis.
Put simply, the U.S. government is NOT alone. Many governments around the world are now drowning in debt — and they’re desperately searching for the “magic solution” that will keep that debt from crushing their economies.
And like President Obama and Fed Chief Bernanke, they fear that the only way they’ll ever be able to service their debt — let alone repay it — is to do so with cheaper money.
The only way for that to happen would be for the G-20 — the world’s largest economies — to agree to a new monetary order, much like they did 65 years ago by signing the Bretton Woods agreements in 1944.
Even while World War II continued to rage, Allied leaders met in Bretton Woods, New Hampshire. Their mission: To stabilize wildly fluctuating currency exchange rates. Their solution: Create a new world monetary order that pegged global currencies to the price of gold.
This time around, global leaders are faced with a different problem: Massive debts that none of them can ever repay. But the solution will seem eerily familiar — and like the Bretton Woods agreements, it involves the price of gold.
To instantly slash the value all of their currencies at once, world leaders simply need to raise the price of gold. For instance:
The G-20 could instantly and automatically slash the dollar’s value by HALF simply by setting the price of gold at $2,000 per ounce.
TO YOU, that would mean food, energy and everything else you pay for every month would instantly DOUBLE in price.
BUT FOR THEM, it would mean that the cost of servicing or repaying their national debts would be cut by half.
Will the G-20 slash the buying power of money by doubling the price of gold? Maybe. Maybe they’ll raise gold prices less; maybe more. If anyone tells you he knows, he’s pulling your leg.
But one thing seems clear to me: With the entire developed world now drowning in a sea of unpayable and in some cases, unserviceable debt, resetting the price of gold is the ONLY way out.
In fact, the process has already begun with the explicit calls you’ve been hearing in the press from heads of state for “a new financial architecture” … “a new Bretton Woods” … “new financial regulatory structures.”
How soon is it likely to happen? Again — nobody knows for sure. It may be a few months from now or even a couple of years in the future. But I have absolutely no doubt that it WILL happen.
Money — the U.S. dollar and every other major paper currency — will soon be gutted of its value by decree. There is simply no other way out.
We’re here to help you protect yourself and profit
I am deeply concerned that you do not have the information and recommendations you need to insulate yourself and your family from this great global war on the value of your money and on your financial security.
In fact, our team is already planning a special briefing to give you everything you need to weather this storm — but we need your help:
Just click this link and leave a comment and tell me what we should include in this briefing to help you prepare.
Ask anything you like and we’ll do our best to get you the answers you need to shield your wealth.
Best wishes,
Larry
Related Posts
- Heads up: U.S. Dollar Sinks to New 12-Month Lows! (09/16/09)
- Dollar sinking; gold soaring! (09/23/09)
- Free Online Seminar to Survive Dollar Crisis (09/22/09)
- Dollar headed for collapse? (09/17/09)
{ 1535 comments… read them below or add one }
In accordance with your previous mail, about 10% of my portfolio is in gold, a little bit in silver. Should I increase that percentage and how much. The balance of my portfolio is in commodities - and about 50% is in US Treasuries - what should I do!?
Larry Edelson Reply:
November 17th, 2009 at 3:08 pm
Sorry, I can’t give personal advice. Refer to Real Wealth Report for my suggested allocations and more!
Larry, for those of us who have followed your recommendations in having 25 % of our assets in Gold and Gold related stocks, with the rise in the value of these holdings now over 25 %. Should we take profits and place into other assets, or sell bullion or gold stocks to buy mining shares which will have more leverage and profit that Gold itself.
Thanks
Larry Edelson Reply:
December 21st, 2009 at 10:59 am
Hold!
I am one that has lost monnnnnney this past year. What I really like to know is why Americans stand by and let this happen in the first place?Do we not have the rights to rid our country that is bringing us down in the first place. also why is our president not in his oval office like all presidents before him?He is not in this country as much as he is out side our country?
Is this helping us or is it helping someone else?
How and why did all at once we started sending our factories overseas and give them our workers nothing? he gave our money to big corporations to move overseas?
the question is WHY and how do we top this from happening?
Thank You GOD BLESS AMERICA
Larry Edelson Reply:
January 12th, 2010 at 2:20 pm
It didn’t start recently, nor all at once. It’s been a gradual decline that, unfortunately, is picking up momentum. The best course of action is to let the free markets prevail. That may take time, but it’s the best solution. Interfering in the markets at this point in time will cause even more problems.
is there any other possible solutions to this, and why is gold the answer when we are now longer a gold based economy?
What is your recommendation and strategy?
roger
Given past history, what goes around, comes around … just because you’re in and asylum (present usa) doesn’t make you stupid. What happens to real estate holdings … stagflation, and no sales possible? How much of one’s assets should be in gold?
what about those of us who have followed Weiss’ advice to keep the bulk of our funds in TREASURY MONEY MARKET FUNDS as a SAFE HAVEN? WHAT NOW???
Do you still recommend TREASURY MONEY MARKET FUNDS as a SAFE HAVEN?
Dear Larry,
As a homeowner I am concerned that the value of my home could soon be worth less than the mortgage I have been paying consistently. What can I do to insure that should we have a devaluation of the dollar that I can protect myself. I live 600 yards from the beach in Carlsbad, california and our home values have dropped by about 25% but still remain higher than the county wide average. Are there ETF’s that I can purchase to protect the value to the downside or am I out of luck.
We have been purchasing energy stocks in Canada and have done quite well them and a gold backed CD from Everbank - is there anything else that we should or could be doing?
Thank you.
Wouldn’t a solution to save dollar value be to follow suit with the goverment and buy depressed real estate? Your debt would also be cut in half. Then after the smoke cleared you could sell and pocket the equity.
Specific recos for a $100,000 portfolio with proportional asset sizing of ETFs and Mutual Funds to hold. Fred Wiedemann
Larry,
Two things,
First, all of my savings is in a Gov 457 plan that lets me utilize Schwab. What should I do to protect that.
Second, I will be eligible to retire on 02-01-2012, age 51 with 64% of base or if I wait until 02-01-2013, age 52 with 69% of base. The pension I am refering to is the Arizona State Retirement System. I have always intended to wait. If what some (you) are saying is true, my pension could be worth half or worse. I have several Annuity Options and only a partial lump sum of up to 36 months of my caculated strait life annuity. Should I wait until after the dollar demise and hope for a raise in pay to compensate the difference before I retire? My pension is based on the average of my highest 36 consecutive months of contributions within the last 120 months of credited service. I would recieve an additional 2.3% for every addtional year I work. I want to retire and move on to other work…take the retirement and run so to speak. Now I don’t know what to do.
John
Hi,
I just had some thought about preparing for the dollar decline. As you know, most 401K’s don’t offer a lot of options to choose, but we have switched into the following in our: 50% Money Market Fund and 50% Vanguard Inflation-Protected Fund (VIPSX); also 20% is being left in company stock (Xcel Energy (XEL)). Could you give your opinion on this? Thanks. D. Dunn
Larry,
Clearly, we are getting closer to repricing gold everyday. If the Cycles Research is about timing, what do they say? The “when” means a lot more than usual for this event. Thanks for your continuing to present the info!
Hi Larry, I have 40s% of my retirement Funds in gold ,oil,DBA, and Swiss frank,and the rest in a money market fund. I was afraid to invest in dividend stocks figuring I would lose principle on the next down leg that you have mentioned. Since I am retired ,I feel in limbo, no mater what I do Im in trouble.What way to go? Thanks
If gold purchases are the way to weather the coming storm…..how about silver? Need more info on the best way to purchase these commodities, ie. leveraged purchases, non-leveraged purchases, mining stocks, or (?). Are there certain “safe” currencies to trade the greenback for?
If gold is going to explode in price it would seem that all commodities would be a good bet, or not?
Safety would seem to be on everyones mind when it comes to abandoning (trading dollars for ?) their trusted money for other instruments of survival. Any recommendations? Lee
I have 20% of my portfolio in gold and silver, 27% in investment real estate, 5.8% in stocks and the balance in cash. What can I do to protect the value of my dollar (cash)?
The foundation alliance recommended buying (UUP) powershares US dollar index bullish. This is contrary to what you are saying in this article. Please explain. Thanks
Please give us specifics on where to put our money - generalities will not help. I hope this does not happen but would like to be prepared if it does.
It seems to me that James Turk’s GoldMoney offers the best approach to safety of storage and liquidity while protecting against the fall of the dollar. What do you see as the risks of using an allocation of 70% GoldMoney and 30 % International ETFs as recommended by WeissResearch. Other asset classes are beyond my understanding and seem too risky. People have lost money investing in Treasury Bonds!! Trying to get enough reliable information to pick good foreign stocks and deal with currency exchange and multiple foreign brokers is too time consuming.
With regard to what you have written about world currencies (with which I agree),
is it better to pay one’s mortgage debt now or wait until after the dollar is
devaluated?
I’m in the Contrarian Portfolio and the TFA. Shouldn’t I be buying gold instead of holding short term treasuries as Martin has instructed us. Or at least putting half of my treasury money into gold?
What kind of impact, if any, it might have on U.S. real estates in general should the dollar suddenly collapses? Thanks.
Larry,
It would be helpful, if by using the cycles, you could give us a window of the possible timing for these events to happen. Also maybe some clues we might be able to see that the time is imminent. Thank you.
I have contributed to my 401k for 35 years protect our investment since we are so limited on how we can move them around? After so many “experts” told us this is the correct way to invest all of these years I now feel like I’m in a trap that I can’t excape from!
Thanks for your advise and help.
Will investing in foreign currencies soften the hit when the “ultimate solution” comes, or will most every currency get devalued? Also, what are your insights on the colaterial effects of a globalized currency, such as national sovereignty, justice and freedoms?
Correct me if I am wrong but devaluing the dollar against gold was done during the great depression, only then, in tandem with the confiscation of all privately held gold that was not legal tender. Is such confiscation likely to happen this time around? Federal confiscation laws were not repealed, so they can still be invoked. It would be harder to confiscate gold globally though, i.e., the G-7 / G-20 would need to ratify similar laws quickly.
Larry,
What would we do with our cash in the banK? Is there something we can do to protect our liquid dollars? Also what would you think we could invest in.
Bill Apgar
Massachusetts
What per cent of my personal savings and Traditional I.R.A. should I invest in gold, instead of my present money market funds?
I have a large available line of credit in my reverse mortgage account. Should I use any — and if so, what per cent — of that to also invest in gold.
I am willing to consider your specific recommendations regarding diversifying away from the dollar.
Thanks
Tom
I am convinced that the dollarprice of precious metals will be part of the solution. Some countries with high precious metals stocks (Central banks) could become rich.
What are the effects for EEC countries and should we proceed the same way as US citizens?
Thank you and best regards.
I’ve been gathering momentum on gold for a year now and the story behind gold skyrocketing in the future is compelling - from the decades old manipulation of gold to protect the U.S. dollar to the current debt problem causing devaluation of the greenback. However, I was also so sure that the stock markets were headed straight down but did not foresee the massive stimulus and bailouts which stopped the slide. My question to you is can you play the devil’s advocate and try harder to come up with a scenario where gold crashes. Is there some unforeseen force that can cause this. For example, is it not possible that the FED will decide to “slowly” increase interest rates to protect against hyperinflation (and in doing it slowly, minimize damage to the credit markets)? And of course if they raise interest rates, the dollar might go up and gold go down.
Currently, I am invested in a gold mining company warrant that expires in 2017. What is your opinion of holding gold mining shares? I hate the idea of having to store physical bouillon. My idea is that if I gold explodes the way I think it is, I have much greater leverage holding a warrant on a gold mining company than physical gold itself. If I ever need physical gold, I can purchase it from my profits. The risks I see are mining operation risks and geopolitical risk. But then again, holding gold has its own risks such as gold confiscation or having it stolen if you decide to bury it somewhere.
Hello Larry–thanks so much for sharing your wisdom. We currently have approximately 15% of our portfolio in physical gold and silver, another 40% in foreign dividend-paying stocks and bonds, and 45% in a U.S. money market account earning 3.4%. It’s this account we’re really concerned about (being that it’s in U.S. dollars). We’d appreciate your thoughts on where to put a portion of this account–foreign C.D.’s??? foreign government bonds??? other ideas???
What would happen if G20 instead of changing price of gold to devalue they would simply devalue their money as a group? Point being that Gold would not rise but the currencies get devalued as you state. Possible?
TELL ME, IN PRACTICAL TERMS, WHAT TO DO WITH MY LARGE CASH AND TREASURY BOND FUND LADDER TO PROTECT MYSELF FROM THE COMING DOLLAR DEVALUATION FREE FALL. THANK YOU. ?WILL THIS E-MAIL BE INDIVIDUALLY ANSWERED??? ROBERT SCHENCK
Larry,
First, thank you for the truly outstanding work you and your colleagues do every day at UWD and MaM. Your analyses and advice are the best in the business and you have helped your readers not only better understand some complex global financial and economic issues, but also profit from them.
For the briefing, I would like you and the team to lay out in clear terms EXACTLY how we need to be positioned over the next 6-12 months to deal with the calamity that is coming. I would like to hear specific recommendations and percentages on how we should be invested. For example, how much of our investments should be in physical bullion, precious metal ETF’s, natural resource stocks, foreign currencies, foreign/emerging markets, etc.?
Sincerely,
Dev M.
Great Falls, VA
I agree with Bill Apgar. What should we invest in to save the dollars?
Larry: I live in Spain but have about half of my investments in dollars in the US. Should I bail and bring the money over here? It’s not like the Euro is on really solid ground either. In any case, some words of advice for ex-pats who have some wealth in the US would much appreciated. Many thanks.
Larry, You’ve honestly advised us to be in gold and natural resources. I am, like 30 percent. Sean Brodrick today spelled out the dollar sudden death scenario. I paid him $1795 for 2 yrs of Commodity ETF advice. The two of you together can enable us to succeed and grow! I’m also into your CYCLES program since July. Thanks,
Bill Greene, age 82, Cdr. US Navy Ret 1974
I’d like to hear your comments about the impact on housing in the event of a currency crisis / dollar devaluation and resulting inflation. Seems to me that homes would initially increase in value to match the dollar devaluation, but then fall in value due to the lack of demand.
Larry,
I have some gold & natural resources stocks/mutual funds — but not sure what to do with cash. While the dollar may get devalued, what would happen to commodities if deflation rears its ugly head again. Harry Dent’s “The Great Depression Ahead” warns that this commodity surge may be another bubble ready to burst within a year or so, followed by major deflation. What would be best investment strategy IF that happens?
SteveGN
New Jersey
I’m just an average Joe, working for a living. What is the best way for someone like me to purchase gold in the coming months?
Just a question, Larry. The Foundation Alliance just recommended for us to buy $ Bullish fund. Do you expect a short term rally in the dollar?
As the price of Gold appreciates, as well as related ETFs like GLD, is there any danger that the President will confiscate Gold like FDR did in the Great Depression? If the market detects this, won’t that put a lid on price appreciation?
OPERATE A SMALL BUSINESS. CURRENTLY HAVE AN ESCROW SAVINGS ACCOUNT (APPROX 40,000) TO PAY BILLS THAT OCCUR ONCE OR TWICE A YEAR. WOULD IT BE WISE TO OPEN A TRADE ACCOUNT AND INVEST IN GOLD OR MAYBE SWISS FR STOCKS? GOT TO HAVE SOME LIQUIDY TO PAYS BILLS AS THEY COME DUE.
Larry,
What will happen to those who depend on Social Security payments for their monthly living expenses?
Hello Larry:
I am concerned that if the dollar should tumble, I see my family and my surrounding community panicking. What does one do to prepare? Do you see the banks, and retirement funding crashing down all around us? Really, how much can we REALLY be prepared for? Is it investing in other currencies, and physical gold holdings, mines and such? Is there going to one common global currency, if so what is it?
Very concern for all of us, Marilyn
What is the best way for a small investor to buy physical gold, bullion or coins (ducats in this case, but generally also). I am told coins because they are safer from possible government confiscation, and possibly may appreciate faster (?) but the 30% premium seems to be an excessive amount. What do you say?
Where can one with only small trading accounts invest at this time?
Aloha Larry, from Ron in Kona, Hawaii! I am diversified in a number of ways, but want to know if I should convert my US-dollar bank accounts to foreign-currency accounts. I already have some such accounts with Everbank (3-month CD’s). If you think this is a good idea, I would only keep a small checking account in US dollars from now on. Mahalo for your kokua (help).
Larry,
What effect would the demise of the US dollar have on the Canadian dollar? So far the Canadian dollar has strengthened towards the Greenback..
Should Canadians buy Euros? Do you believe that the Euro will be declared the new world currency?
Thanks,
A.V. Toronto
What will happen to those who depend on Social Security payments for their monthly living expenses?
An interesting and unfortunately probably true hypothesis, but would China buy in to this? They hold the most US denominated debt so they would stand to lose most if what you say actually occurs. Seems to me if the US Dollar gets devalued at the same time as the other G-20 currencies then there would be no difference; but feel free to correct me if I am wrong.
I would like to hear your thoughts on specific investing recommendations to protect myself and family (Gold, Commodities, etc).
Thanks for your commentary, Larry, I look forward to it and think you are making better sense of things than others. I think it would be helpful for some of your opinions as to what you think people should do to get their cash to safety. I wouldn’t expect you to make specific suggestions as to which, but do you think cash savings should be should be put into currency etfs, gold and silver mines, foreign currency cds, physical metals and commodities, and if so in what kind of proportion?
The real estate crisis is winding down and good property is available at reasonable prices. Wouldn’t this be the time to take some holdings out of stocks and mutual funds, and buy real estate?
Safest stocks right now, domestic or offshore, Brazil, Asia. This would be for short term market watcher, not a high roll speculator or a buy and hold person.
What specific gold Companies offer the best/safest choices for a gold portion of my IRA-and should
collectible gold coins be part of the solution? Thank you. Peter Werner
Anthony M.
Larry- You’re doing a great job. — I’m looking foward to your recommendations on taking steps in anticipation of the crashing Dollar. — My big question to you is; How do you feel the future Dollar demize will impact the Short Term (6 mo.or less) “T” Bills we have in hand. My thinking is that maby the “T” Bill money would be safer floating in, precious metals and in Asian Mkt. Commodities. Need you’re take on subject. Thanks.
What is a family to do that has 10K or slightly more in savings, a home, a mortgage, a couple of credit accounts?
What is your recommendation on investing in BRIC companies? Does that counter a downward moving dollar? And what about gold producers? It seems like the foreign companies that are producing gold would have their stock benefit by a rising gold price as well as a falling dollar.
Larry, What do you think of Bob Prechter’s argument that we are heading into a severe deflationary period when all assets will drop in value, especially gold?
Like many of us, we are not financial people and are not sure what to do. It is extremely hard to find good information about what to do and how to act on it for your personal benefit. I have no confidence in my financial investor and I feel that I should stop putting money into my 401K and buy gold with that money. Please reply with your thoughts. Thx,
Paul Wagner
Pardon my ignorance. I am confused. How can the G20 “set” the price of gold when the price of gold is traded on a free market basis? Can anyone explain this to me
Larry, Many retirees do not have a mortgage on their home. Should one consider taking part of the equity as a line of credit and invest in gold or related assets to hedge the drop in house values if the dollar dumps?
Thanks,
Paul
Pardon my ignorance. I am confused. How can the G20 “set” the price of gold if it is traded on a free market basis? Can anyone explain this to me?
I am presently barely able to afford the interest only mortgage which will convert in February. If the push toward inflation continues I’ll have to walk away from the house. There must be thousands of individuals like myself. Won’t this inflationary tactic have a devastating effect on real estate values and banks when these foreclosures take place? Should I be learning to trade or invest in other currencies to protect myself?. Also, ditto the question about the AZ state retirement question as my wife is a teacher.
If what you say is true that the dollar will implode please advice on what happens to the personal debt that people carry, will it still be paid with devalued dollars or will the debt increase due to the the devaluation of the dollar.
For small time, solvent investors who own real estate, it should be mortgages to about 50% of its value and the money should be put into gold, silver, even companies who own a lot of “stuff” in the ground. It seems to me that someone with a $150,000 mortgage could make $75,000 rather quickly. I have my doubts as to whether this will happen by fiat. I think that the dollar will sink the way the pound did after World War II. We are a declining economic empire. However, the may be things on the horizon which we may not even dream of. The 14th century bubonic plague which wiped out 30-50% of the population made the survivors quite rich.
Larry with this pullback today should i be buying GG, NAK,AUY,SLW,NG? i HAVE A 401K ira WITH fIDELITY IN PRECIOUS METALS FUND AND I OWN 40,000 DOLLARS OF GDX FUND. Larry if the dollar will be devalued into half dont you think chaos and killing of not just common man against man but people will try to kill figureheads in Washington? Larry, your talking about the middle class waking up being destitute. I will guarantee that nobody in Washington would be safe. I just cant imagine that happening. I will say that i believe people are already going to stop paying taxes at the end of the year, and if not paying just not filing. Mike
Quite simply, tell us what options the unsophisticted investor has for protecting the value of our cash and investments.
what about the $ trillions in BankTrust Groupe offered to the citizenry of the U.s. by leo emilde wanta and christopher story ?
I have lost incomen from CDs. Now have Money MKTs. which pay nothing. I am 85 so cant go long term. Need income.Without risk of losing all.
Is buying gold an answer? We already have some, but should we buy more?
If this happens; do anticipate the Dow 30 to double?
gold price will be over 3000$!!buy the way ,who now where is german gold !!!??fort nox!!i dont think so ,,,,but all of us we now that deflation is still on the move so after deflation process there will be INFLATION !!!all this electronic money is not in real economy YET! ,but when it enter in real economy and when VELOCITY OF MONEY grove up,,,then be ready for inflation!!!so far only deflation ,,,and there will be i hope one more bull market in us $$ till the end of this year ,,and maybe one more time stock market will be just COLLATERAL damage.all the best from croatia
Okay Larry, we know the problem but give us some good options for our savings cash and other liquid assets. Answers please.
Carlos
What hard assets would you avoid?
Greetings Larry,
Thanks for your work. I recently relocated to CA to live with my girlfriend. She owns a business and is reaching the point in her life when she would like to sell the business and semi-retire. She is frugal and has always managed her money well (better than I have). She has a longstanding and trusting relationship with her broker. Much of her retirement money is in mutual funds. My question is: how best to approach/address my concerns about the safety of her money going forward with her and her broker. Any tips?
Larry,
There is way out of all the debt. Through the states taxing system, merely abolish them all.
The way it would be done is to tax everything at 1% that means M1, M2, M3 money without exclusions or exceptions, there would be more than enough money to pay for every state and federal govt expenditures. This tax system has been presented to several states legislatures already. Also its been presented to the ways and means committee in 1995. the math on this works perfectly.
Well the tax system is 2500 years old. Please contact me for information for exact mat that makes it work perfect. Please email me for information.
Larry, I have a very small % of my holdings in Gold and Silver. It is less than 10%. It would be helpful to get your ideas on the % of liquid assets to allocate to each sector, Also, more imputs on ETF’s vs/ other options. My concern with ETF’s is the verification of the supporting assets. I feel like I am holding a pig in a poke.
Also, please advise about oil holdings. Again, I am holding long on 4 companies. About 10% is allocated to oil. Do I expand or hold.
I truly value your opinion. YOu guys are great. Harry
Hi Larry, I entered my needs and what I have now last nite, but I’m not sure you got it — I have not received any response. The vast majority of my assets ane in cash — one month c.d.s and checking accounts. I need help — what should I do now ? Thankyou, Tim
Where should I invest my money now to insure
it’s safety when the dollar loses value?
Include the risks associated with paper gold (ie. GLD) in your presentaion. Provide info that details the reason we are heading into a depression, not recovery. Most folks will be surprised and will get wiped out, that is for sure. Have one question, if a person has a mortgage, does he/she have to pay it off with the new dollars or the old dollars value? This assumes a split of say 10 old dollars equals one new dollar.
So , what do you and the rest of the Weiss Group suggest we do ?
Larry
I have money in 401k brokerage acct that i can move. what are the suggestions?
What do we hold the ‘wealth’ in? Gold? etc? and where to we hold it? Offshore? bank? Foreign Bank?
Thanks
A couple of questions for people leaving in Latin America , which have economies “pegged” to the USD ( maybe exclude Brazil ) :
What happens to the value of the currencies in these countries ?
The value of the assets ( houses, land, etc ) ?
The value of the investments in the stock exchange ( MexBolsa, Merval ) ?
Thanks
Regards
Hey Larry,
Thanks for your continuing diligence with regard to helping the “average” person protect thier wealth. I would like to know what investment vehicles the “average” investor could take advantage of……physical gold, gold etf’s, mining and exploration companies, etc… The impending crisis has alarmed me to the point of considering moving my investments out of greenbacks (dollar denominated investments) and into physical gold…I currently subscribe to the Real Wealth and Safe Money newsletters and know that you and Martin have been recommending several of the aforementioned investment vehicles… again, thanks for sorting through the mounds of data and giving us information that is timely and profitable!!
I belong to one of the other Weiss services….Foundation Alliance. That service has moved toward being “long” on the dollar temporarily (between now and mid October). Per your writings, it appears to be betting on the wrong side of the dollar market. When do you expect the fall to start? Am I safe for the time period of now until October 15?
Additionally, you recommended earlier that we stay 25% invested in gold and gold related instruments. Does that still hold true or have you changed the number?
buy the way i bought gold in 2008 before DEBT CRISES(not financial) eur/usd-1,338 1ounce was around 620 eur,,,,and be careful DONT BUY paper gold !!!
portfolio allocation for ira
If this re-valuation of gold were to occur, and the corresponding de-valuation of the dollar, how do we calculate what percentage of our investing dollars and/or assets we should put into gold or other investments to protect ourselves. Also, what would be the best investments to take advantage of the gold. Will you also be providing this information thru the TFA?
Need recos that can be used personally or with a retirement account that can maintain purchasing power (with liquidity) whether or not new Bretton Woods type of adjustment occurs.
What do we do to compensate for cash on hand or in savings acct. Is there a place to invest to avoid loss.
Should I consider dumping my 401K and take the hit from the IRS and Put the cash leftoover into a straight savings account?
I have put my retirement savings in your companies hands. What I need from your, before it’s too late is: what stocks, etfs, etc. to buy,sell, how much and when.
If the dollar is not going to be worth anything then do I need to have cash on hand?
Because of lack of knowledge of the market you need to tell me, what I need. Not me tell you.
Should I put everything is gold?
Are this just rumors……the AMERO??? know anything about this???
Larry, thank you for your steadfast work and communication. I am a small potato with a little better than mid-level knowledge of the economy, investments, and financial shenanigans. I am reading your words and others like you over the past few months, and understand the problem perfectly. I don’t understand the solution–how I can personally protect myself? I hold some contrarian hedges. I hold some mining stock and gold ETF. I have some money in cash in a “safe” bank (US from your list). And, I have some cash (US dollars) under the mattress. My fixed income is government based: a small gov pension and social security. I have investment (rental) real estate properties that are worthless.
Please use part of your air time in the briefing to give us very specific measures to take. Would that be opening an off-shore account in a foreign currency for my cash? (which countries?) Would that be buying foreign currency etf’s for China, Japan, n. Korea? Would that be buying gold bullion and keeping it at home? It seems to me that buying for hedge is STILL buying with US dollars, so how can I win?
Gratefully, Angela (Albuquerque NM)
I agree with you re. devaluation, it will be world wide in all markets. I heard Rick Santellie CNBC quote that it would be great is the USD could equal the EURO: He probable did not realize the implications of his statement: The EURO is drastically overpriced is about to take a tumble with will probably bring it to par with the USD. There too many shorts on the dollar and at any moment as they start to cover the fireworks will start…aroung Oct. 3 to 10th when the next EURO economic report is issued demonstration a very, very weak European economic milieu.
Larry,
2 questions:
1) Under your scenario would other currencies rise uniformly against the US$ or would those tied closely to the US economy, such as Canadian $ be partially dragged down also?
2) Would US stocks and stock indexes rise dramatically as the $ declines, making any shorts of less value?
Thank you
Larry,
I am retired and living off SS and modest dividends from stocks. Are you saying we need to get out of our CDs, the stock market and any other liquid dollar asset we have and buy gold, silver, oil and other commodities? If so, what are the best ways to buy these commodities for the novice investor like me? What specific investments would you reccomend?
Are you going to show which type of gold (bullion or rare coins) is the best type of hedge against the gutted dollar? Or are you going to recommend some other mix or type of hedge involving gold and something else? Do you recommend diversification, and what types of investments do you recommend as the best hedges against a gutted dollar?
Larry, please comment on home mortgages. How would devaluation of the dollar impact house payments and the dollar amounts owed on a home? If you have a below prime ARM right now with an option to convert to a fixed (presumably somewhat highter) rate at any time, should you go to a fixed rate now?
Hi Larry,
I’ve been in the precious metals business for almost 20 years and appreciate your work and market insights. In early 2007 I authored America’s Financial Reckoning Day and invite you read reviews at Amazon or request a review copy for your consideration. It is a general theme in my book that the US will lose its reserve currency status and that we are engaged in a silent currency war. Martin Weiss has noted that a downgrade of California bonds could (by law) cause institutions to liquidate their holdings and this could spread into the muni bond market (October maturities are drawing near). In a recent radio interview I quoted Bob Prechter, Bill Gross and Dr. Paul Samuelson that the US bond complex will also suffer a serious downgrade from AAA and this could be a very serious matter. As if foreigners aren’t already running from our auctions and shedding dollar reserves wouldn’t a downgrade from Moodys, Fitch or S&P be the final nail (just like downgrades collapsed AIG, Lehman, Merrill, Countrywide, Wamu and others)? Thanks for your urgent warnings because they are extremely urgent indeed! Kind regards, CHC
Do you believe the gov’t (US) will make the ownership of gold illegal?
WE ARE FOLLOWING YOUR ADVICE, BUT I WONDER IF ARE ASSETS ARE SAFE IN
GOLD STOCKS THAT YOU RECOMMEND OR SHOULD IT BE IN HARD GOLD AND SILVER ASSETS?
WYN HARTER
HI Larry What will happen to the Can. Dollar.
I believe the first target will be the US Dollar. A manufactured crisis with the encouragement of the bankers would be the customary method to deceive the majority of the public. Perhaps Israel bombing Iran followed by a banker green light to the Saudi’s to begin selling crude in Euros would initiate the process and divert the blame away from Fed and administration. In this scenario relative strength of Euros would temporarily skyrocket. Report that commander of special ops troops told group to pay off debt and buy extra food for families. Group members were given $11,000.00 bonus towards this end. What besides $ collapse would cause food shortages in US other than $ collapse with gasoline shortages? Until world currency is agreed upon, some currency must temporarily be the reserve currency. The Euro as today’s second world reserve currency would seem to be a logical temporary choice. What do you think about the Euro and Yen?
I WOULD LIKE TO KNOW WHAT IS GOING TO HAPPEN TO THE 3 MONTH T BILLS,INTEREST WISE.I HAVE BEEN LIVING OFF OF THE INTEREST INCOME WHICH HAS NEARLY VANISHED.I HAVE PURCHASED YOUR RECOMENDATIONS IN STOCK.IN MARCH YOU CALLED FOR A RALLY,MARTIN WESS SAID WE WERE GOING DOWN TO 5000.I WENT WITH MARTIN BIG MISTAKE NOT SELLING MY INVERSE ETFS.MAJOR PORTION OF MY MONEY IS IN 3 MONTH T BILLS I AM RETIRED AND HAVE A SMALL PENSION,I ALSO SOLD MY GOLD STOCKS WHEN YOU CALLED FOR A CORRECTION.YOU MADE A BELIEVER OUT OF ME THANK YOU,PAUL THEODOS .
Larry, thanks for the great job you’re doing!
My Q1: in the past, Real Estate provided *Real* protection against inflation. Will this be the case going forward? The RE prices seem to be at or near their bottom.
Q2: You and Martin recommended to invest only 5% of portfolio in gold. Where should we put the 95% of the money to protect it from the dollar demise?
And, finally, my PLEA: PLEASE post the TEXT of your presentation right after you have that audio breefing. I am deaf and cannot hear your audio presentations, but I need your answers all the same.
THANKS!!!!!!!!!!
Larry:
I’d like to “know” in advance what 5 safest curencies (in order of global acceptance) to convert to, how soon and what percentages for each, should my assets be backed by.
Larry,
Given your email alert today regarding the increasing odds that the G-20 will eventually increase the price of gold as a self-protective measure to cut their collective debt load, which governments stand to be the biggest losers and which stand to be the biggest winners of such a move?
What investments do you recommend to hedge against this move by the G-20?
Larry,
I am trying to get my head around your comment that increasing the price of gold details with the debt issues. I understand the devaluation of currencies ‘relative to gold’ but if all currencies devalue at the same time, payments for debt and goods and services etc really doesn’t change; unless you hold gold itself. So…….all assets held in paper currencies will be devalued, it is only hard assets, or at least gold and probabty silver, that will retain their value. Essentially, if you double the price of gold (with consequent devaluation), you pay off dollar denominated debt with devalued dollars, since the debt stays fixed but the volume of dollars doubles. Is this view reasonably accurate?
Larry, at the same time it seems good to invest in gold based on your insights, Porter Stansberry seems to take a contrary view; that is, he looked at the ratio of the Dow to the price of gold and suggests buying stocks. Can you clear this up or is it that time will tell who is right? I see a comment above that Bob Prechter thinks even gold will drop in value. So what to do? Stop reading e-newsletters?
I am an avg guy with wife and kids. We have about 60K in all of our investments. Help people like me hang onto what little we have by telling us exactly where to park our money.
Thank you!
What can a small investor do? We are trying to get out debt, have a mortgage, a 401-K, a few stocks, and college plan for children, and about $10,000 in cash savings. Most everything that is presented is for the big money. My mother is to retire is 6 months - what should she be doing?
Dear Larry,
Same concerns as others–how best to salvage the dollars I’ve worked hard to accumulate over forty years. Specific recommendations would be much appreciated!
Gisela
what type of gold should we buy?
if they devalue the $ will they adjust amount we owe on houses cars etc?
Start with answering briefly Who, What, Where, When, Why and How. The Dollar collapse is becoming water cooler conversation in corporate America. There remains a lack of clarity as to the options available for investors and workers (read retirement accounts) who do not want to be surprised by a sudden devaluation. What is the elite, smartmoney doing to protect their wealth? Is it simple investments in Currency ETF’s or direct investments through off shore accounts into foreign equities? Will an Everbank CD work? Does one need to dig a hole in a foreign land and bury all their gold there? Hmmmm. These are puzzling times with many moving parts!
Larry,
In view of the unavoidable demise of the US dollar, what should one do to protect a lifetime’s worth of retirement investments, all of which are invested in dollar denominated instruments? Put most of them in gold backed funds? I don’t need income from them just yet. Notwithstanding the market’s recent rallies, I too am not convinced that the recession is over, and I am wary of re-investing in stocks or mutual funds at this time. Nor do I have the time or wherewithal to utilize ETFs. Thanks to Martin’s early warnings, I was able to avoid the significant losses experienced by many who followed their financial advisor’s flawed recommendations to remain in the market.
Thanks,
Ed Junior
Larry,
thanks for all your wisdom and info you share with us. I am a fairly new subsciber to your service and I am trying to figure out what to do. Should I put cash into foreign currencies and if so, which ones. Are the Australian Dollar, Canadian Dollar or the Swiss Franc good options?? Any feedback is greatly appreciated.
Thanks
Larry, If one is holding a large amount of cash in $US, what percentage of it would you recommend converting to gold and silver, and in what proportion ? Many analysts seem to be favoring silver recently.
Thanks, Bruce F.
Will owning shares of ETFs such as GLD be any less advantageous that owning physical gold?
How will all of this affect the Canadian Dollar? Is it possible for massive inflation in the US to not spread to Canada?
We prudent investors all agree on the problem and most agree on the solution, i.e. gold and other intrinsic instruments.
My only 2 questions are,
one - how to get the best leverage,
two - how to insure the asset will not be burdened in some way, or worse, confiscated
Given Sudden death for the U.S. dollar!
What will be the impact on dividend paying stocks?
Larry,
This would be the Armaggedon of the financial world! How do we protect ourselves? Should we buy all the gold stocks and physical gold we can get our hands on?
Larry,
I agree completely with you because the Biblical Prophetic Word says exctly what you are saying! And we finally have the right conditions and the right players in place - in the US, China, Russia and Wester Europe to bring these things to pass.
But what more do we really need from you? The wisdom that shows us what we need to do NOW so that we dont get burned like the rest of those who do NOT know.
There is a Nigerian proverb that says “When the crippled folk on the steet are warned about the throng of war that is fast approaching the city, only the wise cripple escapes being trampled to death”.
Thanks for all you do.
David
Larry: You mentioned increasing an ounce of gold to 2,000. Question: Could the goverments conficsate all gold held by individuals as our goverment did in the past? If so why purchase gold?
You asked for input on what information we would like to see in your upcoming briefing. Most important is specifics - what is the best way to hold “real money”, portfolio allocations (cash, commodities, bonds, equities, etc.), US or international sectors with greater potential, etc.
If the price of gold were to be doubled overnight by the G-20, how would that affect dollar ETFs like UDN and UUP - immediately and over time?
Larry,
You consistently push gold to protect against the crash of the USD, but I live in Canada. Our dollar seems to be relatively strong and our economy has held up pretty well over the past few years. Is investing in gold a good choice for Canadians? If so what would you recommend…things like XGD or GTU.U? I am pretty much sitting entirely in money market and want to get involved in the gold rush, but I don’t want to buy gold in USD because if the dollar tanks and gold shoots up then my profits would be reduced right? Let me know how Canadians can profit through these times because I’m sure many of your readers are from north of the border.
Take Care
John
Sounds like owning gold and silver bullion is the only way to protect ourselves. Not bank accounts, not even gold stocks. Even owning foreign currencies is not the answer if its a G20 country.
Larry:
After a recent BK i have all my assets in cash (about $200k) and want to get out of USD asap. What should I invest in? I dont want to tie everything up in gold.
Thanks
Husband and I are “caught” with not much profit in our portfolio, and nearing retirement. If we buy anything else, we have to sell most stocks at a loss. We have energy and commodities, mostly, some gold mines and a few metals. Most of our portolio was purchased prior to the market taking a huge downturn. What kind of a percentage loss should we be considering if we sold out some other stocks to buy hard gold?
What else can we protect our money in? If our economy collapses, what should we do to prepare–maybe buy a farm, small rental houses? Where do we put our money to survive?
Dear Larry-
Simple solutions for those of us with busy lives is always best, as they have the best chances of being implemented. How about 5 easy steps to safeguard yourself over the next 2-3 weeks?
Jerry
can I ask you if you would invest in the following:-
natural gas (ung)
us oil fund
gold at what level
silver at what level
platinum at what level
Larry
I ve read a couple of articles re the Gold ETF that they will be hard to sell because there isn’t enough gold to pay off the sell off.
Which is better to have SOLD Gold coins or the ETF’s
Obama is a one World government guy. I believe that his whole goal is to wipe out the American dollar by overspending. He will then be able to throw up his hands and say ’see now we need the UN peso’ because America is bad.
As a Canadian I can not believe Americans are allowing this defilment of their country to occur.
Hello Larry, Well, I just wonder how can the G20 technically “set” the price of gold, to spike up two fold? Is it not a free flowing commodity, based on the sum of all market participants valuation?
If this one “thing” can be technically done, then you’re right - it would mean a pearl harbor on financial markets…
How does one convert his gold etf’s into a currency other than the dollar?
With so much bearish news about the dollar it is highly probable the dollar is on the verge of a multi-month rally.
Many wonderful questions have been asked in this blog. Never have I seen such fear amongst retirees, and those of us that once thought we would ever be able to retire. I have a friend in Argentina…do we need to go for a permanent visit? Where are the safe haven’s?
As it was, I would be 92 years off getting my mortgage paid off. Should I just sell it?
loan to equity is about 50/50. I hate to think that I might eventually just have to walk away from it, but it the expensed double–well calamity would be the result.
Maybe, we are moving towards a resource based economy system in which all goods and services are available without the use of money, credits, barter or any other system of debt or servitude. All resources become the common heritage of all of the inhabitants, not just a select few. The premise upon which this system is based is that the Earth is abundant with plentiful resource; our practice of rationing resources through monetary methods is irrelevant and counter productive to our survival.
Dear Larry:
Please spell out what conservative investors should do and when. Like many, I’m heavily in cash,waiting/hoping for a substantial correction in the dollar. I have no investments in Asia, foreign currencies or sovereign bonds of “strong” countries. I’m VERY worried about my positions in govt. and corporate 20-year bonds. Please be sure to advise investors like me who are getting killed by near-zero interest rate on the 90-day T-bills that Dr. Weiss has been recommending for conservative investors (over 60%) for a long time. Because of that, I’ve missed a huge rally and have nothing to show for it. I’m very worried and discouraged at this point. Please help!
Thank you,
Bruce Blinn
where shall i put my $150,000 cash? i must choose soon.
I’m at a place in my life where I’m debt free with a little gold, decent 401K, and substantial amount of cash. How do I protect it? Should I buy all the gold I can?
Larry,
If what you’re saying about the devaluation of the dollar is true do you think it would be a good idea to buy up some of the things you’re going to need in the near future? I have a neighbor that’s buying canned goods and storing them, thinking something really bad is coming.
Larry,
You say you have no doubt that universal currency devaluation (e.g. gold be revalued at $2000 overnight) WILL happen, but are not sure of the timing. So why should we be concerned with gold’s short term movements and cycles. Shouldn’t we just be loading up on physical gold now? I would think mining shares would not do as well because although their reserves would double, the cost of extracting the metal would double as well.
Hi Larry,
Will silver be as good of an investment as gold? I read today that during Gold bull marklets
silver can climb even higher percentage wise.
Larry what option does a retired person have who is living on a Federal Pension and Social Security?
Let’s assume this person has no savings or investments.
Thanks
Jim
Dear Larry,
I am not one of the Alliance members looking for ideas on how to participate in the current stock
market rally since I protected myself in 07 and 06 by reducing my exposure. I have a viable position
in gold and may add more, but I do wonder why we have not been encouraged to increase
positions in TBT. Keep up the good work and realize that many of your members are not short
term oriented- we observe what is happening and are not always vocal. Thanks for your input.
William R. Johnson
95% of our retirement is locked in a variable annuity. The good news is we have a comfortable monthly income. The bad news: 1. “Inflation”, 2. Limited investment alternatives (we have a lot of fund alternatives but that’s it.),
3. We lack liquidity.
Larry
What would be your recommendation should I want to purchase Gold Bullion, in what denominations and from whom.
Thanks
Mulford Fisher
I am a little confused. Didn’t the dollar coming off the gold standard raise the risk of inflation?
If the price of gold would go up wouldn’t it cover some of those printed dollars, and maybe if gold went high enough to cover the printed dollars and as we brought down the gold price and decrease the dollars in tandem wouldn’t that be a solution versus just changing the look of the paper? I do see that the power of the money would change either to the UN or a select small group of people if what you say is going to happen. The latter is more likely to happen.
I agree the only way out of this debt mess is devaluation. But how can this solution you put forth be handled politically? Next year is mid-term elections and 2 years later the big one. Stripping the man/woman on the street of half their buying power sounds like political sucide for Obama and the Democrats. So the time to do this would be after the 2012 election.
Keep up the great work Larry!
What happens to the US and also the International stock markets when this happens….is this good for them or not?
What good will my gold coins be to me if no one has any $ to buy them? Should I sell them now? What about gold stock? Thanks so much for any help you can give.
OK Buys and Sells,
If I keep this opinion thing, up I’m going to have to charge ya. Ok, we agree the dollar is headed lower so time/percentage drop is the big question. If China dumps a bunch of our debt before the Shanghai trade expo, it would be a timing issue worth noting. However, “Zero” will try and keep things a-float until after the mid-term elections. China has dumped several billions of stimulus into Shanghai for this expo. It’s really a big event for them. The real question should be what will fall hardest first, the market or the dollar? And, another big factor is the retail sales numbers hitting the balance sheets and media coverage effect of down sales volumes of the Christmas holiday season. That’s when the full impact of the commercial leveraged loans will hit defaults and bankruptcy with the banks. And, a record number of no-doc adjustable home loans will be resetting in that period. Ouch! Nice smile, but this economic down turn can only be charted so much. There are just too many events coming together in a six-month period. And, holders of US debt will try and opt out just before major down plays. Whoever sells a big chunk of US debt first, will profit the most. Once the selling starts, nobody will want to be left holding dollars.
If the dollar falls before the market, what currency should I be holding in order to buy in at the biggest bottom in history? And, since I know diddlysquat about stocks, what brokerage allows you to hold cash in foreign currencies until buying in? And, what brokerages are the most leveraged? The assets of closed brokerages will soon belong to union interest.
Now is the time for countries like China to establish long term contracts with US tech sector companies that will bring China into a worldwide tech player. As the dollar falls, a five-year contract will do nothing but go up in value with fixed product pricing. China should also take options with those contracts that allow them to purchase the company at 50% of remaining contract value should they fail. It would be the biggest tech grab in history. Also, as companies fail, which ones own the best intellectual property rights? Since most intellectual property is suppressed with corporate interest, buyers of those companies will corner sectors of emerging technology. So what’s remaining of value that could be negotiated for over our remaining debt? How about National Forest Timber harvest/property grants, fishing rights within so many miles of our coast line, intellectual property held by our universities. For decades, the Japanese have used mile wide nets to rape the fish population off the west coast. Guess what, it was not the loggers or river dams after all that decimated the fish population. We looked the other way as long as they purchased our debt. And, China is trying to corner the materials markets. Our universities and grad students have come up with over a hundred thousand new strategic compounds each year for decades. Imagine the full financial impact on corporate interest and environmental solutions if those compounds could be fully utilized. And, the same could be said for health care. I firmly believe that China will not back Russia in the Middle East because we will bargain with cold fusion and hydrogen technology. Opps! No more energy crisis. Adjust your portfolios accordingly gentlemen. I think some of the best sectors over time will be agriculture, timber, and fresh water. But make no mistake, now is the hour of opportunity for the wise.
Look for another “bank holiday” like the last depression. Remember, when the government came in and raided all the safe deposit boxes for gold. Don’t think they don’t have listings of all gold sales tucked away for the next time when they come right into your home. And, instead of it being a bank holiday, it will be a “financial holiday” where they shut down the Internet and stock markets to make their grab. But don’t worry; this will only affect the upper 5% of wealth holders. Right!
davygene
Larry,
If the dollar does collapse as you and others are talking about. The briefing should include the best places to put money like what stocks and what countries. I am not talking about making money but preserve capital.
Larry,
1) How does cutting currency value in half reduce govt debt holding? Does that imply that govt will pay debt with gold?
2) What will be the impact to consumer debt when govt’s cut value of currency in half? Won’t that mean the average conumer will have half the money available since costs of goods and services would double?
Larry
I worry about anything paper….cash, treasuries, even ETF’s if and when this scenario unfolds. It will be chaos.
Is the best answer to just buy gold bouillion? Or, can we combine gold with is Silver bars and coins? Maybe I should invest in an oil well LLC. Please address the gold and silver pro’s and con’s.
Thanks for the heads up!
Roger
I’ve read every post I’ve received over the past 4 or 5 years concerning these very issues; deeply interested. I’ve even purchased quite a holding of Silver coins which I hold privately out of the State of my residence. I have resisted the purchase of Gold, no doubt I appear foolish in the eyes of Gold dealers but, to this very day, I’ve never read a single article which explains how Gold holders will spend their Gold when the bottom falls out, when prices will, at least, double, when there are no FDR’s, nor credit to fall back upon and when there will be very little circulating currency. The only cry is “Buy 50 to 100 Gold ounces now and when we go splat your Gold will double to $100,000 to $200,000″.
So if the common man should buy Gold before the crash and it should double or do even better, Larry, how do you see we’ll spend this new found wealth; that is, other than this new fortune, just why should we buy right now? Obie.
Hi Larrry,
I’ll bet you are smarter than I am on the markets but I wonder if your recent precious metal predictions are the herd clamor at the top? At 92% Bulls in the Silver market and with declining volume on silver’s recent rise, one has to wonder who is there left to buy. Usually markets turn on this kind of sentiment.
It is my belief the S&P & the Dow Indexes are near the same turning point.
Look for your comment.
Please address how you believe physical silver will perform in this scenario, specifically pre-’64 circulated US coins and silver Eagles-what is your assessment of governmental confiscation risk of these assets?
Thanks in advance-
OK Guys, I have read with interest the questions given to Larry. Now some answers are needed. What are the defensive investments? Where to look and purchase them? I am troubled by the stock market, even though I have invested since March with great success, I am considering taking profits and sitting on the side line for a while. Any ideas? John
Hi Larry,
Thanks for your tireless research and output to us! Please include in your report your thoughts contrasting the “suddenness” and urgency of having precious metals as a hedge to the dollar collapse and you thoughts in your recent post “Fireworks in gold and the dollar” in which you imply that metal prices will go down before they go up and to consider not buying “high” now. It would seem that any waiting could be a considerable risk. Please clarify.
Richard
I agree that devaluing the dollar, generally, helps reduce the real impact of the Nat’l debt. However, I don’t really see how “setting” the gold price at $2000 would impact the National debt. You state: “TO YOU, that would mean food, energy and everything else you pay for every month would instantly DOUBLE in price.” Explain why it is you assumption that everything would double in price. The great majority of the people in the U.S. own no gold. Will people that do not own gold care? Remember that 3-4 years ago the price of gold was $500. That means it has doubled already. Almost no one cared. My neighbors and business partners don’t care. I care because I own gold, but people (business owners etc) who did not own gold, did not run out and double the price on on their goods simply because the price of gold doubled. Mark
Hi Larry; I like all your comments, essprcially the Monday morning ‘wisdom’ comment’s. The devaluation of the dollar ’scars’ me.
Beeing gold stocks is that the only answer, or gold coins??
With the world condition and all the uncertainty about everything, it’s
makes one feel like in ‘limbo’. It is not a comfortable feeling.
I don’t have an answer.
I just would like to know:”Why were the U.S. Banks allowed to spend like crazy”
Now we are obligated to buy cheap tires from China, while some U.S. tire plants go bankrupt., etc., etc.
They say the unemployment rate won’t peak until the year 2011.
Until that situation get’s better, nothing will change.
I have heard some people say:”It feels good not spending.”
If you have an answer, please let us know.
You are with an INTELLIGENT group of people, I have great respect for all of you.
So long, sincerely
Rosemary
im holding i bonds…i.e. tips at last check they were yielding 6.5% how long should i hold them before the gov defaults…in your opinion
I have been recognizing the probability of currency devaluaion for years and now the certainty. What investments should I sell to buy gold? I am retired from my independent sales career and own one commercial real estate property which is paying it’s way, not fully leased.
i believe the u.s. gov. will do some dirty trick confiscation of physical gold.
how does a u.s. citizen hold gold outside the u.s.?
Larry
The world is not going to the gold standard !
They will create a new world currency, that will be paperless (digital money).
That makes much more sense.
During the transition they will devalue the dollar during the conversion process.
Uszly
What do we do with dollar based IRA/TDSP that have limited investment options,
Hi Larry,
The best advice you or anyone can give is “live within your means”. If you cannot afford something do without—-unless it is ESSENTIAL. Always prepare for a “rainey day”. But some money aside —only to be used for emergencies.
Sincerely,
Denis
It would be nice to get some notice before it happens.
Larry,
We know that in the 1930’s, Roosevelt seized all the gold and made private ownership illegal.
Aren’t we likely to see similar acts of desperation on the part of this administration?
Ive read that there is a massive short position on silver and less available. As gold and silver go up and silver shorts bail out, should not silver be a better investment than gold? What about a short gold, long silver spread?
I am aggressively buying silver and gold coins, but only those that are not subject to govt. confiscation. I have about 10% or less of my total portfolio in physical coins stored in my safe. I think I need more, but storage is a problem. On the other hand, in the case of a nuclear attack on our electronic grid, I would need these coins as banks, stocks and all book entry holdings would be unable to access.
Thanks,
Sam
I own some variable annuities which do not give me the flexibility to chose good options. Should I cash these out to raise the funds nesessary to invest in tangible commodities ?
With all global countries in trouble, I don’t know what to do???? I have bought some swiss francs, Should I put all money in gold and silver?? I have cd’s coming out. I am putting them in checking account so I am more liquid. I do not trust government, I am to old to wait 20 years to get my money back.What advice do you have????
Can’t put my hands around the good stuff. How’s it going to help me when all hell breaks loose? Bartering is the most crudest form of a transaction. How are we going to travel around and use GOLD to pay for services rendered? Even the RICHEST MAN IN BABYLON, Arkad, didn’t cary around a gold bar in his fat purse!!!! Shave a little here, and a little there. Let alone protecting our retirements, home values, etc., etc. Remember the FIFTH law of Gold!!!!
What I can not understand , that this is comming as a surprise for you .I see this comming from the time Ronald reagen was in office .Where you all a sleep
Why don’t you set up a WEISS ETF ???
Would Gold ETF’s be a good solution(paper) or would the metal be more comfortable?
What are you recommending to offset he anticipated decline?
What sector of stocks will hold itself up?” Mining or commodities?
Is holding just gold or gold moning stocks the defense? Which are more recommended if yes?
How will bonds of various longevities be affected?
Is it recommended to sell out stock positions in the entirety?
Will any specific global stocks or ETFs provide any degree of safety?
It is my understanding that, in spite of the dollar continuing to loose value against most other currencies, the value of China’s currency continues to be tied to the dollar. Essentially, they are paying more for commodities than they would if their currency was pegged at its real value. I understand it helps their export industries, but in every other way it is increasing their costs. Please explain their words and actions against the dollar when they are in a real sense supporting it.
Larry
You are going to have to tell us well in advance, first when to move and where we can protect our assets
Hi Larry
and thank you for all info about the dollar crash. what i do not understand is how the japs manage their yen, why the interest rate is so low on their 10 year bond and who buy their bond, they owe 300% more than USA if you compeer their debt to GDP. why we can’t be like them. offer cheap money to our producers and get the prosperity going. can you e mail me or someone that filter your email send me an articles that can clear me up.
Thank you
I totally agree with your analysis of the global currency conditions.
Greetings, Larry—How can purchasing gold assist one’s buying power—it seems like there would be a double standard—the purchasing power of a dollar and the enormous value of gold coin or bullion. Should one buy gold anyway–and then maybe having the power to buy lots, and lots, of dollars. What’s the prognossis? Thanks, Damian
Larry,
Matthew Rensen’s comment is valid. Do you have an answer? Also, If all G20 nations agree to inflate at the same rate together, then nothing changes. It is only when one nation inflates relative to another nation that it matters. Do you disagree?
Larry:
There is a difference between gold going up and the dollar coming down.
If gold goes up against all currencies it will most likely signal a rise, in all currencies, in the price of silver, copper and other raw materials and commodities. Such an event will lead to impoverishment of the middle class world wide. How can other counties guard against this possibility?
Will the dollar go down against all currencies or just some specific currencies such as the euro the yuan and the yen? In such an event the price of gold will go up relative to the dollar but not relative to those other currencies. These different eventualities require different lines of defense.
Please enlighten us.
Kirk Valanis
If what you say is true and the dollar is on its way to crashing, then it follows that we shouldn’t be holding stocks in dollars. What currency do you recommend that stocks be held in and how do you go about switching to another currency?
Except for my home which is debt free, all my assets are in IRAs. Withdrawing all these funds from the IRAs would trigger an enormous tax bill which might be no worse than having 50 percent confiscated by government pursuant to a declared financial crisis. So what can I do within the IRAs to protect against a currency re-evaluation? Current IRA investments in order of amount include:
Treasury TIPs; Treasury only money marklet funds; emerging market funds including EWA, EWS, EWZ, FXI and PIN; gold including GLD and GDX; oil and natural gas ETFs and companies; VFICX and MERKX intermediate term bonds; and technology MTK.
Which are most vunerable to the currency re-evaluations you foresee?
Are you saying, don’t have much cash? Bec that’s not what Martin Weiss advised in The Ultimate Depressions Survival Guide. We have some silver and gold and a treasuries account. We invested in Brazil, India, China after the last conference. Where else do we put assets?
Larry, are short term Treasury bills still safe? If no what should we be doing with that money? If we have a mortgage on our home does that mean if the dollar is devalued we would be actually paying less for our mortgage?
Larry, What should we be doing with our Money Market Funds? Capital Preservation Fund?????, etc.
are you saying that we should be loading up with gold or gold related stocks?
Larry,
I appreciate your advice and have follow along and you have now baited us with “impending crash of dollar” sky is falling but have given us no answers…….are you going to make us subscribe to something else to get the answer?
anthony
I am afraid to put too many eggs in the gold basket. You said our fiat currencies would be worth half and goods and services would double. Could I spread my resources among gold, natural gas, oil, agriculture products, fertilizers, copper, and other commodities for protection. Also what about Asian nation stock markets that have little or no debt? Would these ideas work?
Thanks Larry,
Pete Doyle
Should I load up on gold in my nonqualified accounts. Should I buy silver and what kind, coins, bars,
also what kind of gold, coins or one to 5 ounce bars.
thanks, tom
If the price of gold is doubled, won’t all currencies be affected in the same way since no one is currently on the gold standard?
What %age of portfolio do you recommend be in gold?
What is the best way to buy gold bullion or coins?
Thanks!
I have noticed that when the SPX goes down, almost ALL classes of investments, including gold, go down. Should I wait until late Nov. or Dec. to buy more gold?
In order to protect the purchasing of my money (I’m retired), I’m considering increasing my investments in commodities (gold, oil, etc.). Is now a good time?
I am only 1 year from retirement and am extremely concerned about my ability to afford even the basics in the years to come. I have followed the Weiss recommendations, am a charter subscribe to the Million Dollar Contrarian and still I have no clear idea of how I can afford not to keep working for the rest of my life. My net worth plummeted last year and I cashed out of nearly everything I could, my 401k is no a 101k and sits idleing in all cash…I have Gold (GLD), mining stock and an oil mutual fund…what would you recommend for someone in my situation. The old retirement mantra of a 60/40 bond/stock ratio is just not looking all that healthy to me.
Thanks for your posts, you are extremely erudite and interesting to listen to.
Dear Larry, Thank you so much for your letters. We have paid off our house, have a 401 K that lost 35% last September and a 6 month buffer of cash and no other debt. We want to preserve and protect ourselves from what is coming. Please advise and again thank you so much. Lynne Kumar
What is your opinion of the view now held by the Elliott Wave folks as it concerns near term market and currency moves?
I would like to know the mix of investments we should own between hard assets and stocks. Also should we be holding cash even in the form of treasuries? This letter indicates the move could come fast and holding cash in any form could be a problem. I also am concerned about holding gld and slv. I read that the same banks that have hugh short positions in gold and silver also are the custodians of the gld and slv etf’s. If that is so can they be trusted not to use our gold and silver to cover their shorts if they get in trouble and don’t have the money to cover.
I will be looking forward to your program.
Will buying gold or gold stocks help, or since everybody else may be doing it, would it just make matters worse?
If we make the decision to hold a more than usual (about 10%) of our assets in gold coins or bullion and keep it in a bank deposit box, what chance is there that our government (Canadian) will at some point require us to declare our gold holdings? Is it perhaps wise to purchase Cdn denominated gold shares in Cdn companies as well?
My 401k retirment plan has no natural resource/ gold sector fund .What can I do to protect my retirement portfolio from a devalued dollar.I am 62 tears old will face retirement in a few years.
How do I protect my money in my work 401K? I do not have access to invest it in ETF’s, gold or inverse ETF’s. What type of fund should it be in to protect or should it be withdrawn even with the 10% early withdrawal penalty?
Even with Gold at $2000, the U.S. wouldn’t be able to pay off its debt.
Gold at $10.000 would be a better target, and would make me a millionaire, in dollar terms :)
If the value of the $ drops by half…I can see the advantage for the US in the case that they can export more.
However the internal US consumer economy drops suddenly into a severe crisis.
So I do not see the advantage that the debtproblem for the US will be solved with 50%, because the debt is in US $ and the US has to pay in US$ (or do they change their gold in $, have they such a lot of money)
???
thanks
Wim van Dalen
Include info on various world currency trades. Whose currency is the most likely to move up the most. Also, include silver as a topic.
Why should we keep money in short term Treasury bills rather than some other ’safer’ investment choice? Won’t a devaluation of the US $ also mean that same devaluation in our T-bills? I don’t understand why Martin Weiss is so strong for them other than having some quick ‘cash’ which then becomes worth less.
I have been watching your emails for some time now. I am very interested in protecting my life savings as well as real estate my wife and I own. I need to know where to put my saved cash as well as protect my real estate safe from this dollar plunge. We have a lot invested in the stock market which we haven’t pulled out of (yet). I have heard the Dollar will trade 3 to 1 on the Amero when it’s introduced. Will the entire economy go to Amero overnight? Will mortgages also convert so you get dunked on your balance, now payable in Ameros? I could pay off the morgage now, but haven’t yet done so because I wanted to stay as liquid as possible. This is a very confusing time, I never dreamed in my 51 years that we, as a nation, would ever face this type of scenerio. I know our own government will never warn us of this impending disaster until it’s a done deal, so I need some direction to protect all of our lifes work.
Gold at $10.000 … wouldn’t that make the DOW jump to 100.000 points as well ?
How can I protect the value of my cash and still be liquid?
Will the money that I have in precious metals stocks retain it’s value?
Thanks,
Ron Green
Where is the best place to buy physical gold/
Thanks,
Joe Tombro
Larry,
If the dollar is in free fall,(and I have eveyy reason to think it is), why did the latest reco (e-mail this am) from the “Foundation” say to buy UUP Powershares US $s. I don’t understand the reasoning.
Richard
It seems we need to move away from the dollar and into gold. But, is taking physical possession too risky because the government will make it illegal to hold physical gold as they have done in the past? If we move in to GLD or gold mining company ETF’s, will the government force liquidation or worse, take them over? Unfortunatly, our government is not to be trusted. We are no longer a free people. We only have the illusion of freedom. Larry, please address these concerns as I believe I speak for many of your customers.
How do you protect your money in a retirement 401K plan that you can not remove without a penalty because you are under 59 1/2? I am 48 and have a diversified portfolio within this investment(Large Cap, Mid Cap, Small Cap Stocks, Growth Funds and International Stock), but am I better off at this point moving it into the low interest guarenteed selection of the fund? I also have a Roth IRA with the same type of situation. Help!
Hi Larry
What can we do. Buy ETF’s, gold, silver, mining etc.?
Thanks
Dennis
I have most of my cash in Government only Money Market Funds, but this no longer appears to be a solution for the scenario you envision. I agree that a portfolio of Natural Resource Stocks (growing in demand and limited in supply) will solve some of the dilemma–but don’t know how much and how soon to make this change. I also have a group of State and Federal tax exempt bonds upon which I am dependent for some of my living expenses. While these are considered fairly sound, the interest payments won’t be adequate in a high inflation environment. I am not married to my present stock portfolio and am ready to dump most that will not survive the crisis ahead–hopefully with sufficient advance warning. These are the questions I am trying to resolve for myself.
Hi Larry:
I’m 74 years of age and need to invest my money wisely. Please give me some guidelines as to where best to invest - Gold? Inverse dollar funds?
Thank you!!
China dosn/t let it’s currency float on currency markets. Instead, they set the value of their currenty. How is China able to get away with this unlevel playing field. How would a exchange rate set to the price of gole affect China? I have to think they are in a bad position because the value of thier currency will soar making their products more expensive on the world market.
What do we do with our reserve funds now?
Is there a safe haven?
A few comments:
We are living in an unsustainable model. We are destroying the planet with our consciousness of consumption and lack of self responsibility. How much longer can a 7 Billion (and growing) population continue to strip the earth of its resources without negative consequences? (which are already well underway). For example, the US generated 254 million tons per year of municipal solid waste (1/2 goes to the landfills). A few years ago, there was a new car engine being built every 0.21 seconds somewhere on the planet. As we sit around and worry about the massive web of debt impact on our 401K’s, money markets, stocks and gold, there are huge changes occuring. I do agree that one should try to preserve what was built up over a lifetime of hard work, but there may be no easy path through these next 5 - 10 years. There is a case for listening to many different sources and making your own decisions. Watch out for anyone with one sided opinions, and why they take these positions. I don’t think any sources are fully objective. There are major missing peices of data to the global pictiure.
Larry:
It seems that holding gold or silver (actually taking possession) seems to be the best route, but there are practical problems. To take possession of such hard assets one must pay sales tax (13% in Canada). This puts the buyer in an instant “significant loss” position immediately. Also the government could make possession of gold illegal and impound “for the good of the economy” hard assets underlying commodity-based etf’s.
Are there any readily accessible high quality bonds or stocks that pay dividends in euros? (readily available to Canadian or U.S. citizens?)
Also, many individuals (specifically those in the baby-boomer age range) would be very uncomfortable trading in 80% of their wealth in bank stocks and bonds for bars of gold and foreign bonds (even if that were the right way to go).
From what you are saying, Larry, we are all just coming to the explosive end result of living beyond our collective means for decades. What we need is a politically acceptable solution and I don’t see one!
Allen Simpson
Is there any safe currency? Having all assets in gold will it be enough? Hoe does the real estate hold as a long term investment in countries like Canada and Mexico?
Larry- Do you believe that the ETFs GLD and SLV really have all the gold and silver that they say they have? Is there any way that we can be sure that they do. I heard that they do not allow anyone to take inventory.
Alex
Would stocks of foreign based companies (or American companies with substantial foreign based income ) be recommended vs. U.S. based (with U.S. dependent ) income?
Would closed end foreign dependent bond funds be a good investment?
If someone has a US Schwab or other PCRA as part of their work provided 401K plan or IRA, or rollover IRA, and has most of their money in a gold ETFN like the new Swiss SGOL, and the government devalues the dollar, will the shares of the SGOL safeguard the purchasing power ie: double in value, should the dollar devalue by 50%?
I think that all this talk about gold doubling is beside the point when you look at the other precious metals: Silver, Platinum and Palladium. For example, yes of course, everyone and his or her grandmother is focusing about what gold will or won’t do. However, almost all the gold ever mined in the history of the world is still available. Not so with silver, platinum or palladium, which are not only used in jewelry and ingots or coins but mostly in industry since they are major industrial metals in their own right: Silver is used in photography, dentistry and electronics, platinum, which is also heavily used in jewelry in Asia, and it’s smaller cousin palladium, in the auto industry (catalytic converters). The auto industry is obviously facing its challenges but watch out when it comes back with a vengeance (Hey, the Chinese and Indians want cars too!) and platinum passes its old highs of $2,800+. Palladium, the cheaper alternative to platinum in many areas will do event better since it is only at $300 and has been known to top $1,000 (it is the volatile cousin of platinum). How about silver at $17 now and once at over $50 (I know that was in 1981, when Nelson Bunker Hunt tried to corner the silver market but in inflation adjusted terms that actually means $100/ounce)? To get similar appreciation of gold it would have to approach $8,000/troy ounce in inflation adjusted dollars. In fact, silver has “quietly” gone from $5 to $16 while gold “loudly” went from $400 to $1,000. And during the time frame that precious gold sea-sawed between $850 and $1,000 in the past 6 months, palladium went from below $250 to over $300. You don’t need to be a math wiz to figure out the winners here. One more thing about platinum: While there are literally tons and tons of gold bars in the vaults of the world, it is said that all the platinum ever mined in the human history can be fitted in a cube of 17′ by 17′ by 17′ = 5000 cubic feet.
Hello - I am a Canadian and would like to profit from the falling USD. I have sold all of my US equities, but am disapointed that I know have little exposure to China. I am also interested on how I can have exposure to the BRIC nations from stocks that trade in Canada (I am avoiding the US, because while I could make 10% on a trade of a US security I am afraid that when I convert the US funds back to Cdn I may lose 10% of more.
Larry,
How will the dollar devaluation affect different types of investments such as money market funds, treasuries, bonds, stock investments in American companies vs foreign companies. Where do we move these investments to benefit from the coming devaluation. What are some good investments in gold and silver?
Victor
I have NO debt….IRA is in money markets of short term Fed securities….Alot of Gold and silver and lots of plain cash in safety box. What so I do with cash and IRA to not lose,big time, when they devalue dollar???
Thanks Rob
How does one learn how to trade the Forex?
Is the Forex going to be history after the currencies are tied to gold?
should we be converting our cash to foreign currencies,and what about cash and gold&minerals funds in a roth,are they safe?
I like alot of others are concerned as to what to do with our investments. I’m sure we would all appreicate all the help we can get. Thanks.
Regarding potential impact on life insurances, at least some of us have whole life insurance policies that have years of premium put in and accumulated sizable cash value although in highly rated stable US ins co. Sounds like such policies are in danger of losing tremendous value along with future death benefits that might not be worth much. Should one consider either cash out or perhaps switch to variable universal type and invest in dollar hedges? As for term life, I don’t expect much adverse effect since the annual premium would have been paid by cheaper dollar anyway, true? Thanks.
Would closed end foreign dependent bond funds be a good investment?
My area of interest and concern is that the SLV and GLD ETFs don’t have sufficient physical metals to back up the claims. Who monitors them to confirm they indeed do have sufficient physical assets equal to their liabilities? Or if they have sufficient hedge as in futures contracts, is that good enough? If others start fudging on their commitments- short sellers- and the gold doubles, my long position gain is going to be made up of somebody elses short. Wouldn’t it? If there is too much fudging, that opens up a big problem.
It seems physical ownership is the only way to be sure and remove doubt. Am I thinking incorrectly or missing something?
Would you advise one to put all our savings into gold? If in part, what percentage would go into gold and what percentage into other assets and which ones? Also, when you say invest in gold are you saying to invest in gold coins, bars, ingots, wire or in securities or certificates? How soon should this be done?
Tell us what it would be like if the US dollar went to near worthless as it did in Germany after World I.
What would we be experiencing in various areas of our financial and daily lives — rents, mortgages, groceries, retail items?
I could not take a Gold Eagle one ounce coin to the grocery!
What would be the consequences of extreme Hyper-inflation on our daily lives
Where can we find info on such historical events?
Charles Lelly
Hi Larry, I’m into China via Tony ,I.m into Gold via Sean & yourself I keep adding more things
Via Million Dollar contrarian ect. It’s not a simplified situation. I have old recomendations
from sean on urnamium that look terrible. Please Simplify This Dollar crash
If our retirement funds are invested in IRA mutual funds and annuities, can anything be done
to retain the investments before the market tanks and dollar is devalued? People under 59
cannot take any withdrawals without penalty. Are there any options? Thank you.
With gold at all time highs and this threat of the distruction of the dollar would it be a good idea to take all my money out of the stock and bond market and buy land? If not, does it make sense to by gold at $1000/oz, and risk deflation? I don’t invest on my own. I use a firm to do this for me. They recently recommend that I change from 60% stocks and 40% bonds to 60% bonds and 40% stocks. I did this, so now what? If the dollar tanks will any of it be worth having?
Dear Larry:
I would very much appreciate an “in depth”, detailed discussion of “Perth Certs”.
The best manner and place for purchasing them.
The best way to store and safeguard them.
Possibility of concealing them from all comers.
Current tax laws regarding them.
How one might reasonably expect federal law regarding them to evolve.
Thank you for any help you can give.
Carl
1buy physical gold silver and platinum and secure it away from all eyes
2 sell the dollar and buy commodity based countries currencies ie the Rand Kiwi Norwegian Krone Brazilian Real Canadian dollar
3 Base metal producers
4Rare metals in any form
How about US equity funds? How do you see it, are they going to crash in value if dollar takes the deep plunge, and should the money be withdrawn and invested elsewhere, like into China, Brazil, Russia?
Best regards,
Timo Knuutila
Larry, Many retirees do not have a mortgage on their home. Should one consider taking part of the equity as a line of credit and invest in gold or related assets to hedge the drop in house values if the dollar dumps?
Thanks,
Paul
P.S. - Sorry, forgot to tell you great post!
Everything that I worked hard for is tied up. Mutual funds, annunites, 401k (work)
and small amount of savings, plus checking account. My husband has lost his job,
he’s on my health insurance at work which is very high for a family. I don’t know
what to do and i’m scared. We rent and our landlord wants to increase the rent and I can’t afford what she’s asking. Is there anything that you can offer me to keep what
little that I do have. I would greatly appreciate it.
thank you
Dear Larry,
Yes, I’m ready, as a 21st Century Super Trader (?) to receive your advice on what to buy.
I posted yesterday and mentioned my buying TBT, then searched most of all the other comments and found only two others who knew enough to ask about TBT
IF you do recommend TBT, I hope you will also explain exactly how they do what they claim.
The simple claim is that TBT is a way to short US long bonds, but the details include derivatives and foreign currency trading, within the fund, but the TBT could never lose more than your entire investment, not so?
I am almost ready to buy more TBT even without your advice, but sure want to see that special report SOOOOON.
Karl Loren
Most of my partner’s and my wealth (excluding our home, owned free and clear) is in IRA accounts. Since there are many restrictions on how IRA funds can be invested (for example physical gold must be held by a custodian) be sure to include actions that are possible within an IRA, or whether you would perhaps recommend withdrawing IRA funds (and paying the penalties) in order to have other options. Let us know. Thanks.
Hi Larry,
I live in Ireland. Say I have 40,000 Euro savings in the bank, how do I go about transferring that into gold & where do I keep the gold when I get it?
Most people would be afraid to have gold in their homes, so can you educate your readers on this issue?
Leonardo
Hi Larry
Thanks for your hard work. I think what most of us are dying to know is what to do now. I subscribe to your newsletter and I know that you recommend up to 25% be allocated to various gold positions but you also say you expect a pullback and that now is not the time to add to gold.
My dilemma is that I only have about 8-9% of my portfolio in gold(gld and gdx). But I also have investments in DGS, HAO, BRF, EWZ, IEZ, DBC,DBA, HOGS, and SOHU.
All in all I am about 58% invested and 42% cash, the 58% in either emerging markets(primarily Brazil and China) or oil/commodity investments. IEZ is all I have invested in the US but that is the oil industry so I think it’s a good long term play.
The $64,000 question: When to buy more gold??? I know you have 30 years experience and you are probably right that this is a head fake and not the big run-up in gold, but my fear is that you could be wrong and maybe this is the beginning of the run-up in gold.
Thanks.
Reynolds Johnson
First let me say your video commentaries are great. I would be interested in advice on vehicles that would maintain some purchasing power for funds that are not in great amount. i.e. $100,000.00.
How would one excellerate growth prior to devaluation by government. Would it be Precious metals call options? Buying dollar puts? Dow puts? My concern is having funds and purchasing power when devaluation takes place
I am heavy in Gold and Silver stocks.I still have cash to invest.What other type of investments[stocks] should I be in to protect myself. ?
Bill Creech
Hi Larry & Co. Thanks for the continuing advice. I’m not convinced yet that we can know anything for certain about short term trends in the market, but do agree with you that something’s gotta give eventually in the currency market. My items of interest for the briefing are 1) how to not get killed by unpredictable short term moves in either the stock or commodity markets, and 2) given the anti free market, anti small investor position of the current US administration and many of the foreign ones, do you really think they would “allow” any group of small investors to profit significantly by their currency re-organization? Don’t you think they would find a way to avoid letting their economic critics profit by their actions? It seems to me that we need to consider how they will accomplish their goal of equalizing debt while not allowing one group of small investors to profit. Gold might be too much of a “lightning rod”.
Thanks;
Dan
I currently own three properties. 1/2 acre in country invironment with house, garage, shop and barn and lots of grass, trees, etc. 2/3 acre with vacant land except for a barn on the back and a few fruit baring trees. A 2 bedroom, double wide mobile home on rented property. I also own a few shares of gold stocks. Right now, I’m in the process of leasing the first property, looking for a grower/renter for the second property and am living in the mobile home. Will any of this property act as any kind of hedge against the sudden death for the U.S. dollar? And what can I do to protect myself even more.
Can you please comment on the amount of gold in reserves, the amount of gold at COMEX and the taking of delivery of gold?
It is my understanding from reading various blogs that problems are arising in delivery of physical gold.
WILL ETF’S LIKE GLD STILL BE GOOD INVESTMENTS AFTER THE CRASH???????
Should I get out of ALL inverse funds?
Will Silver jump too?
Will stocks generally double?
Can anything be done to save us from being taxed on these false gains?
Larry - All of our retirement money is in a long term CD from which we get one half of our monthly living income. Should I take the early withdrawl penalty and pull it all out and put it into gold? If prices are not devalued with the dollar it will be very difficult to manage what is left of our Golden Years which are already not very golden.
Is it possible that dollar devaluation could also come with a change in what our paper currency looks like? There are some who believe that another currency is already printed and waiting. One color for inside the USA and another color for outside the US.??
A big Thank You to Weiss for all of your help.
Karen
I’d like to know your opinion of the safety of GLD, in view of all the negative commentary about it, and whether the Swiss ETF, SGOL, with its promise of independent audits, is a trustworthy alternative.
EASY……..indict Obama, then impeach and remove him from office. he had a hidden agenda that
was obvious before he was elected……he has lied to American’s and his allegiance is not to our
country. he is not a natural born American and should not be in office. this mess did not start
until he took office. his agenda is to ruin America. lets take him OUT of office.( and his czars too)
I too am worried about the impact on Social Security. I have a large chunk of my assets in gold and silver but that isn’t going to cover my expenses if my SS is cut in half. Any ideas?
What is the solution?
I also own a few CD’s in the name of a trust I inhereted 1/2 of and am the trustee for. What can I do to protect the assets of the trust?
1. Should we sell our personal home since it will drop and take the money out now, and use it for investment in gold and commodities?
2. Should we sell other Real Estate such as land and second homes?
3. What would be a better country to live if the U.S. economy tumbles and stays flat like Japan?
4. We can play the gold and commodity boom, but are there other plays in currencies such as moving dollars to Euros, canadian or australian dollors, etc.?
1. How much of our $$ should we convert into Gold - 10%, 20%? GLD ETF?
2. 1 Gold coin would be ~ $1,000 but for daily usage shouldn’t you buy Silver coins? How much?
3. Is my IRA safer with Prudential Insurance than with Vanguard Brokerage?
4. What % should we switch to a BRIC ETF?
I would like to borrow money to take advantage of this upcoming events. Is it a good strategy?…..How can I do this?
Larry,
I’m near 70 years old and have about 300K cash I need to preserve (in today’s dollars) for my 3 children. Do you know any Q&D way that I might accomplish this, with any returns preferably tax-free?? I’m too old to own any physical gold but I do have 200 GLD, 600 SLV, 600 UNG and 500 BPT. I also own 170 ac Farm + my home. I’ve considered Muni_Bond Funds but the share price is too high now. Any ideas?? Thanks
Larry,
Like another respondent, I too will retire early with a state pension and the accumulated savings I have in a Schwab deferred compensation account. The first 3 concerns you describe are compelling and warrant serious preparation. However, your “4th Horseman of the Apocalyse” scenario seems overblown and, frankly, impossible. Neither the G20 nor any other consortium of governmental bodies controls or “sets” the price of gold. Gold is a freely traded commodity, the price of which governments have no control over.
Larry,
Are there currency plays (ETFs) that can help to preserve our wealth? Or are we doomed since all paper currencies are fiat?
I am a mother, wife, psychotherapist and faculty member teaching couples therapy. The money I’ve saved is all self earned, day by day. What you say about loosing value is frightening to me which I am sure is not your intention. Please tell me what you are suggesting as wise action and a measure of protection.
Thank you,
Deborah
hello Larry,
don’t see how gold could be headed lower as you have been saying given the USD situation….although stocks and gold appear overbought, wouldn’t you think the run in gold will continue with stocks given the USD weakness and overall sentiment change in the market. also, just heard the G20 in Pittsburgh will not be discussing the USD which certainly seems bearish given the neglect.
best regards
Larry…I would like to know if short term treasuries are safe when the dollar is in decline? I have cash that needs to be somewhere safe. Also, my IRA is in a CD. Would it be better to put it into Century Capital
Preservation Fund. I know you cannot tell us what to do, but hope you can offer some safe alternatives if the dollar falls. Muriel Bramble
best way to own gold. what about one ounce pieces such as krugerand, is physical posssession advisable. thank you
Larry, What should retirees do if they have an annuity with a guaranteed income for life? Go ahead and sell it and invest it out of the country ( China or India) or buy gold and Natural resource stocks. A lot of us are confused as to what to do. Thanks Harv.
All my retirement money is with your parent company, Wiess Capital Management. Will they be able to protect my money from this crisis your talking about? How will they do it?
Wall Street should pay for more than half of the Nationl Debt. A couple of the trillons it earned off of derivatives could really help what they created or caused. All they have to do is get together and name the date and time for its solution. No problem, right?
This financial situation scares me and I have the feeling that I’m not alone. At least I have company. Here is my question and concern. I have a few gold and silver coins and an internet connection so I can read your column but not much else of value. I imagine that all the powerful bodies we have elected will stab us in the back by making it illegal to sell or trade in physical gold and silver. Can you say anything to reassure me otherwise? Sometimes I actually have an optimistic day but this all seems like a lose-lose situation. Maranatha!
Timing is the key for Gold and Silver . We are now in a correction mode so buying at these levels could see a loss of 10%. Suggest what the cycles tell us and compare that to the G-20 timing and suggest an incremental plan
that builds a GOLD position with least downside risk. If we know there is a 100% chance of GOLD reaching $2000 in 2010/2011 and only a 5% chance of moving below $1000 then we have a good view of risk/reward.
Next , what is best way to buy GOLD. Stock , GLD , ETF , bullion or a combination? Very important is what the cycle say about any major correction along the way to the 2011 high in GOLD. Also consider government confiscation of GOLD or GOLD holdings. After we get profit in GOLD , where can we safely park the profit ? Is overseas account an answer or overseas brokerage ?
I am a retired federal civil servant, with a significant sum of money in the Thrift Savings Plan, currently all held in the Government Securities option. How do I convert this to tangible gold without sacrificing value to taxes and penalties? I am 55 years old, and have been retired for 2 1/2 years.
Larry:
Whar other investment is there other than Gold and Silver to put your money in to be safe?????
Harold
Larry…..I would like to know if short term treasuries are safe when the dollar is in decline? I have cash that needs to be somewhere safe. Also, my IRA is in a CD. Would it be better to put it into Century Capital Preservation Fund? I know you cannot tell us what to do, but hope you can offer some safe alternatives if the dollar fails. Muriel Bramble
Larry,why will the price of energy and food double if gold price doubles? I understand they are commodities but ,how do you tie it to gold…..unless the dollar is to be tied to gold. thanks Phil
I am considering cashing out all of our IRA’S and 401’s, paying the penalty and going for the gold. This may seem radical but we are in a very radical climate and withy whats going on.
Thanks, Dave
Hi Larry, I am anticipating super deflation, a collapsing dollar and rising gold prices directly ahead. Therefore, I am mostly in cash and money market funds at this time. Where should I invest much of my portfolio if you agree that what I anticipate ahead is about to happen? Thanks, Weiss Inner Circle member Bruce McCauley.
Most all of our money is tied up in a Defered-comp retirement. Is there a way to retrieve that and put it in gold and other investments. My husband is retiring in 11 mos, as of now we will have his pension and income from a second job. We have stopped putting money into our IRA’s to pay off our mortgage.
Larry,
I receive the newsletters from the U.N. Moreover, you are correct they are in discussion of ending the U.S. dollar and going to a one-world currency. The U. S. is bankrupt and the U.S. is virtually doing the same thing as a counter fitter with a printing press in their basement.
I have the current newsletter from the U.N. on Sept.10/09 concerning the meetings of ending the U.S. dollar and thought this would be a resource link for your readers to read once you have checked it out, if you chose to do so.
The U.N. has been in discussion for months concerning the end of the U.S. dollar and it will occur it is just when will it occur? The sad part, the major news media is not picking up and/or its importance to the American people.
The U.N. calls it, trillions of dollars in AID to the United States. The countries are upset because they will not accept the U.S. currency/paper dollar as repayment for any loan because of the devaluation of the dollar is so low, it is useless monies.
The fact that these discussions are taking place should shake everyone to their core. The only major news outlet that I know whom has been reporting is the New York Times Newspaper.
The only difference I see between someone counter fitting and the fed is that, one is legal to have a printing press printing off useless monies and the counter fitter is illegal using a printing press to print off useless monies.
Larry, can you please explain what might occur if the other countries demand repayment as they are now and have to use something in the place of useless currency/paper monies? The only thing I can think of, the United States would have to sale off massive amounts property/ownership to other countries and could this possibly mean that the government would have to pull individual assets to pay this debt? We are in serious trouble and little in government speaks the truth.
Who knows, maybe Canada and/or Mexico will purchase the U.S. to pay off our debt. Mexico does have massive natural resources that no one wants to talk about either.
Thanks
Carol
Larry,
I’m 67 years old and have 70 per cent of my savings in the Thrift savings plan
invested in the short-term US Treasury securities. Should I consider investing in the International Stock Index fund at this time?
Thanks
Since you feel so strongly about gold, rather than physical possesion what gold stocks to you like? Also since Canada seems to be a lot more isolated from the problems than the U.S. what companies in Canada are relatively safe?
If gold is the answer, what percentage of my portfolio should be in gold? Should I hold Gold coins, bullion, GLD or other similar stock or ETF?
I have my money in short-term US Treasuries. Is that good?
Hi Larry,
I have an annuity and with the dollar shrinking, what would be the best place to transfer my money into? I know that I would be losing money by taken it out of my annuity, but I am more worried about the shrinking dollar.
Olga
Larry,
I am in the unfortunate position of trading both yours and MPC’s recommendations from Ireland and the Euro. I am loosing on each trade if I convert back to Euro as each week goes bye. If the doller goes the way you say it will I am going to take a serious hit. So far I have converted back to Euro on each trade. What do you recommend I should do in this situation…? should I not be trading on a Euro Exchange and would it be possible to recommend trades for your Euro clients?
Kind regards,
John
LARRY,
I SUBSCRIBE TO YOUR “REAL WEALTH” AND THE “FOUNDATION”!! LOOK FORWARD TO EVERY INSIGHT THAT YOU PASS ALONG!!
IN THE FOUNDATION, WE JUST REC’D A RECO TO GO LONG THE US D THRU UUP! HOPEFULLY THIS WILL BE A SHORT TERM TRADE AS MENTIONED–THRU MAYBE END OF SEPT.!! ARE WE NOT CUTTING IT A LITTLE CLOSE, NOT KNOWING MUCH TIMING WISE, OR WOULD WE BE BETTER OFF JUST STAYING OUT OF THE $$$. YES, I DID THE UUP TRADE!
THANKS FOR ALL OF YOUR IDEAS AND KNOWLEDGE. WE ARE OF LIKE MINDS, AND I APPRECIATE THE GUIDANCE, CONSERVATIVE APPROACH, WITH ALL OF THE STOPS!!
STEVE M.
should we start buying gold?
What counter measures can we take against a falling dollar?
Larry,
As much as I agree with you . . . . . America cannot afford a return to the GOLD Standard and will have to be dragged into this change kinking all the way and will only agree to it as a last resort because it will hand cuff them to a future of financial control. It will also destroy the value of Stocks specifically in the U.S.
The Only Way this can Happen today is if All of the other Countries who own GOLD have more GOLD than the U.S. and can force the issue.
Remember the GOLDEN RULE . . . . . . He who has the GOLD Makes the RULES !
Swiss Genome
If you are so bearish on the dollar why did you just recommend your subscribers to buy Power Shares DB US
Dollar Index Bullish (UUP) - - - which I did? I can only assume it’s for a short term play and you will later come back and buy the Inverse ETF.
Dear Larry!
I realize what the world economy is going through, I am not saying, I am economist, not a bit, but the impact of the Recession is also felt by me so far. I am Canadian, and all I have in my trading investment is only $18,000.00, the rest is in Canadian$. So what can you make from this and suggest to me, what to do is safe?
Thanks,
Tewolde
What paper currencies, if any, might be immune from devaluation ? e.g Australian, Cadadian dollar, India, China Swiss ? Which ones if any ?
2) Since my ETF GLD is in American Dollars, will the value of my GLD holdings devalue accordingly ?
3) How does one buy and store gold in a foreign country ?
Can you explain what will happen to the value of my stocks if they were purchased in U.S. dollars and the dollar is either totally devalued or eliminated? In what currency will those stocks be valued and at what loss?
Yes we knew it was comming with the sucess of Obama. However, does anyone consider the possibility of a ” World Goverment” forming out of this clusterf**k? I suspect it would be well within the foundation families as they have indicated in the past at the summit meetings. M
I’m interested in knowing whether putting money into paying off the mortgage is a good call with today’s economic climate. It seems a sure 4% return on investment (mortgage currently at 3.65%). If the dollar collapses, we’ll still have a mortgage to pay off!
Christine G
If the US$ value has eroded 14% this year, then my buying power in the “international shopping mall” is reduced by 14% which looks a lot like what would happen with 14% inflation. How can the dollar be dropping that fast and the US inflation rate still be nominally 5%?
What would be the case for other currencies around the world, specially for the developing countries in south america like Colombia, Venezuela or even Brazil?
All of us are looking for guidance from someone that has a heck of a lot more knowledge on this subject than us. I have not lost any money in the stock market since I pulled everything out before the stuff hit the fan. However, I did lose money when Lehman went bankrupt. I had a chunk in corporate bonds that my broker chose not to dump assuming that they would never go under. All of the rest of my investments are in other corporate bonds from supposedly solvent good companies. Being very conservative did not serve me well as regards Lehman. Should I be concerned with my other conservative corporate bonds? They are all paying between 5 and 6% and are all relatively short in term.
What will happen if anything to the value of existing stock, like for instance, General Electric. Will it just be paid out in the new currency or will the value be lost somehow? What is our best way to protect that value? We can’t sell it now without taking a considerable loss. No way to convert it to gold and then what do you buy, Gold or silver junk coins? I am concerned that one day we will wake up and our money will be totally worthless. Then what is the medium of exchange? How do we buy or get food etc?
Question: For those of us who still owe money on our mortgages even after retirement, should we just keep paying as we are or would we be better served to pay down or pay off anything we owe?
#2: what do you think will happen with taxes? If the dollar is devalued by 50%, will wages stay the same and expenses that are not tied to international factors or commodities, remain lower? If this happens, government expenses should not double so taxes should not also double.
#3 Is it better to have cash or to be fully invested in stocks such as commodies or essential services, i.e., food, utilities, etc. ?
Larry, how do we handle a retirement money in US short term treasuries? Thx, Ted
What currencies would be better places for savings ahead of the devaluation? Are there any strong currencies in friendly countries?
I was wondering when would you be responding to all this comments/ inquiries. Many are desperate calls for help as everyone is confused, leary and scared w/ this uncertainties. Our government run by despicable and greedy politicians who are worms fed by low-down lobbyists and extreme supporters of radical groups are not concerned a bit about common citizens like us. This is the time that we Americans need to join voices and forces to revamp/ revolutionaze the set up of our nation’s leaders. (They’re not leaders at all, they’re power hungry scam bags.) They all need to be incarcerated for stealing people’s money and acting aganist the interest of the nation- of the mass. We really need some true honest, trustworthy managers in different sectors to inform, advise and direct people to a life of peace and security.
We hope this is your intention, if it is, you will be blessed. Waiting for your general response to these comments. Thank you.
How will this devaluation of the dollar affect ones monthly mortgage payments that they are now paying?
How will currency in smaller countries e.g. the NZ $, be affected by the drop in the US dollar?
Given the bretton Woods scenario you are laying out why would you not be buying Gold and gold stockslike crazy beginning now? When do you plan to provide recommendations to us. Thx.
In the article sent 9/18/09 you state that US prices of goods could double over night by doubling the price of gold. Would other countries do this too, perhaps at the same time? Ex. it doesn’t matter if you buy gold in US dollars, Euros, Canadian, Brazillian, etc. everything just doubles relative to gold?
If so to protect one’s finances, it would seem that all that needs to be done is buy gold NOW! But what about diversifying in other things? What about shifting US equities to foreign equities? What about converting and holding US dollars into other world currenicies? The Euro is usually up against the dollar as is the AUD, the GBP and the NZD dollars.
If the US dollar is now and will increasingly “take a bath”, maybe another stratedgy is to get out of the US dollar, convert to other currencies. Pumping everything one has into one thing alone sounds scary.
Will you/have you evidence that investing in ??? will work? My thought would be a mix of Gold, Foreign currencies and foreign equities (foreign investments held in that countries’ respective currancies). Other countries are selling their dollar based investments. They must be buying something else. What are they buying? I’m sure Gold isn’t the only game in town, though I believe we should all have some in our portfolio.
Jim
At age 64 having seen 30% of our IRA’s and savings disappear, I have been following your market recommendations with a portion of our retirement. However, most of it is in FDIC cash. How do I protect the principle of our savings and protect the value since it is currently now in dollars?
Hi Larry,
If what you say about the G-20 conspiring to suddenly raise the price of gold, thereby devaluing their currencies in a coordinated move (possibly overnight) is correct; I have a serious concern that they will also find a way (beforehand) to confiscate/outlaw privately held gold, and even commandeer investments such as the gold ETFs, and other precious metals funds. I don’t trust them to allow gold investors the benefit of such windfall profits. What’s your take on this?
Mike
Well, Larry, if you and the other team members will give simple and easy to understand steps to implement, including the how to do each and when to do it, it will certainly help many. Naturally, none of you are prophets, but we trust that you will do your best to give us the wisest steps to implement. Thanks.
How do you protect yourself if you are holding cash Euros.
John
Larry,
How much of my liquid assets would you recomment putting in precious metals &/or other commodities &/or oil &/or contradollar funds or ?
Norm
Larry, I am nearly 62 years old and have been in the real estate business for nearly 40 years primarily as a land speculator and litigation appraiser. For that reason, I have very little experience in other markets. I have been managing my small stock accounts for about one year. So far, I have made good returns playing mining stocks on the dips and rips. So, for me any insight on commodities such as industrial metals, gold, coal natural gas and oil would be helpful.
Best Regards,
Rich Vannatta
Clearly western governments are drowning in debt and currency devaluation can help make current real debt manageable. However, it seems that no matter what ultimate inflationary solution may make current debt payments servicable again, the majority of the USA’s real decifit going forward is in unfunded liabilities whose payouts are linked to inflation and will therefore rise in lock step with costs associated with any dollar devaluation, such as Social Security (not to mention any of a number of other social programs that are funded). How does the government of any more or less socialized western government, keeping a large portion of its populace on the public dole, make cost of living adjustments and still come out ahead in terms of their debt present AND future since the larger future debt will rise with any reduction of currency value?
sorry….mortgage currently at 5.65%. Unsure of tax bracket this year but a 3.5%-4% return is practical after eliminating the mortgage interest deduction.
Larry:
Intersting artivle from you on the sudden death iof the US dollar. I am very confused by one comment you made–whereby if gold doubles, everything you buy would double in price?….gold has gone from $500 to $1000, and prices didn’t double…I’m not sure I get the economics…
I have been reading your missives for a long time. I have used your kind suggestions snd believe I have insulated my small retirement.
Thank you, Ron V.
Funny you should mention he collapse of the dollar. Did you see over the internet where someone said that Washington D.C. would have a nuclear attack? It this is correct, then we can expect marshal law around October or November when this nuclear bomb goes off in D.C.. This may be how we get the Amero, because the treasury will most likely be wiped off the face of the eart. But, what the hell? Who pays attention to the internet anyway? Then again, does this sound familiar? Just think of this, if the president, vice president, and all the congress and senate are spared this Catastrophe then you can guess who knew about the bomb going off in D.C.?
What would be your advice if one has credit card debt or mortgage debt? It would seem that if the buying power of money is suddenly cut but income stays the same, having personal debt would be a bad thing.
Larry;
We are primarily talking about maintaining the value of our liquid funds, and retirement funds that provide income. While precious metals might be a “disaster” solution, it seems that converting into gold-backed currencies for safety is the most expedient answer. As long as you maintain the relative value of what you have, you are able to convert into the current exchange value as you need funds.
Dear Larry,
I have been following the advise of Robert Prechter at elliotwave.com, who’s advise I learned to respect over many years as he was one of the few who was right with his predictions in August 2007 and afterwards he called exactly the bear market rally in March. I also learned to respect your opinion. However Robert Prechter believes that there is no solution to stop a general deflation of all assets including gold. However he recomends to hold it as it might become difficult to obtain later. He also believes that short term the dollar will recover following his wave counting and as there are more than 90% bears following the sentimentindex. You do not agree with his opinion ?
Regards,
Eddy
Larry, If what you say comes true and gold does double in price just what will happen to interest rates and also real estate values?
Larry, I’d like to see your take on some of these topics/questions:
- If the world agrees to massively devalue, wouldn’t it even out much of the pain?
Or are folks in the US going to get hammered most?
- Where to reliably buy physical gold and silver and avoid steep premiums.
- Where to store metals safely (bank safety deposit boxes may not be so great)?
- What about US residential real estate? Haven or albatross?
- What about Canadian real estate, the Candian dollar, Maple Leafs or banks? (Canada
seems the most comfortable place for Americans seeking alternatives.)
- What about the Swiss franc, Swiss franc annuities or Swiss franc life insurance? If a
decent alternative to fixed US assets, how can I get them?
- What if I own U.S. fixed deferred annuities or cash-value life insurance?
- Should I sell my U.S. home (little or no remaining mortgage) and rent while doing
something else more productive with my equity?
- Would it be smart to take out a reverse mortgage now, doing something else with my
equity and getting to live in my home indefinitely to boot? (Assuming I like where I live and
want to stay here).
Thanks Larry - - - I look forward to every installment you and your team offer.
Annapolis, MD
I have money in TIAA/CREFF and an IRA at Wells Fargo. I am a dual citizen with Australia. Should I consider moving my money to Aust? There is a special tax agreement between the two countries, but it is extremely difficult to find out how one can transfer retirement money to Aust. (without the usual significant penalties). Could you please suggest what would be the best strategy given the unfolding realities or refer me to a Co. or individual(s) who has the expertise to answer these Qs.
Thanks
Hi Larry:
When you say the price of gold may be set at $2000 per oz. does this mean that all retail goods will double in price. Is this how you arrive at our dollar being worth one half of what it is?
Thanks,
Karen
Larry,
Have been following you for some time and have generally benefitted from your advise. Thanks very much. Have also been following Bob Prechter. His views are also timely and accurate. What do you think of his scenero of general deflation coming soon? Any thoughts?
Frank
It seems to me that I should (1) move my 3-year ARM to a fixed rate mortgage now (2) invest in Asia (3) invesst in gold (4) innvest in TIP’s.
Hi,
For this crisis what do u plan to do with your mother inlaw’s money?
how much US dollar will go down? what will your wife plan to do with your money? Please let me know asap.
Thanks,
mm.
Larry, Your work is greatly appreciated. I believe that your readers would be best served if you were able to present the options available to us based on different scenarios - retired, young newly wed, middle aged etc. One specific question I have is what happens with pensions and entitlements if we do in fact experience a “Bretton Woods” .
It is not the foreign manufacturer’s fault that this economic condition exists. US citizens created this condition. US citizens elected legislators that purposefully destroyed most of our industries that then fired all of their employees that were employed in the US located factories for various economic and environmental reasons.
Our recent leaders decided that we could get people in other countries to work and make these things for our consumption if we paid them with US dollars that were redeemable to purchase freshly printed-paper T-bills, US Bonds, and other types of freshly printed-paper securities that they could use to purchase title to any of the privately owned US located assets that were created by previous generations of Americans.
Our legislators of both political parties, importing companies, consumers that purchase imported products (including myself) because these products are cheaper than US made products, Ignorant Government Employees, Self Serving Corporate Managers, Wall Street Financial Genius Master Criminals, Enron/Arthur Anderson type management, NAFTA, EPA, WTO, OSHA, and the buying public just to name a few, have created this situation. The Government needs to reverse the existing negative trade balance by any means possible.
The US citizens want to pay as little as possible for the things that they consume. The US Businesses must relocate and/or outsource labor expenditures as much as possible to escape paying living wages to their employees if they want to satisfy the US consumer’s demand for the lowest price possible for the US consumer’s purchases.
Larry, if governments around the world instantly halved the value of peoples savings, there would be riots, nay, REVOLUTION!!! - even here in good old Northern Ireland. I understand how these chaps have turned misinformation into a science, but even they would be hard pushed to come up with a positive spin for that one.
A MAJOR pretext would need to occur for such an event to be justified in the eyes of the people.
I’m talking here about a crash like we haven’t seen before, an implosion of equity values resulting in a massive flight to safety and the dollar (and an pat on the back for your old nemesis JC ☺). Only then could such an event be put into effect politically. Given all the talk of green shoots in this rally, I can’t imagine the puzzlement followed by outright rebellion of citizens everywhere if they woke up to find half their wealth missing?
Having said all that … if the mother of all crashes did occur (did we not have it last year?), then yes, I can see something akin to your scenario playing out.
One more point if I may … a while back you mentioned giving silver investors the go button when you thought the time was right. What are you views on this in present time?
What are the implications of this “sudden death” of the dollar on developing/emerging economies in Africa? I am particularly curious as regards what effect this will have on the oil based economy of Nigeria.
Also what are the short term and long term prospects for gold producers?
Larry: I’m concerned too. What INVERSE ETF’s or dollar put options should we buy to protect ourselves?
Larry,
If the G-20 sets the price of gold overnight to $2000, is it not likely that stock, commodities, and real estate markets would also reset by the same amount, leaving only the bond market as unable to reset ?? Would wages also reset, although it would take awhile to work through? Then would not tax revenues plummet, in term of real value? Seems to me it would be financial suicde for governments to do this. But then I’m not an economist. — EK
Larry,
Tell us specific actions.
13 week U.S. Treasuries and Treasury Money Market funds not the place to be any more? What is?
I hope you don’t recommend GLD or SLV, as they are just paper and they will “correct” to the downside when the rest of Wall Street does.
Some folks think the dollar event will happen early November 2009. None of us want to suffer and have to listen to the stupid television saying “well, no one predicted this.”
If we are going to wake up some morning and find that the dollar has fallen out of bed, would it not be wise to move money out of our dollar denominated 401k accounts now and into something safer like gold or other precious metal funds?
I believe slow death for the dollar is possible. The main reason is that other countries are still holding treasury bond, asset denominated in USD, etc. Sudden death to USD also mean drastic reduce in value. Unless other countries unload major portion of their assets denominated in USD, else I don’t see sudden to the USD on the horizon.
Larry: I guess I confuse easily. But one of your recent e-mails spoke to a pullback in gold prices before a big upside. This last e-mail scares me since it appears to indicate that gold may go BIG in the near future. Is NOW the time to go big in gold? And what to do with treasuries rcommended by Martin?
Hi Larry - thank you very much for all your excellent work!
There are 3 things I would appreciate in your briefing:
1. I haven’t studies economics, so there is something that I don’t understand in your blog post: why, in a world of fiat currencies, would doubling the price of a precious metal (gold) lead to a halving of the dollar and a doubling of prices we pay for food, energy, etc? I would like to understand why that would happen because the dollar is not backed by gold.
2. I hope you will answer this question: if the G20 countries do what you’re suggesting and slash the dollar’s value by resetting the price of gold, which then causes significant price increases in food, energy, and everything we pay for, wouldn’t everything have to increase in price including our incomes? If not, I would think the potential for significant social unrest and riots is quite high. If you’re fairly sure this will happen, then how do you foresee this playing in out in society over the years following this resetting of the gold price?
3. I just want to second what Frank (09.18.09 at 1:37 pm) said above. I would appreciate it if you included in the briefing a “devils advocate” approach as well that explores the possibility that the Fed will actually try to do what they are saying they’ll do and slowly raise interest rates leading to a strengthening dollar and a sudden fall in gold. I know that this would put the Treasury in a pickle because raising interest rates means they ultimately have to pay more interest on the huge National Debt, but they might consider it the lesser of two evils. I hope you explore this possibility and explain why you think it is less likely to happen than what your are suggesting.
Thanks!
Nick
Hi Larry,
I have followed your columns for several years. They are great! I think you and Sean are the best.
What would help the most would be a detailed plan, what to do today, next week, next month ect.
ie. when do we buy gold?? I bought and sold the hedges as indicated (at a loss) and dumped all my gold funds when said to hedge because I feared a decline to $820.
Thank you.
Regards,
Ken Douglas
Those of us who have only a little money { 10k or so } really are getting ‘panicky’ about what ‘might be’. One thing that would be helpful to me is for you to mention either the names of banks or a source for names of a few trustworthy banks that thos of us who con’t have a lot of money can set up an account to defend what little we have.
I am aware of Eber Bank and will ask there for acct info, but they may not accommodate us who have little.
Lloyd Miller
What can I do to eliminate unseen losses. What is the most reliable investment I can make without jeopardizing my assets value.
Obviously, it appears a wise person needs to have their assets in something that will hold its value. So do I begin to purchase and store precious metals or what? Or, do I get into the currency trading business or what?
Do I need to begin buying gold bullion? If so, how safe is it to store it in my home? My Safe Deposit Box? or somewhere else?
Or, how about silver? or some other precious metal?
In the 1930s, President Roosevelt confiscated all the gold held by private individuals. If that same thing happens again with President Obama, do we hide the gold from the government?
What does a retired person do when 3/4 or more of their retirement comes from Social Security and another government annuity?
I own some gold stocks. I don’t own any of the actual metal–what am I going to do with it?! Walmart won’t accept it–I can’t buy gas with it–my utility company will not let me pay my monthly bill with it. Can’t you recommend something else beside owning gold? How about exchanging for some other countrys’ currency. Or when the USD bites the dust–will foreign currency not suffer even more than the U.S.? And, how about all those recommendations to buy T-Bills—what’s with that if the value is cut by 50%? Who needs that kind of security?
Dick
Larry,
Should we follow China’s steps? Buy natural resources, gold, silver, copper, oil, natural gas etc? Are we to get out of dollars and into other currencies and how? Go exchange at the nearest international airports? Should we borrow money to buy these assets since the borrowed money could be worth half and sell half our assets to pay the debt and keep the other half safe? Do we need to stock up on perishables too? So many questions and such a sense of urgency it’s frightening. Larry, we’re all counting on you!
Those of us who have only a little money { 10k or so } really are getting ‘panicky’ about what ‘might be’. One thing that would be helpful to me is for you to mention either the names of banks or a source for names of a few trustworthy banks that those of us who don’t have a lot of money can set up an account to defend what little we have.
I am aware of Eber Bank and will ask there for acct info, but they may not accommodate us who have little.
Thanks so, so much for what you’re doing.
Lloyd Miller
I have stock in P&G and a couple of CDs. Should I take my gains out of the market or leave them in.
Should I cash out my CDs and buy gold? From what yout tell us there will another hit on the market sometime soon.
Thanks you,
Bill Maguire
Thanks for your info and efforts. Should we be preparing to invest our money in a basket of foreign currencies. Rita
What to invest in. For example, is a put against the Dollar agood strategy? But against what currency?
I’m lightly invested in “Global Gold” at American Century. Should I buy more or sell?
What about short term treasuries, good or bad in this case.
If everything suddenly doubles in price won’t that be economically depressive as people will be less able to afford goods and services?
Thank You,
A Kessler
As a Canadian, I would like to learn the art of buying Physical Gold. Considering Sales Tax, Capital gains Tax, Fees, Premiums etc. Which form of gold is best to buy. (New Coins, Old coins, Bullion) and where to buy it? Same Question with respect to the United States.
Gerry
If the US deficient/gdp is actually less than many other countries, especially europe why the excess fear of the collapse of the dollar? And doesn’t the lower dollar actually help American businesses get products off the shelves and sell America to oversea markets? Your group had an “international” seminar last month and clearly the US is not nearly as bad as most countries. Most of us would agree that the US needs to decrease spending or increase revenues… however how fast do we have to move? We still have a 10% unemployment. Do you think there is more risk for a collapse of gold than an upside gain? Most of your readers have been following the advise of keeping cash in the most safe investments– us treasuries, how good a bet is it to go against american currency? who has such a safe currency? I certainly would not trust the Chinese. What is the risk we may loose if we take our cash out of US dollars and buy foreign currency, such as through ETFs?
I guess my question would be summarized: How does a middle-class individual protect himself/herself? Buy bags of junk silver? circulated gold coins? gold stocks (then could they be sold–to whom–to get money to buy necessities and pay bills–utilities, etc.? OR?????
Thank you. I hope my answer does not come via adobe–seems the experts cannot figure out how to get my adobe updated
Hello Larry,
I’m in CANADA and new to the investment. I want to kow if your report will help me or it’s only for people in USA?
Thanks,
Lisa
Hi Larry,
I have positions in several DBL Long Gold ETFs ( DGP & UGL ) …………… is that OK ? Also, what other Gold related investments ( Gold Stocks, the Metal itself, GLD, any other Gold leveraged mechanisms ) would you suggest?
Thank you.
Harry
PS: Where and when can I expect to receive a reply?
If I put money in stocks incl. ETF’s in gold, silver and other commodities. What will happen to the “value” of my investment if:
a. The stock market crashes “big” time prior to the big devaluation of the dollar and other currencies? In this case I am better off waiting for the big crash and then jumping in.
b. The devaluation of the dollar occurs first prior to the stock market crash or maybe not crashing at all. In this case I am better off invested in stocks at the time.
c. We don’t know if this is one day away from happening or two years (for either of these events). This confuses the issue of what to do.
No one knows which of those situations happens first. Either way, if you pick it wrong, you are screwed. So, do we hedge our bets and go half way with each? And when do we do it?
The next confusion comes: you may feel one way but maybe someone else I also trust feels the other direction is correct. Both of you have great track records. Now I am really confused.
Doug
we should be fighting to save our countries from their NEW WORLD ORDER that they have stealthily implementing for decades. we seem more worried to find our personal safe havens, and letting the rest go to their hell. but what kind of a world will it be if so few have safe havens? see the movie, CHILDREN OF MEN, to get a visual view of what
What should I do with my mutual funds? I have a fairly diversified group of them.
I DID write you awhile ago about this. We are grateful that you are giving warning about the dollar crisis.
OUR immediate personal concern relates to the fact that our ONLY income is from S.S., a pittance of a retirement check and most importantly, from an ANNUITY from funds held by an insurance company in Texas. We need to know what will be BEST to do with that fund. It will cost us in penalty IF we wilthdraw ALL of those funds. However, IF those dollars will be relatively worthless, what to do and when?
OUR QUESTION: What do we do with the ANNUITY fund?
Hello Larry,
I’m not in strates and new to the investment. I want to know if your report will help me or it’s only for people in USA?
Thanks,
Lisa
Larry - I don’t have the answers that you want but you need to tell me what I should do. Should I buy gold, invest in gold stocks, invest in energy stocks, food stocks, invest in Asian stocks? I can do the best I can according to the amount I have to work with at the time of your recommendation. I am a conservative and prefer to follow a proven path with the least risk involved. I like your practical advice and your cautious attitude.
Betty H.
Larry:
I agree that sooner or later there will be “a new Bretton Woods”, and the result will be massive devaluation of currencies. But there will be a double whammy that I haven’t seen pointed out. Say we are savvy enough to have converted all our dollars into hard assets at just the right time; and say those assets double in nominal price as the dollar’s value drops by half. Will we then have dodged the bullet? NO, because as soon as we sell any of the assets we will have a huge tax liability from the large “gain” in nominal dollars. You can bet that the political climate will be ripe for enacting much higher confiscatory tax rates on this “windfall” made by us greedy “speculators”. Indeed, the new currency arrangement may well be announced at a time that allows very quick enactment AND IMPLEMENTATION of new tax laws, so as to minimize the opportunity to escape the “double whammy”. This is a factor to consider when you try to predict when this will come down.
Do you have advice along these lines?
Larry, I am an 86 year old retired Pension Consultant. I was President of my own firm. I have been retired for 26 years. The recent drop in the market hurt me but I am still OK. I currently have 90% of my funds in Mutual funds; 50% in equities and 50%in bond funds. Should I liquidate all of it and go into Gold or Gold funds? Frankly I”m scared Too! HELP!
Bob Lawton
I am very happy to have found you, your insight is wonderful, and you seem like a very geniune person as well. All I ask is for a little more specific advise when you are able, as well as offer a service that is priced higher than your entry services, but not the $1,000 range for more daily picks and advice.
It sounds like your saying that investing in gold is the only way to go. Is that right? Thanks!
Larry, you have done a wonderful job in the past and I believe you will in the future and that’s why I subscribe to Real Wealth and the Foundation. It has always been difficult for me to understand the currency markets and how they affect us. Is there some sort of simple way of showing me how national debt, gold, affect every American daily. You said that in the last 6 months our dollar has lost 14%. I don’t see that change. Food, oil, housing, have all gone down. I should be able to stretch my budget easier today than 6 months ago yet you say I lost 14%. If I take my savings and spend it on oil today vs last year, I could buy a whole lot more oil today. I just don’t understand.
What gives?
In my very limited experience I have seen lawsuits filed by environmental groups,that may have cost them a few hundred dollars shut down billions of dollars of work in the US. I just talked to a guy in San Diego who quit business and went to work in the public sector to avoid bankruptcy. He is now helping design a desalination plant in Mexico and pipelines to bring the water to San Diego. They just lost 30% of their water to the Delta Smelt, environmental crew. When I asked why they didn’t build the plant in San Diego because the ocean is right there he said they could not pass the california environmental standards. Affect on the environment will be the same just 100 miles south in a different country. Just one blatant example of how the environmental community is forcing our industry and jobs overseas and strangling our economy and dollar. California certainly deserves no federal bailout since they are killing their own economy along with everyone elses by encouraging,growing and exporting these groups around the USA.
Larry
In your view:-
1. Will ALL currencies be affected - even “natural resources” ones - e.g. Australian dollar - or just the weak ones - USD, GBP, EUR,? If not all, which in your view are OKish?
2. Physical gold or ETFs? Could Governments place a restriction on the traded value of EFTs e.g. GLD / GBS / PHAU limiting them to the value prior to any announcement? Is this likely?
Thanks for your advice.
Ron
Larry, Please clear up a little confusion. While you have just described a credible scenario for the demise of the dollar, The recent Foundation Alliance yesterday’s Foundation Alliance announcement recommended a buy of PowerShares DB US Dollar Index Bullish (UUP). This is a short-term recommendation, with possible exit from the position in mid-October. Is this buy in conflict with the above discussion of the dollar demise?
Larry,
You’re hit the nail on the head. I agree that this will happen overnight, more than likely on a Friday. The markets will go crazy on Monday. So, what’s the gameplan for that day and the rest of the week that follows?
The current President, by decree on that Friday night, could confiscate the gold and silver, as happen back in 1933/1934. He could make it a crime to sell the gold/silver to anyone but the government. Yes, everyone would get the Friday close price, $1,000.00 devalued dollars; but, the government would start receiving our gold on Monday at the new price. You would have 30 days to turn the gold/silver in or face jail and fines, plus confiscation of your gold. This in what happen back then. Or the government could be nice and give you $2,000.00 devalued dollars for that $2,000.00 gold starting on Monday. Scary!!!!
We need a gameplan, actually we need a War Room for the coming financial war.
Hello Larry,
I am retired. Besides owning my own home, I also own an investment property here in Oceanside, California, which is rented out and I have a small positive cash flow. The price has come down to a little below what I paid for it. I hate to sell and not get all my money out. I assume with inflation coming, the house should increase in value, as well as rents. Am I right, or should I sell the property??
I would really appreciate some clarity on this problem. Thanks for all your help in the past.
Sonja Whalley
Larry,
A most frightening scenario. What we need are specifics for a possible plan Eg, yes/no buy gold. If yes…what specifically…EFT’s? Buy China, international, etc.
Herm
I’m just a working guy. Not a lot of money invested, but do have some. A strategy for the small investor to weather this storm would be ideal. From reading the blog it’s clear that everyone has a lot to loose if and when this storm hits.
It sounds as if you are suggesting that we invest in gold. If so, tell us how to do it including in the preferred gold forms (What are our choices, advantages ), least costs, and greatest safety of purchase. What are some reputable, reasonably cost gold brokers?
Thank you!
Assuming the porice of gold will be reset, I assume thar rhe price of silver coinage will go up in the same % increase as the % increase in the golds price??? The best leverage in the reset of gold prices would be in mid and junior gold/silver stocks with proven reserves like Aurizon, nova gold, et al ??? Do you have any concers that the government will attempt to “call in” gold coinage from its’ citizens in the future??
You give mucho reasons why the dollar is not only falling, but failing! What are your recommendations?
Thank you
I. Schwartz
I am an 80 year old male, married, children grown and gone. My wife and I have accumulated approximately
$700,000 worth of assets, (savings and stocks & mutual funds), a brick home worth $300,000 today and no mortgage. Minimum life insurance, about $70,000 each. Do we chuck it all and buy gold & silver? What is the answer? Our CPA is no help, he only makes recommendations based on today’s tax laws and won’t speculate on future conditions. We need a clear path and plan, (and hopefully a schedule).
Thank you for your assistance.
Regards,
Theodore Faust
Dear Larry,
Why should resetting gold’s price affect the dollar when we are no longer tied to it?
Thanks,
Frederica Meir
Hi Larry: I am a Canadian who does business(stock options) with a U.S. broker.My account is in U.S. funds.What will happen if your scenario plays out? Thanks Rex.
Sir. We have over $80000 in anuities. What should we do?
Thank you for your help
Gilbert V M
You are saying why the dollar is falling and failing!
What is your reommendation?
I’m having a hard time understanding how the G-20 nations could arbitrarilly reset the price of gold to
$ 2000/oz. Doesn’t supply and demand play into this? Can this body of nation’s bankers just do this by edict?
I get the fact that our U.S. Dollar is being devalued because of the massive borrowing we are doing and that because of this massive amount of debt, our currency is worth less because the world is getting nervous about our ability to repay the debt. What I don’t get is that if the G-20 Nations decide to raise double the price of Gold, won’t that also impact the other debtor nations in Europe and, like us, their currency will be devalued as well? A better explanation would be helpful.
Hi
I feel that is too late for me to make any money in the market. I am 75. But is there anything I can do protect myself from the inflation to come? The only income we have is S.S. The morgage is on a fixed rate. We have no crdit cards, the only bills are the utilties, food and meds.
Thank you
James Pethe
My portfolio manager has our funds in Corporate Bonds (3 mth maturity), because he does not know what would be safe for the long term. We are retired and live off earnings. Is there a haven for us invest in and yet still draw 7-10% for our income?
Also, what happens to our mortgage and other debt if the dollar is devalued? Would our debt be halved or will our debt cost us twice as much in dollars?
Does everything you say about the economy of the US apply also to Canada.? How safe is the canadian dollar? Will it be devalued along with the US dollar?
Thanks in advance for your reply.
June
Mr Edelson, I believe you are correct in your view of the dollar demise. I have 270,000 of them in the market. All equities. I just sold GLD at a nice profit. What should I do???
I’m sorry - I meant why should resetting the price of gold affect the dollar when the dollar is no longer tied to gold?
All industri production needs raw material
Energy + Raw material + Work = Product = Gold
Floating values are Computer money, tax, house prises.
Iron, lead, cupper, oil, plutonium, potash, are deposid for production in mother earth
at decreasing amounts so are gold. There future value are there in earth only to digg up
undepending of anny devaluation of currency.
Food could only be produced by using plants on mother earth using seads to grow, but all land
are used leaving most of us starving. Food are limited to production quantaty undepending of anny devaluation of currency.
Banks are floating
Healthcare are floating
Car production are floating
House building are floating
Travel are floating
Shipping are floating
Miners are not they are solid mountains shining like gold
PCU = copper = electric cars
BHP = Iron
VALE = Iron
POT = potash = fertaliser (MOS) = Food = GIS
IPSU = Sugar = Ethanol and Food
New technolog = AAPL
Please make this list more specific and longer of stock ticker unaffected of dollar value
Hi! Love to read you’r comments every day. Can you help the brits across the water? I wish there was someone like you over here! Our problems are very similar,so listen you Americans to this great man! Regards AB
Hi Larry,
Thanks for all your help. My prime concern is for my family. I want to prepare for the coming storm.
Where do we buy gold and silver in a safe way? Store and secure it away from crooks? As for investments we do not have a lot of money, but we do have some. We are also concerned with personal security, and cheifly with that of our children! I know we are about to face very bad times.
Times when more and more desperate people.may shoot you for food , money , shelter, anything!
GOD help us all. again thank you. sincerly, Robert Rodgers
Provide a basket of stocks, in addition to ETF’s.
Larry,
If the Feds called in the gold coins in the 1930s, is there risk they may “call” in other assets like IRAs, SEPS or 401Ks? I’m thinking of something severe, but not draconian - - - like declaring a “tax” payable on the value of deferred earnings inside your retirement accounts? After all, in their view a good chunk of those earnings represent THEIR TAXES.
Far fetched? I don’t think so. Keep in mind we are no longer a republic, but a democracy where a simple majority rules. The crowd in Washington believes it can do whatever it wants regardless of the Constitution.
Annapolis, MD
Hello Larry, I really enjoy your perspective and honest outlook of what is going on in our markets…
But, I would like to know more about how this will affect the stock market in regards to the relationship of the dollar (including other countries markets verses they’re currencies), declining, which usually causes the stocks to rise? Wouldn’t this change have a dramatic effect on balance sheets?
How will this affect the currency market? One day you open up the charts and see the Euro say at 75 and the day before it was at 150? Is this what you meant by possibly cutting the currencies in half? I know that sounds a bit half baked, but I am trying to understand if Gold would be the new standard for which all currencies are based upon, and they just one day up the price of Gold to 2000
in turn devaluing global currencies, would my analogy be correct.? One more thing, do you believe this would happen on a specific date or over a long period of time? What should I be keeping an eye on so I would know this is about to happen?
Thank you for the opportunity to ask a few questions. Can’t wait to hear the rest of the story.
Patti Schmid
Hi Larry,
Interested in your upcoming briefing on minimizing portfolio damage from projected erosion of currencies. Some issues/questions:
1.I am retired, working part-time and my investment portfolio provides substantial (60%) portion of the income for living costs; what formula should I use to determine allocation to 1. cash 2, boring, but solid, dividend-paying blue chips and 3. gold and/or gold stocks for future protection of capital? (my asset mix is 65% Can. govt. bonds, 35% equity, 5% cash - currency mix is 85% CAD, 10% EUR, 5% US$)
What do I do with my IRA (it is mostly in stocks) ?
Do I buy gold now?
Larry,
I have a substantial amount of money in T bills. Should I take it out and put
it in foreign currencies and gold. Thanks.
Should I get out of my annuities, even if it means a loss, and buy gold?
I would like to know SPECIFIC places to (re)invest my money (other than hard gold). I would be in it for the long haul and want investments I can hold. I need as many specifics as you are willing to commit to.
Larry, how and where do we go to protect our money.
Thanks
Joe
I find this concept baffling. If all the G20 have cripling debts, who are their creditors? Changing the price of gold affects everyone equally, so there is no relative difference in what we owe each other. The only ones who benefit are the gold miners, and their stock holders, and do you not also double the price of silver?
Gold doesn’t buy food or pay for its production, it is the local currency that pays for the food production. American food would be grown and paid for in American dollars, and would also be purchased in American dollars, so it would not instantly double in price.
Why can not all G20 nations agree to cancel each others obligations on a multiple bi-lateral basis, until one or more country is left with residual debt, and then they can devalue to reduce the payback burden?
Hi, what would the impact be on rental real estate be: 5 rental homes, 70% current loan to value ratio, fully rented, almost a positive cash flow?. All loans fixed interest, 25 more years to amoritize.
Would the real estate double, if gold was set at $2,000 per ounce? Would the mortgage balances remain as they are? Then the loan to value ratio would be about 35%? Thanks for your bold insights and warnings, David
Hi larry,
I have a significant sum ( based on my net worth) in 401 K, brokerage accounts, bank deposits and cash. If the USD really goes to the dumpster and gold goes so high, what do we do with our liquid assets ? should we invest all of our money in commodities and precious metals ? but that would be setting up for disaster if things dont work out the way you expect. Also, i am an asian citizen, what will happen to the currency of my country, will it appreciate or depreciate against the dollar ? how do i save my family’s fortune and protect my wealth ?
Who would you suggest using for my investments?
I’ve read that a US citizen is required to notify the US government of all foreign bank and broker accounts with greater than US$10k in them. If we try to protect or assets by moving them to overseas banks and denominating in non-US dollars like swiss francs, won’t that location be tracked by the government with the possibility that they would require citizens to ‘re-patriate’ their funds or face penalties?
Does the previous suggestion by Martin W. to move funds to US Treasury notes still hold true, or will these inflate or disappear? What is your preferred currency and physical location for securing liquid assets?
Long term, if high inflation of the US dollar is a certainty, then why don’t we all just buy Inflation Protected Treasury Secureties (IPS)?
Larry, I do not have the information and recommendations I need to insulate myself and my family from this great global war on the value of my money and on my financial security. I’m a new trader (using Trade King), and since May have gotten the big picture and digest the investment advice from Weiss. Of my own money that I’m free to invest, I’ve invested (buying and holding) $1500 in silver, oil and natural gas. I have only $3500 of my own money available to invest and I’m, per your recommendation, waiting for your signal to buy the dip(s) in gold.
Concerning the sudden devaluation of the dollar (Bernacke’s solution), I’m worried about my family’s other savings and investments in investment firms, banks, employer 403 plans. How will they be affected if the dollar undergoes this “sudden death”? Should I get everything invested out of dollars? Should I cash in my 403K ($20000) and take the penalty and reinvest (I’m 58)?
What shall I do with my wife’s investments (Non-IRA and IRA) in Edward Jones mutual funds, CDs, and cash? (I’m still mostly in CDs and cash because I don’t trust this bear market rally)(lost about 1/3 last year) . Will this future dollar meltdown change your short, mid, and long range investment forecasts?
My mother-in-law has a sizable bank annuity. (She’s our ultimate backup in case of financial crisis. I most of all want to protect her money)
She has CDs for my wife and I that will not mature for 4 years. Cash them and take the penalty and reinvest?
My wife and I are still employed and have 9 years left on a good rate 15 year fixed mortgage. We are putting our daughter through college ( with a son to follow) and are going into debt to do so.
I don’t have a lot of money, but I would like to keep and grow what I have and act before it’s too late and the G-20 slashes the power of the dollar. So I’m quite concerned about our financial future and need timely information and recommendation to insulate my family as much as possible from the next financial crisis.
Thanks,
Lynn Knower
Hello Larry
I am not financially trained though I like to keep up with these frantic times and occasionally when given the opportunity, to give my opinion.
The idea that the dollar needs to be worth 50% less so America can pay back overseas debt in numerical terms with the US$.
If all of the debtor countries agreed to double the price of their gold then the dollar is now worth $2000/ounce and you would pay any US debt in gold?.
This would not please China since for every $1000 of $ credit they are owed would now be only worth $500 in terms of gold?, so if they wanted to buy a GE turbine generator it would cost them either:- twice as many US$ or half as much gold?. But would not the price of the turbine go up since it is made from dollar denominated metals?.
Does it mean that this forced $ to gold ratio is a blind alley and the US$ is actually worth less against all currencies?.
Is all of this idea part of the plan to reduce the use of the US$ as a Reserve currency?.
Thanks
Bob
What if you are retired on a Federal Gov’t pension?
So do we start buying gold and silver now???
I’m just a poor dumb peddler, but it was obvious to me a year ago that the dollar was doomed because of the out of control federal budget and the never-ending trade deficits caused by globalism. That is why I questioned Dr. Weiss’s assertion that “The dollar will be a viable currency for years to come”. He’s a lot smarter than I am, but I think he was mistaken about the dollar. It has lost value steadily since the creation of the privately owned non-Federal non-Reserve company.
Larry…you are telling what’s going to happen to the dollar. OK now that we are aware that we could wake up one morning and find our dollar savings diminished substantially. BUT WHAT CAN WE DO NOW TO PROTECT OUR HARD EARNED RETIREMENT?
Your scenario sounds reasonable, but if it comes to pass then your UDN recommendation no longer seems valid. The whole basket of currencies would be devalued, no?
I admit I am a novice on silver and gold but I am deeply concerned about the policies of the Obama program and I need for someone to help me. I am in debt due to real estate investments that I cannot now sell. I have some cash and I am being encouraged to buy silver dollars to hedge on my debt. My question is if I try to pay Bank debts with silver dollars, will the Bank only see the silver dollar as one dollar?
btt
Half of my assets are in personal realestate and the rest is in cash(CD’s etc) Where do I go from here?
Larry; I wrote yesterday but didn’t, get through apparently. My thought was, doesn’t the US with its huge majority in national gold bullion (147.1 million ounces I recently read) have a pretty good shot at influencing the ultimate solution - a new reserve currency? It’s pretty clear others are determined to change the reserve currency, but maybe there’s a way of using the clout of US gold to work a solution that presents a solution less punitive to the greenback. Any comment, or is the bullion ownership of no big help. Neil Gillespie, Nanaimo BC Canada.
What can I do with limited resources? The only thing I have is my IRA with about 30K in it. This economy is very scary and having an imperialist for a president is even more frightening.
Thank you for your time.
some advice is to buy foreign corp. adrs, foreign corps.stocks, U.S.corps with heavy international connections,but I am worried about the denomination being in dollars and not foreign currencies.Should we buy only stocks in actual foreign currencies and not purchase those in dollars?
Larry; I wrote yesterday but didn’t get through apparently. My thought was, doesn’t the US with its huge majority in national gold bullion (147.1 million ounces I recently read) have a pretty good shot at influencing the ultimate solution - a new reserve currency? It’s pretty clear others are determined to change the reserve currency, but maybe there’s a way of using the clout of US gold to work a solution that presents a solution less punitive to the greenback. Any comment, or is the bullion ownership of no big help. Neil Gillespie, Nanaimo BC Canada.
I am very concerned about the decrease in the value of our currency. I really would like specific information, not generalities, as to what to do about it to protect my family. I am currently invested in stocks which are doing well….for now. I am working hard to recoup some of my losses and am putting stops on all of my stocks.What is your plan and advice?
Let China have its way so they can dominate the world both militarily and economically.
Dear Larry, I am so glad you are there, sounding the alarm. My question is how to invest; through US stock exchanges, denominated in US dollars, or best to open accounts denominated in other currencies? Thank you, Haydon
Are you suggesting to invest in gold? How about silver? Thanks
All good questions, what was your answers when i am all cash on IRA and other cash in C.D’s.
Should I buy Gold coins, if so, where
Should I buy junk silver old coins
Should I just stock up and hunker down
Jerry
There are several issues that are critical when you bet the farm. One is are you right. The other is when will it happen. Either can cost you the farm.
There are several options from the obvious to the unthinkable. Question is, which is real, or will several options happen to some degree.
Being of the age that re-building the farm is not an option, to bet the farm would require an arguement so well thought out that it would have little risk. Then there is the question, what if you are wrong? I know what happens to me. What happens to you?
This may be a duplicate of a prior post but I am not certain the other was accepted.
As a subscriber to numerous Weiss and Edelson services, I maintain a large amount of money in Fidelity US Treasury Money Market Fund while awaiting recommendations for future investments. Your recent comments make it sound like this is not a wise place to be keeping uninvested money safe. Do you have new advice on where uninvested money should be kept to avoid the loss of purchasing power?
Please iclude specifis alternate investments which would maintain the absolute value of our savings despite the catastrophic decline of the dollar.
Would the ETF symbol GLD be one of them?
How about an inverse dollar ETF?
Also please address how existing mortgages, home values, wages, and similar holdings might be affected by a severe dollar decline.
I cannot even begin to tell you how much I as well as I am sure, all the other recipients of your e-mail, appreciate your efforts to help us. God Bless.
Mervyn J. Fonseca
Mervyn J. Fonseca
I have seen this coming for over a year now. Problem is timing. Not sure that gold will be the benchmark as that puts the Central Banks in irons after all there is only so much gold. I would estimate that there will be a global currency and each country will peg or float it’s currency against that. Commodities like oil, gas, gold, wheat etc. will be traded across borders in the new currency. The Global Dollar is the most likely name. Remember most money only exists in computers, over 90% so it is impossible to harden this against actual physical things such as gold etc. Individual countries will trade in local and Global currency.
It all comes down to belief in the system and as there is no other alternative we will all believe in it so it will probably work. It will be make believe of course but that is no different from the present situation.
Real Estate and the right commodities will be the best bet but the how and when are critical factors. Middle to end of next year would be the earliest I guess, they need a catastrophic event to usher this in. Pandemic or earthquake in US or 0/11 event would do nicely. Going to be interesting!
Hi. Larry,
I am a real new comer to stock trading. Hence, became members of Uncommon Wisdom, TFA & MCP. I am learning quite a bit from all 3 and would like to hear from you as to what specific holdings should one have to realign one’s current portfolio? Thanks.
ELK
Is there some reason why it would not work to be holding shares of natural resource and foreign companies and ETFs in regular dollar denominated shares in a U.S. brokerage when the dollar hits the skids? It would seem they would go up as fast as the dollar goes down, especially gold and oil company shares.
Larry, Is there an advantage to leaving the United States and taking up residence in one of the EU
countries? I am already a gold and silver bug.
Thanks,
I have tried a number to trading programs only to lose money. Do you know of anything that works out there?
Also, check out my website. Help me get the word out.
I found your group via “Conquer The Crash” by Prechter. I bailed out of the market last September.
He and your group saw things in a similar way last year and up until this spring.
Now you are suggesting exactly the opposite as the Elliott Wave folks.
What happened to cause this great divergence of thought in the past few months??
Thanks for any further help in avoiding financial meltdown.
I am originally from Ukraine. We used Russian ruble at time of Soviet Empire. My cousin had 20000.00 loan. When Soviet Union collapsed, value of the ruble evaporated and that created huge inflation. Wages has to be adjusted and he paid off his 20000.00 loan in one (1) month.
Do you think it may happen same here in USA when if dollar will be no longer international currency?
Thank you.
Hi Larry,
I am an avid reader of your excellent and original research. I do agree with you about the demise of the dollar, but am slightly confused that you also sent out an alert telling cycle investors to buy UUP US. I am sure that this is a discrepancy about timing. Please let me know.
All best,
Alexander
L,
I am a subscriber to Real Wealth. I know FDR debased the buck but that was when the US had a lot of gold and the currency was TIED to the buck. Now no currrency is. How can this be achieved - raising gold prices as you suggest - gold is an international commodity - it is not controlled (well, not completely) by any secret cabal.
Yes, I want to protect my purchasing power - esp as I near retirement - fixed income condition.
So far I have mostly held off gold investments since you say there is a major bottom expected in May/June next year. Not sure what top do !!!
HELP !
Larry, Hope you received my thoughts and questions yesterday. I have additional concerns:
1). Since industrial uses for Silver along with a considerble increase in investment demand, What are your thoughts about adding a store of silver along with gold as a hedge against currency collapse?
2). What are we poor consumers to do if governments do establish a $2000. price for gold which would double cost of living. Would you suggest, among other recommendations, that we lay in a store (maybe several months) of food and water? What are your suggestions (other than financial moves) for SURVIVAL.
Thanks and standing by, Ed
Larry;
Yes, I want to know how to protect my family’s investments. But, here’s the frustrating part. I’ve already purchased an annual membership in one of your company’s experts and I do receive semi-regular emails from him. But, every time you guys have one of these briefings, you discuss all the problems and things that are going wrong, but to find out specifics on what to do to protect myself, I have to buy another membership into some other program you are advertising. How many memberships do I need to buy before I get the specifics I need to know to protect myself?
If what you suggest comes about what will stop governments making private holdings of gold illegal, and reintroducing exchange controls, so as to completely stymie any private individuals attempts to escape from their mad house?
Since a large part of my portfolio is in treasury money markets, where can I put this money to protect from this devaluation except in precious metals and other commodities? Since gold is valued in dollars, would other currencies be devalued as well?
Thank You.
Pat Jordan
Interesting article. I have a 401K about 25K in a mixed portfolio based on my age and no emergency savings. I am starting to save for the emergency fund. My company currently matches 1.5 to 2 percent.
I rent and I am 50.
Should I empty part of the 401K and buy gold and with whom?
Hi Larry,
I have been wanting my husband to move his IRA (~830K) from Fisher Investments (so you know we suffered a 55% loss) to Weiss Capital Management. Do you think that that they will know the best way to preserve our wealth if the US dollar is devalued, or is the situation hopeless?
Dear Larry:
Thanks for your imput. We are Americans and have a home in the U.S. and in Canada with no debt but not much cash flow. Have been retired for 10 years and have used 40% of our retirement savings, but still have over 400 maple leaf gold coins. What is the best way to dispose of the coins, or should we hold them and for how long? Also where should we keep the coins.
We are not a little worried at this point.
Thanks,
Eugene
Let presume your statements are right , the green back is gone from one day to the next, what’s happen to the prices of stocks quoted in $US ?
Le t say XXX is quoted $25, what quotation could it be the next day ?
Thanks for your answer.
I hope that your briefing will include the percentage of our liquid assets that should be in gold, stocks and cash and the gold portion should be split to what proportions in physical gold, gold etf and mining shares.
It’s going to be an interesting ride. Fasten your seat belt everyone.
I have been reading all the Weiss reports and briefings and I still don’t know if or when I should sell my gold
mining stocks. They have done well so far, but I read that there could be a sharp decline again before another
breakout brought on by the devaluation or destruction of the dollar. Is there any way to know the right time to
sell and then the right time to buy back in?
What should we do with the money in money market funds ie fidelity spartan?
How should we structure our portfilio on a % basis?
what’s the best way to capitalize on the situation in order to perserve our capital?
Keep up yhe good work Larry.
thanks,
Jan
Larry,
Thanks for the warning.
What happens to the value of the house, the mortgage, the payments and the bank?
Seems like my questions covers the majority.
It’s really a no-brainer if someone has extra cash floating around.
In the event of a sudden demise of US $, what will happen to the existing debt of crdit card or and mortgage loan, the debt amount to be reduced at the same rate of the US $ reduction or to stay at the same loan or credit debt amount? At current market what should we buy?
Your recommendaton would be appreciated.
You may want to expond on the principles of barter. It worked rather well for our forbearers in the past
What will this huge change do to the valuation of farm land, residential property, business assets, and life savings? Will it not be devastating to people on fixed incomes? This will certainly effect everyone. Is there an upside?
If this all comes to pass suddenly, do you think it would be best to be in gold, gold and other mineral mine stocks, oil stocks, foreign stocks, or some combination of them all? What will you do with your money to protect yourself?
I am onboard with your insight and have been for some time now. Should i cash out my 401k? My company merged with another so i have the opportunity to roll my 401k into an IRA so i have more control and options (which i plan to do). I know you have said not to cash out and not move into another currency but is that still true? What currency do you project will have any stability at all or have more than any others that you would recommend. Hell, i am so disgusted with USA i am ready to cash out and move to another country, seriously - are you willing to provide any insight as to any bright landing spots?
Please provide a recommendation on how to protect my IRA account, stock holdings and money market funds that are presently being held at Schwab.
Larry,
All this is not happening to the Dollar in splendid isolation. It is world-wide. If everyone decides to depreciate at the same rate, we will all be no worse off relatively. The problem arises when some weasel state refuses to go along, intiating thereby an imbalance and a golden opportunity for arbitrage. Of course inflation will affect us all - probably to a much greater extent than anyone is currently imagining. As usual Joe and Jane will get hammered and the Govt. will get off!
I would like to know what to own that will weather the loss in value of the dollar. I already own a small amount of hard gold and silver, about 60 shares of GLD ETF.investment grade company bond trusts paying 6.5-7.5% at par, and shares in a crude oil ETN.
How will GLD and crude oil respond to a decrese in dollar value? What abut the bonds?
Interesting…In order to keep up with the immediate inflation that will be created in such a situation one would need to still be invested in quality jr explorers as takeover candidates as well as fast capital appreciation. I personally like RBY and XRA and as a longer shot CGR and have done well in this arena so far this year!
is it reasonable to buy a leap option lon gold and if so how to do it
Larry — I’ve been reading your letters about the coming (re)collapse of the market and the dollar’s demise. Where do I put my money?? I have about 35% in a “Stable Income” fund, paying 4.5%, in my 401k, 30% more in cash, 5% in GLD, and about 30% left in equity mutual funds. How do I protect the value of my money, if the dollar is devalued? Thanks, Margaret
Please telll us in simple English what you reccomend what be the most appropiate thing to do to safeguard our savings !
Thanks
I have the same questions as Jerry. Should I take cash savings and buy gold and silver. What kind of gold? What kind of silver?
Martin
Larry:
Do you think the 800 bil that the US spent in bailout that no one would account for went into a black hole that is and will be used to manipulate gold and silver? Since this is a world market that they are playing with, could the same thing be going on in the G-20 where the nations, behind closed doors, are discussing that this is the way to “control the rats” as it will look like the hand of God is doing the manipulation instead of any one country?
Gold and silver are the two metals that instantly glue together the currencies of all of the G-20. The citizenry would have a hard time pointing fingers at specific nations if all are in collusion to inflate the world currencies by manipulation of gold and silver.
Gold and Silver are now tied together at the hip like they used to be in their “price vs time” plots as they mirror each other but they are moving in the exact opposite of what they should be according to the DJIA, S&P or whatever stock market you wish to use as a barometer. Gold and Silver should move inverse to our stock markets but this is not happening. The stock markets around the world right now are echoing each other.
The Baltic Dry Index is not showing improvement so world commerce is not improving. It is hard to tell how much of the shipping is China stockpiling copper, aluminum, steel, concrete, etc or is other y commerce between countries. This stockpiling may be a way for China to quietly diversify out of dollars into “real assets” as they know that their huge populations will eventually need these commodities that are being stockpiled.
I would assume that any solid gold and silver producer or even exploration companies that have a lot of cash so as not to run out of money before they find something in he ground will be excellent hedges into what you think will happen in this world currency devaluation.
Your picking of Gold as the way to do it makes perfect sense as it is a stealth move where it will be very difficult for the “rats” to point a finger and blame any one of the G-20’s for the manipulation. Since they all are drowning in debt, gold and silver are the international currencies that need to be manipulated to make the move very opaque to follow. If all of the G-20 are in it together, it will look like a move beyond anyone’s control to the “rats” that will be used to pay the tab.
Harvey
Why not just buy gold? That sounds like a logical conclusion to your assesment. Gold is now near $1000 an ounce, so if it is bumped up to $1500 to $2000 an ounce, wouldn’t that be a safe haven?
what do you suggest i do to protect myself against the imminent demise of the dollar as outlined in your blog of september 18,2009 ? buy more gold & silver stocks & coins?
20 years ago I bought 1oz gold eagles. Cost about $385 to $475 back then. Since then they have gone up about twice their value, maybe a little more. So I don’t think they were a very good investment. However, I have kept them. It is wise to buy more at todays prices?? They are not easy to convert or spend.
Larry:
Everyone (Financial advisors/researchers, etc. want people to make and save money. Everyone wants everyone elses money to do it. So tell me, what “snipins” we hear in our email of gas rebate checks and some unknown information we do not have from Social Security that could cause us to have a regular income what exactly is it. Allow people ONE time to be in the know and be caused to insulate their funds against what you see forthcoming!!
I’m 71 and have 300K between me and being broke although I get 40K peryear in social security and pension. I’m looking for reasonable ways to preserve and grow my capital.
Thanks, Dane
ut lostLarry,
I am deeply invested in gold and gold mining ETFs. but lost several thousand today in a correction.Am in trouble?
Bernard Nadel
Canada and several Eurpean countries are currently selling debt in US dollars? How will this impact the dollar? Will this create a short term bump for an entry into the commodities?
Are the commodity ETF’s like DBA , DBC, UCO, etc. safe to trade with all the govt intervention?
“The G-20 could instantly and automatically slash the dollar’s value by HALF simply by setting the price of gold at $2,000 per ounce.”
HOW could they do that when gold is a market commodity today?????
can you let us know what to do with current investments in individual stocks and mutual funds ( roth IRA, 401K accounts, etc)? also how will this effect investments in fixed annuities?
Larry, thanks for all you do to help investors. I turn 80 in November. Wife and I lost big time by having Century Management look after our IRA accounts. We got out of that and now try to follow your Real Wealth Report for help. Current investments are: EEM; GDX; PHO; XLE; GLD. I have been considering buying ETF DBA. The killing off of the dollar value has me very scared. Should I stay in the above noted investments, but make (for us) a very large investment in gold over and above what we already have? Seems like gold is where some degree of economic safety resides.
Thanks for your help.
ARJ
Here’s some questions: How will owning US stocks (in US dollars) be affected? What percent of portfolio should be in gold & bought at what price today? Does having foreign stocks help if bought in dollars? Real estate should fare better than stocks as tangible asset, right?
Thanks,
Beth
Hi Larry;
Just checking in to see if you have posted the date of your brieing! Seems not.
Toodles,
Tom in Midlothian
Larry: I have a $170,000 life and-or health insurance policy with a $100,000 cash-in value. I also have a $112,000 annuity with a 7% cash-in penalty. If the dollar tanks, these policies will suffer from inflation/dollar collapse. Should I take the cash values, and IF SO now or when?, maybe after a signal of some sort from you guys at Weiss ?
I pose this as a general question which I’m sure many of Weisse’s subscribers would like to the answer to.
Thank you, John Gregg
Larry—–appears I have a dual problem. My medium 6 figure dividend yielding (about 9%) portfolio is up about 15%. If the market declines, do I sell to protect my values & discard my dividends, or should I hold the stocks & then very possibly face a major value drop due to devaluation? I could be screwed wither way
Dear Larry,
I’m sure I’m misunderstanding something, but I don’t see how manipulating the price of gold will be seen by leaders as a solution if our paper currency is no longer tied to the gold standard. Can you explain? Thanks very much.
Grace
Where do I put cash in a safe haven that can protect against devaluation. I am participating in your REAL WEALTH Portfolio stock purchase but only represents a small portion of liquid assets.
the whole system stinks of greed and theft!!! wallstreet has ruined our country and the hopes of millions of people that have LOVED this country!! the politions have become so corrupt and words will fully explain the demiese!! put your life in the creator of heaven and earth.
Larry, Thanks for the heads up through these troubled times. I would like to know how this will affect my country Australia, we are very closely tied to the U.S. and have very similar policies regarding running up huge govt. debt to stop or economy from a recession[?]. A fall in the value of U.S. dollars would mean our imports and oil in particular would see a significant rise in price to the consumer, our exports would be too dear as nearly all our commodities are priced via a U.S dollar rate.
For sometime now political groups in Australia have been calling on the Rudd govt. to implement a ‘Bretton Woods ‘ agreement, bankrupt the banks and pass into law a “Homeowners Protection Bill” similar to what U.S. campainer Lyndon Larouche has been saying.
Back to my question Will all govts [including Aust.] with unmanageable debt write down the value of their currency to be able to still trade in that new world order?
I have wanted for some time to invest safely in precious metals but keep getting this feeling that I have no idea who to trust to buy from. Is there a safer way than to buy coins? How does one escape the charges accompanying these purchases?
What are the ramifications as far as “paper” metals such as GLD and SLV, either shares owned or options on same? And other ETFs that only track the prices of precious metals but don’t actually warehouse the metals?
Ray
Other tahn gold, what other investments should be made?
It seems preferable not to reduce principal (if one is able) on a home mortgage currently, but wait and do so with cheaper dollars. Is this thinking correct?
All new mashines for production are alreaddy globaly exsported
from factories in Europe to China leaving empty factories with open doors
and older mashines and kicked workers.
So the only thing are to start the production again with the old mashines and kicked workers
and compeet with the production from the new mashines exsported to China.
So the dollar and Euro are alreaddy devaluated to pesos when the mashines was exsported
in wood boxes for trailers to load ships for China.
If not the mashines was exsported then thoductione was baught by ……..
or coppied by…..
to get know how…….
or the mines was baugt by…
or the farming land in Africa was baught by…..
or Hawai was baugth by ….. to pay the depth of …….
Larry,
I would like to see specific, detailed advice or methods to invest our cash. If we need to hold assets in precious metals, foreign currency, ETF’s, please summarize how we go about it, and explain how we would transfer that back into U.S. dollars in 5 - 10 years.
Thank you.
Will gold stocks be safe or are you suggesting that only ownership of gold in one form or fashion is the only safe hedge?
I just got your e-mail and I am worried.I am thinking all kinds of things such as riots,personel safety.You get my drift. Anyway,what to do in regards to cash holdings? I have some gold,I have some gold stocks.You are going to think I’am nuts but I also starting to stock up on some canned goods etc.I call it just in case things get out of hand. I got myself another doberman which I named Max. He is just great.I can go on and on.Got my own garden,got a coal stove as backup heat,oh and of course I got coal. Extra candles when the lights go out.Who knows whats going to happen.Sorry for the long message but what can I say. I am just trying to keep safe and take care of myself the best way that I can. Sincerely,Donna
In the current market and expected future it looks like nothing is safe from price swings. Commodities are expected to gain as the dollar declines and Asian demand increases. Foreign currencies should also be a safer place to move dollars. US equities can also spike up as the dollar declines. Many market analysis’s prefer one of the above sectors.
Why not use a three way split in the above markets and hold on until the US federal dept stabilizes at more historic levels?
Dear Larry: Thank you for your good advice. (1) Commentary on unfolding scenarios likely to take place in less than 90 days. (2) Specifc recommendations on buy and sell with a price target in anticipation of the scenario comming true. Thanks again. Clint
Hi Larry,
You certainly are a straight shooter. It sounds to me that I should be investing in an arsenal to protect the gold around my neck. I don’t know what I’m even supposed to ask at this point quite frankly.
Can you lead a path for us to follow with the wealth of your knowledge? This is my question.
Thank You,
Renee
Cash and dollar denominated intruments would seem to be most vulnerable.How does one hedge against this devaluing of the dollar and protect oneself against it not happening simutaneously ?
This might sound simplistic but would it not make sense to convert all our Dollar assets into foreign currencies that will appreciate while the dollar goes down and then convert back to the new dollars once all has stabalized? If so, I would like to know how to do that.
Thanks.
RE: 4th Horseman of the Dollar Apocalypse.
If anything will provide forewarning of the 4th horseman’s arrival it will be the technical chart of RGV (Real Gold Value) — which I defined very recently on this blogsite as (price of gold US$$) x (US$$ TWI). Early alert — a break out of > 10% above 780. Confirmation — a move to a new high above 880.
Peace ALL Ways Norton
Gold has become out of reach for many people as a currency of everyday trade (buying groceries, gas, etc). what about silver? And it seems to me that silver is under-priced at less than $20. I would think that buying some rolls of quarters would be good as a mean to survive the coming dollar collapse. I’ve heard recommendations of buying bullets and other items people will need in the near future. Does investing in gold mine companies make any sense?
Larry: I enjoy your commentary and almost always agree completely. For the upcoming briefing, what would you advise a 79 year old couple with 60% of our portfolio in muni’s, muni and corporate bond funds, and the remainder in ETF’s and stocks covering a diverse economic group, e.g. growrh, value, commodities, international equities and bonds??
For the briefing, what would be a conserative, “safe” mix of investments????
Dick D
what will happen to the price of homes? most people can’t affod to buy gold. what about silver. what can you tell us about food storage. what is the way to protect your money? I feel that the only way people can survive is by trading with each other.
My husband and I are small investors. We have stocks, a variable annuity and some cash. What do we do now that unemployment is a factor and retirement is about a year away (maybe two years now)? Is gold the answer even though it does not pay dividends? I need to know where is a safe location for our hard-earned savings. Help!
Thank you.
Folks: dont fall for the “end of the recdession news” out there!
Phase two of the Melt down is not too far away
Prudent investors who bought back in during march are now taking their profits!
even our friend Warren Buffet was caught with his pants down recently.
Make sure you have an automatic sell order in place when your stocks drop 7%.
The first golden rule of investing is not to lose money.
Rule no 2 is to not forget rule no 1.
Good Luck out there.
JD.
Larry,
My wife & I are in our late 80s and own our home. How much physical gold & silver should we own? Where can we buy it at a reasonable price? Are ETFs gld & slv as good as gold; if sold can they give us the gold or silver instead of worthless dollars? How do we do daily business in gold & silver?
Thank you
Beverley Garrett
What recommendations can you give to those of use with more limited funds, i.e. 20 - 30 K to invest? Where and how do we prepare?
As Shakespeare wrote, “first kill all lawyers”!!!
More than half my money ($) is sitting on the sidelines. To keep from losing the purchasing power, what should I do? Should it be put into gold now before the dollar goes down more?
Carl S.
Alexandria, Egypt
Larry,
If gold is set at $2,000, what does that do to the value in dollars of realestate and land holdings?
What will it do to the price of food products? Will these resources double in price?
How will blue collar workers be able to buy the necessities?
How can we best invest in natural resources now?
Daniel
Folks: dont fall for the “end of the recession news” out there!
Phase two of the Melt down is not too far away
Prudent investors who bought back in during march are now taking their profits!
even our friend Warren Buffet was caught with his pants down recently.
Make sure you have an automatic sell order in place when your stocks drop 7%.
The first golden rule of investing is not to lose money.
Rule no 2 is to not forget rule no 1.
Good Luck out there.
JD.
Larry, What do I do with some treasury bonds? Or my IRA? Is it a good idea to buy another house?
Where can a person put there money? Thank you. Barb
Hi,
Good job Larry and Co. It is sound logical enough to beleive.
So Gold is the way to go… What about Real Estate then?
I’d also like to ask about Natural Gas price. It has been in down trend for so long, Do you see any changes for this commodity in regards of dollar collapse.
Thank you in advance.
How is this going to affect stock and mutual fund values. What solutions do you see for preserving spending “checking” account money? Is e-gold a good option? What about treasury bonds?
The massive spending by Washington should be cut back now. Let the big banks take a HI AND GO out of business. We can use the small regional banks and have more trust in what they do withour money
We should remain calm. Buy a lot of rice and beans. Reduce your debt as much as possible.
Make sure you have shelter and all necessities required to survive for at least 3 years including medicine. If you have everything in an IRA leave it most of it there. Take out what you need for 3 years of expenses including taxes. Team up with your immediate and extended families and help each other as much as you can.
On the other hand have a couple of drinks and relax and let’s see what happens.
I hope the advice from the experts is better than mine!!
I have been toying with the idea of getting some gold for awhile now. I have been confused about how to utilize gold when the dollar is worthless…ie how to survive on a day to day basis with gold bullion, coins, etc sitting in a safe vault. Also, I need to know the best form of gold to purchase, and from what source?
Thanks,
As a new investor I would like to know if advice given in 21st Superpower Trader still holds in light of new developments regarding possible change in price of gold.
What will happen at the G20 meeting next week? All of my investments–GLD, UDN, EWJ, FXI, DIA, treasuries, money market, energy fund, precious metals fund–are all denominated in dollars. What will happen to these? I think the special briefing needs to be really soon!
What would I have to do now to protect my wealth ? Convert 80% to Gold?
larry,
i’ve have 63,000.00 in ira cds tied up for 3 yrs and a rential house worth 85,ooo could sale. help
As far as the dollar collapse and where to put money - perhaps in Canadian and Australian dollars because they have more natural resource based economies? I am afraid of investing in China because the things I am reading about China lead me to believe their current “success” is pretty much smoke and mirrors: literally 10’s of millions unemployed in the Guandon (sp?) province alone, 91 million square meters (979 million square feet!) of Chinese apartment space unoccupied at the end of 2008, another 587 million square meters built over the last 5 years but sold and vacant!, 20% of commercial office space vacant in Bejing, 25% vacant in Shanghai, incredibly massive speculation in raw materials and construction made with cheap loans. The US consumer isn’t going to be coming back for many years (he may never be able to afford to) and the same goes for Western Europe - we all will be saddled with incredible government debt (taxes). And if the consumer doesn’t come back, China’s bubble will pop - their days are probably numbered. Remember the statistics coming from our own government are skewed, why should we believe what the Chinese are telling us about theirs - their media and reporting is all state-controlled. I am very concerned about the collapse of the dollar and I don’t want my savings to lose buying power! Yes, I agree, inflation/devaluation is the government’s only solution, but is that just going to apply equally to most currencies? I am looking forward to your briefing.
LARRY,
WHERE SHOULD I INVEST TO PROTECT MY MONEY?
I’m heavily invested in gold and mining shares based on your advice and others but it is in US dollers.
If gold goes up but the doller goes down I’m just spinning my wheels.
How do I best maximize my investetments?
I am about to retire within two years, one if i’m lucky. I have a 459 plan that is pretty diversified but leans a bit to the agressive side of investments. With the drop in value in these investment areas, I have lost quite a bit in value. I don’t want to sell now because I am buying at a lower price and getting more shares which are slowly climbing. But with the threat of our declining economy and dollar value, where do I go from here? Do I change my investments to a lower more stable yield or do I invest in foreign complanies in hope that they are more solid than our situation? I have tried to get our managers of our port-folios to give me direction, and all they say is wait it out, it will get better. I see your indicators that we are in for a meltdown and now how do I protect myself? Help
is the answer as simple as buying “physical” gold and silver? if so, what about government confiscation.
I’m heavily invested in gold and mining shares based on your advice and others but it is in US dollars.
If gold goes up but the dollar goes down I’m just spinning my wheels.
How do I best maximize my investetments?
We are all looking for the same answers. How can we save what we have.
Larry,
Would you be buying fxa (aussie dollar) and fxc (canadian dollar)
More info on currency’s would be helpful
Thanks,
Dina
Aloha Larry,
Based on the scenario you have just outlined, “we the people” have found ourselves in an either/or situation. Either preserve our wealth with real money ( gold), or be prepared to take it between the running lights - period. Suggestions to enhance this position may include: 1) eliminate as much debt as possible - ones mortgage perhaps the exception 2) add as much silver bullion as possible to your portfolio, insomuch as the price is obscene compared to its EXTREME rarity - vs gold. The odds of silver being a wealth preserver are second only to gold, and it has the same historical track record of real wealth. 3) Take whatever measures are individually necessary to protect ones family during this historical transition, including but not limited to: food and medical supplies, access to a supply of the currency d’jour and basic physical protection ( LEAD…the other white metal ). 4) MENTAL PREPERATION…for some this will be the hardest.
I LOVE this country and I am PETRIFIED of our governmeent. 8(
Good Luck, God Bless and I’ll see you on the other side.
Aloha Meke Pumehana
Please include some advice to those who are no longer invest because they are well beyond retirement years with a poor health prognosis but still have some cash reserves. What would be their best option for protecting what they have remaining? Please address the advice toward a senario like a mid-70’s individual with < 5 year health prognosis & about $25,000.00.cash reserve.
Hi Larry,
I’ve been considering this exact issue for a while now. I’ve bought some gold and even more silver, but the bulk of our (my wife and I) assets is in a 401k. We’ve been good stewards of this money. We were in the market in the good years and moved to cash just before the “tech wreck”. We’ve been moving portions of the money into and out of the market at pretty much the right times ever since and haven’t experienced any big losses so far.
But a situation like this entails several potentially huge problems, which is why we’re still in the 401k and haven’t converted most of it to gold or an equivalent. First, if we take the money out of 401k in a lump sum, we’ll be taxed to death on it. Second, there’s always the distinct possibility of confiscation even if we decide to accept the tax bite. If the G20 artificially raise the gold price, you can be pretty certain they’ll want to be the ones holding all the gold!
Since this nest egg is our main means of support (especially since pensions and Social Security would be pretty much destroyed in the fallout) we can’t afford to get this wrong…
One point, though. While I definitely live in the real world and put very little past any government, it seems likely that a move like this would provoke revolution virtually world-wide. I’m not sure how the rest of the world would react, but Americans (once they are awakened from their blissful slumber) aren’t likely to take it lying down. At least with Bretton Woods, there was a war going on that the patriots could get behind, which may have made them willing to sacrifice even more than their lives. Are we going to start another World War to bring this all about? Or would it simply be a declaration of martial law? That would be a tough one to float. While I know the rabble couldn’t stand against a modern army, what army is going to go into their own country to support such treason, especially when it’s being done to themselves and their families as well? If you simply arrest everyone, who keeps the country running? Just a thought…
What do you recommend for people who do not have a lot of cash or property investments to prepare for this storm?
Enough, Edward Sweet (2;26 p.m. posting) of simplistic blamings. The defilement began long before Obama came to office. As a fellow Canadian, I see that we could very easily have seen an imploding of our financial system had Prime Minister Paul Martin not vetoed the deregulation the ‘Big 5′ banks wanted to enable them to join the big league action of American banks. Nontheless, the crisis looms large over us all, and grateful we are, Larry, for your analyses and alerts.
Currently my retirement income is in 2 401ks. The first is tied to GE stock and the second is diversified in my 2nd employer 401k with Fidelity.Over the past few weeks, my Fidelity investment porfolio has shown some positive gains.
My question to you is when or how to roll over my Fidelity 401k into gold?Which company is best and should I invest in coins or bullion. I understand some of the roll over fees can be as high as 14% plus annual storage fees.
What is your recommendation for those of us who have small 401ks. Thank you for your feed back. Claude
Larry,
I look forward to being profitable in the coming volatility of the market. You have suggested Gold Ingots as a way to hold physical gold. What is a Ingot?
And how much over spot gold shoud we pay?
Thank you,
David
Buy and store food before inflation takes off.
Larry, why is the value of the dollar impacted by the price of gold since it is no longer backed by gold?
Larry, you recommended a small gold mining company symbol GSS in your goldbreakout reprt. I am set to buy but I have not seen you mention this stock again. I was awaiting your sept report and I do not see it there as a reccommendation. Do you still reccommend it or not??I also wonder about the oil stock FTO, same scenario, buy or not? Thanks Lynne
Love your commentaries, Larry. You make alot of sense, and I hope to hear your forecast on what to expect next. Thanks, Led.
what will happen to our personal existing debt (mortgages, cc’s etc)? any chance some debt would be wiped away through this process?
What does the small individual investor do? With a house going under water, with less than 10K retirement fund, and with some investments in gold and silver stocks and ETFs, what would be the best strategy? Convert what I can into hard assets, such as physical gold and silver, and then sell the stocks on the highs and likewise convert to hard assets?
Martin Armstrong suggests a two tier international system is coming. A new World Reserve Currency not based on any country on top for trade and floating rates to convert into country currency below that.
How much Gold bullion/coins should one hold as a percentage of liquid net worth?
How will $ denominated assets (i.e. U.S stocks and in particular natural resource stocks such as copper and gold mining) fare in a collapse of the US$?
Thank you!
How to wrap a big pure gold baht necklace around your neck for safety . How to buy 96.5% gold baht 14.4 grams per baht from china town for a 5 dollar charge over spot price . How you larry can set me up helping you over in Thailand .
If the government once again should confiscate gold, are there certain forms of gold (coins etc.) that arer safe from confiscation and what are the legal conditions (allowances) to carry (send) gold
out of the country before any confiscation should happen?
Hans
Hi Larry!
If US Dollar is going to lose half of its value, what currency is best to exchange to before this disaster strikes? Would other major paper currencies like British Pound or the Euro suffer the same fate? Would the Chinese Yuan be a better bet? I see many people asking about US Treasuries, will those also lose half its value?
Thank you for your excellent investment service.
Hi Larry,
Thank you for your very interesting updates and news, the question I have for you is this , I am living in southern Ireland and I would like to follow your advice re investing my small savings in gold but I have no knowledge of how to go about this, could you advise me in relation to stock brokers and how I can watch over my investment.
I am of the opinion that the Chinese have manipulated the markets and industries in order to bring about the demise of both the American and UK domination of world markets and currencies.
Many thanks again for all of your information
Ray Pope
what do you recommend, what should I do SPECIFICALLY, Larry?
I already have gold, physical, paper (GLD) and lots of mining shares. And I follow your trading recos in the Foundation Alliance memos. WHAT ELSE?
If they agree on an inter-governmental basis to “fix” the gold price as you suggest, to get rid of their debts, these governments must first stock up on bullion, correct? And in the process, don’t you think they’ll do what FDR did in 1934 (or 1935) and prohibit the possession of bullion by individuals? If they don’t they’ll instantly create two classes of citizens, the HAVE’s and the HAVE NOTs. That I believe would be untenable for most of the current governments. They would have to fear for their lives, and their own privileged positions as individuals.
Far more likely is the following, and this has happened in many countries before. They simply declare a “new dollar” overnight, at a new valuation to the old, let’s say 100:1. It happened just like that in France in 1958, it happened in Germany twice, in 1948 (I witnessed it as a child living in Germany then), and it happened in 1923 or thereabouts It happened in Italy, Argentina, China, and several other countries. It’s simple and effective. You go to the bank, hand in your $100 bill and receive one “new dollar” and the government got rid of 99% of its debt. This does not even require international agreements, the US can go it alone if she’s ready to face the consequences. She could also create a second currency, for international trade and debt retirement that would be less draconian than 100:1.
But they will not go back to the gold standard (although they should). There simply isn’t enough of it around to accomplish the debt repayments as you suggest. Forget gold. The current generation of politicians and economists will never do it, they hate gold. It takes away their power to print more “money” and steal from the people, in every country. They have all been brainwashed by John Maynard Keynes. Unless you kill them all off, send them to a Pacific island with no return ticket, or do something similarly drastic, you will not see gold re-take its place as basis of our currency - although that is exactly what the Constitution requires. We are, regrettably, beyond that point in American history.
One last thing: what do you suggest I’ll do with my physical gold if and when times become really rough, as the gold bugs expect? Do I take a hammer and chisel and knock some small flakes or nuggets off of my gold? How do you suggest I’ll use it in the supermarket? All I’ll be likely able to do is take it to a bank and exchange it for paper dollars, maybe or likely more than today, but still nothing more than paper dollars.
It’s all a wonderful dream that gold will save us. Before that happens, the government will confiscate it, and as Obama has told us many times, we’ll distribute our wealth among all the people.
Maybe that’s why you hang out in Bangkok all the time, correct?
Larry,
I have a little over $500,000 in my retirement accounts (half in a traditional IRA Scottrade, and half in a company 401K. What are the best positions to move my funds into? Company 401K is limited to 1)Emerging markets, 2)U.S. Equities, 3) company stock Northrop Grumman, 4) Bonds, 5) Stable Value Fund (which is STT (Aegon insured by AIG)), 6)Small Cap, and a selection of retirement horizon funds which are just blends of stocks and bonds. Traditional IRA (Scottrade) I have more flexability. Also can one really buy gold as a hold position with IRA money and what are the charges for storing the gold year in and year out?
Thanks
Dan
Where do you recommend I make my stock buys through? Are those companies safe? Do I need to sell through them as well?
i have gov thrift savings plan all in g fund what to do? what to invest in. ?
why wait too important.?
I am currently living in Ecuador, a $ based economy. In the event of a new ‘World Currency’ being announced, do you believe that the Latin American countries will be forced to either go along with this new order, or form their own Latin American currency as many are reporting.
If this is the situation with the majority of many currencies around the world. Would it benefit us as investors to move our savings and investments to Gold Bullion investments such as in Everbank?
I would like to know of suggestions for my financial protection.
Larry, I think most anyone who are informed know that the USD is terminal. We all have been told to buy Gold and/or Silver to protect our wealth. Holding physical metals is always the best, however if one prefers not to hold the metal physically, what are his options. I specifically would like your opinion on the Perth Mint and GoldMoney.com. I am not interested in Perth unallocated or certificate program, just the allocated program for metals along with GoldMoney’s (which is only allocated) program.
Regards,
TJL
Should we exchange dollars for foreign currency,and if so which currency.
Larry,
I have 75% of my money sitting idly in 4-week TBills. I am 58 years old and have
no income, so living off modest cash reserves, which should carry me for 3 years.
- I have done well with a modest investment in gold stocks, through the advice of John Doody’s newsletter. I plan to hold this position in gold stocks and the GLD ETF for the longer haul, otherwise remaining funds are parked on the sidelines.
I am waiting for the various stock markets (US, China) to dip, perhaps (30-50)%.
I am, at the dip(s), looking to buy:
- Key infrastructure Chinese stocks (for the next 10-15 years).
I have no idea what else to invest in during the dips. I would appreciate advice on other specific stocks to purchase during global dips, as well as currency hedges that would support a decline of the US and Euro fiats.
Thank you.
Howard
Buying Gold: How does one best invest in the hard asset? What type of coins/bars/etc.?
Wondering…will non-numismatic coins be “recalled”? Where would one best
hold these assets?
I have followed, I believe, the advice of Safe Money Report, Million Dollar Contrarian Portfolio, Dividend Superstars,and Martin Weiss, when he writes, to wit:
Short-term Treasurys: 30%
Gold bullion, 6%
Gold stocks, GLD, ERF: 9%
Cash: 30%
Swiss francs: 5%
Canadian $$: 8%
A sort of “Everything-but-the-Kitchen-Sink-in-Cash Long View Portfolio.
If the dollar tanks, as you suggest is possible/likely, I will have followed the best advice I can find, and at 66 yrs old, with No Debt, still not have sufficient savings to see me through.
Do I trash the above advice and start over? Are things changing that fast? It’s scary and confusing.
Anna
evaluated other posting and my questions have already been asked
What do we do with our 401K’s
Our homes
Do we buy precious metals
What do we invest in at this time
Help
Can you reconcile for those of us that follow Harry Dent’s cycle analysis and depression predictions the conflict with your predictions and his regarding what happens to the dollar in the midst of a depression? Dent basically says that the dollar will be the only safe haven and will actually increase in value during the depression. You are saying the opposite. Can you help me here? Thanks for looking out for us.
Dear Larry,
I would like to know your short term and medium term projections on the prices of the dollar, gold, silver, and perhaps platinum and palladium as well. For example where do you think the metals, especially silver and gold, will be by the end of the year and then say by May or June of 2010? When do you think the “mania phase will begin in the metals and what are your projections for their respective tops in the long term.
I have enjoyed your video updates from “Uncommon Wisdom”. Please continue them.
Thanks,
John
assuming you are correct and i firmly believe your are what type of investments will preserve my capital assets. i currently am almost 80 liquid and if the dollar is cut in half or worse i would in an instant lose half of my capital assets.
i do have about 10% percent of my assests in hard gold coins.
i also own a considerable amount of rea lestate
what is your recomendation for protecting my liquid assets. it represents 50% of my entire holdings
My questions are similar to the others I’ve read. What direction should I take if most of my investment is in stock market mutual funds (IRA)? For a person not very familiar with investing, are there fairly simple steps that can be followed to protect oneself? Dan
more specifically - if they are watering down debt - all prices/wages go up - will we experience the same ability - higher income to pay down old debt that remains constant?
A lot us are in retirement accounts and pulling the money out would enrich the govt with 35% of our savings thus if we err in the placement of those funds we will be worse off than doing nothing at all since we will probably benefit from the higher interest rates .
In an earlier briefing you stated that your expereince with gold investing is that it tends to suck people/investors in, then decreases in value shortly thereafter - ie its extremely volatile. Given the volatility that you have expressed, how can we responsibly invest in gold as the only safe haven? Thanks.
Larry;
I am unfortunate but fortunate to be working.
I only have now less than 3K in stock. I have no property left since this economic down turn I lost my home when I permitted someone to assume the loan with a contingent home on the refinancing of the buyer.
I have my stock in Curtiss, Inc for the Swine Flu, Lumber Liquidators since they acquired China Lake project, NAK which is GOLD. Plus about 700.00 cash. I lost my appointment with the Florida Dept of Veteran Affairs and now work for the Agency of Health Care Administration a 50 k reduction in salary.
Should I buy Gold Stock?
You say, “TO YOU, that would mean food, energy and everything else you pay for every month would instantly DOUBLE in price.”
Why? I don’t see it having much effect on many domestic products, e.g. tomatoes.
I can see that holders of currency in any nation that did not tie its currency to this scheme would benefit tremendously, so I can see a lot of resistance to signing on. Whichever nation holds out makes out.
Larry, I serve as co-executor of my brother’s $200,000 trust inheritance. He depends heavily on the dividends earned on investments of this money to maintain a monthly budget. If the dollar is devalued, what can I do to ensure my brother doesn’t lose his dividends and is unable to maintain a monthly budget which includes pension and social security benefits?
Jon
Please advise the safest, least expensive method to procure bullion gold coins. Also, advise safe storage locations other than safe deposit boxes.
Larry, if gold does become the reserve currency of choice, then is it better for a person now to purchase tangible gold coins, gold certificates, or gold ETF’s?
1. What makes you so certain that gold will be the vehicle used to revalue currencies?
2. If gold is the vehicle, why won’t the GVT confiscate it as they did in the 1930’s?
3. What about Silver and other metals?
4. Please have your conference before the G 20 meets on the 24th
Can you explain how this would affect any debt that us the ordinary citizens have?…Would it be better to pay off everything we owe as quickly as possible before this happens..Or like the governments, should we max out our credit lines and mortgages and load up on any credit we have so that these debts would also be “magically” reduced when the reorganization happens?…Please explain what we should do and why, and what the consequences would be of each option….maybe max out all our credit and buy gold with the money, so that your debt is reduced AND you make a killing on gold in one fell swoop!…And what happens if they confiscate all the gold like was done during the great depression?.. I have discussed this with a few people and everyone has different opinions as to what the profitable and advantageous thing to do would be…Let us know !..Thanks!
Larry,
Thank you for your insightful input as to future investments. I am, as many others, on the sidelines invested in losing money market funds. Due to my age bonds are recommended but they could be severely impacted by the coming inflation. Gold scares the dickens out of me. I do not understand the gold market; it seems irrational. Commodies appear to be the best bet but which are the best and where.
Thank you.
larry:
I have been unable to wrap my head around what will happen to investments in gold mining stocks and gold funds as the u.s. dollar collapses. what are your thoughts?
Does this mean that property and land values would increase/double? While personal debts would, in effect, fall?
Would the value of stocks increase?
What kind of physical gold should we own (bullion coins, semi-numismatics, U.S. coins, bars) ?
How will gold ultimately be used to actually buy goods and services ?
Larry, Thanks for all you do.
When will all this fiat paper,or M-3 be put in the markets or in the public realm? Or, when will MZM happen? When will inflation start in earnest?
And, What is the best vehical to trade? As in swing trading. I love silver.
Waiting now to buy back my SLV. Or is there something better? I am long QID now.
Thanks,
Jack Lovett
Into what should we put our dollars? Thank you.
Which currency should I buy?
Larry:
Thank you for your sincere effort to help your subscribers through this difficult time.
You asked what we would like you to discuss that might prepare us for the devaluing of the dollar.
In my case, I have over $100,000 in GLD. I have about $35,000 in gold coins,( Canadian Maple Leaf
one troy ounce). I have about 1200 ounces of silver bullion. Are these good investments? If you had $500,000 in easy to liquidate funds, how much would you allocate to gold, silver and in what
percentage. What about gold mining stocks? What percentage of your portfolio?
If I understand you correctly, there is chance that when gold is revalued in terms of the world
currencies, whatever dollar valued money we have, it could be conservatively worth half as much as
it is today! Maybe the dollar will be revalued at $2000 per ounce or worse!
What if you had $200,000 in foreign currencies (Everbank) equally spread between Swiss Francs,
Japanese Yen, Norwegian Kroner, and Australian Dollars. Is owning foreign currency a good idea
if all the world currencies are going to be devalued in unison.
Should we liquidate almost everything we have and put it into gold. Wait for the devaluation and then transfer what what we need from gold into the new world currency? That is a lot of tough questions for you, but at this point those of us who have sufficient funds to live comfortably in retirement with no long term debt don’t need higher interest from our investments. We need
preservation of capital!! This evaluation is the greatest threat to our capital we have ever faced
in our lifetime. Do you think that we might ever be asked to turn in all of our gold as FDR asked us to do after the depression?
We will all be looking forward to your presentation. We believe you are one of the smartest
financial people we know along with Martin Weiss.
Thank you for all of you attention to all of our concerns.
Tom Wakefield
I have most of my cash funds invested in canadian mining stocks. I have been accumulating these since 1995 and have what I consider to be a fairly large amount of them for me.I have purchased them,and hold them at Charles Schwab.I am wondering if this is a mistake,because they are an american co. subject to the dollar.should I find a new broker in canada to transfer my account to? I would rather stay with Schwab as I have done business with them for many years and feel comfortable doing business with them. thank you in advance, Harold Draper I am a lifetime inner circle member if that makes any difference.
Are Commodities the answer?
Hi Larry, and thanks for taking my questions; after reading all the others, I’m amazed how similar they are. It seems to be based on what box are you in now (me variable annuity), and then what strategy is best. Most of my $ are in a prudential annuity. As I have read, ETF’s are key. Prudential has AST Schroder Multi Asset World Strategies (ETFs) , and AST JP Morgan International Equity. I am in some sector funds: Basic Materials, Precious Metals, Natural Resources, Industrials, and an Emerging Mkt fund. But it seems I’m limited to their funds..so going for etfs, and Int’l funds, some sector. So for now am limited, unless I cash out of the variables. Am using some ProFunds. So: how do I protect my funds from lower dollar, etc/ ? Thanks, Ken
After reading lots of posts here, if I remember anything from my MBA studies, here is my 5 cents worth if anyone cares to read it:
1. IMHO, there is NO WAY in H*** that the US dollar will be devalued by decree from a group like the G-20, UN, IMF etc. This would have to happen through the FED and it won’t ever do it because it doesn’t have the economic or political power to do it anymore- nor does the US govt. as a whole (unless maybe if it’s WWIII). Besides, our largest creditor, China, could always threaten to dump their entire trillion and a half of US dollar holdings into the global markets, which they won’t because they’ll lose their shirt. So, it’s going to be an impasse and the status quo will prevail. THE MARKETS WILL REMAIN OPEN AND CURRENCIES WILL KEEP FLOATING UP AND DOWN AGAINST EACH OTHER.
2. There is no way that Gold will be revalued at twice its’ current price in US Dollars (ie. $2,000). Both Gold and the US currency are FLOATING against each other based on SUPPLY and DEMAND and ONE CANNOT SIMPLY ELIMINATE that relationship by decree unless it is followed by draconian measures such as wholesale confiscation of all privately held gold (and other precious metals) by individuals and corporations ala THIRD REICH circa 1938. This kind of confiscation would be so draconian that in a global world such as ours now, it would have to be done on a global scale in all regions and countries along with the confiscation of all guns too… This type of scenario is too ridiculous and utopic to be considered seriously and to actually recommend to anyone that they “dump” their other assets such as real estate, land, or even stocks seems IRRESPONSIBLE to me to say the least!
3. It is scary to read some of these posts here! Come on folks, if you are retired, please don’t sell everything and buy gold. That’s absolutely ridiculous and I am sure that the good folks at Weiss Research agree with me on that at least. You should NEVER EVER put all you eggs in one basket to begin with, right? Right! That saying is still valid and will always be! For one, if you like gold or precious metals in general, buy some of it and even diversify with it (ie. silver, platinum, palladium, see my previous post on that here). Second, don’t put more than 10-20% of your money into that or any other one investment. Third, if you don’t know where to buy physical precious metals, in the US or Canada or anywhere else for that matter, just Google it by entering “precious metal dealers in San Francisco” for example. You’ll get lots of reputable dealers to choose from. The larger the dealer, usually the lower the premium.
4. Aside from any other doomsday scenario, use your common sense please and if you are buying physical precious metals; you’ll avoid the risk of having to trust some other fund or entity to store it for you. Just open a safe deposit box at a local bank and store it there (just be discreet about what you put in your box in general, ok!). If you rather want to buy shares of mining companies, then you take on additional “specific risk”, specific to the company as well as “systemic risk”, specific to the global and national politics and economies- which means that you are back in the stock market…
5. Try to diversify your investments into foreign currencies. There are different ways to do it, from just opening foreign bank accounts to buying foreign stocks and bonds. For that matter, next time you take a foreign trip - and you should since there is a whole other world out there, yes, even to Canada, just open an account there or contact your broker.
We can afford to pay off the mortgage at 5% fixed. Should we? What vehicles should our savings and 401k’s be in? Is debt bad if the dollar collapses?
Thank you. You guys are great!
Larry,
If the US currency is devalued by say 50%, what do you expect to happen to the Canadian currency which so far appears to be joined at the hip with the US currency??? In your opinion, will being in Canadian dollars be any safer than being in the US currency??? Thanks!!
I have a small CD about to mature. I am considering taking it in cash instead of re-investing. Would this be a good move? I am truly frightened with Obama’s future plans for the USA.
First would the leveraged gold etf’s such as ugl or dgp still perform if such a effort of simultaneous de-valuation worldwide occurred? Second would it be wise to incur debt prior to any de-valuation such that it would be paid back with cheaper currency? Also, do you feel the political climate would allow for a banking holiday and confiscation?
Your analysis and predictions appear very accurate, but one thing I wonder about relates to the overnight devaluation of the US dollar, as you expect can happen any day now. You say the G20 governments are pushing for this move as a relief from their overspent economies, meaning that they can attempt repayment with “cheaper currancy.” But the majority holders of all the global debt are the global bankers and other governments. So, what happens to the personal and consumer debt? Won’t I benefit also when I pay my home mortgage and car loan with the same “cheaper dollars?”
I believe all recommendations should be very specific and not couched in “investment advice speak” i.e. it seems to us that… but then again it might be this… or even that….
If things are as bad as they certainly seem to be, what is there to loose by being specific? If folks are simply left wondering then they are still in grave danger.
I recall for example that you folks reprinted the government report listing all institutions holding toxic assets and the % held by each. “SHORT THESE BABIES” would have been very helpful advise,
Should one avoid the market completely? If so, where does an investor go for income?
I believe that your readers will want to learn if you have an estimated time that dollar devaluation will take place as well as if you have any protective actions to take before it happens.
I agree with your thesis. What I need for you to specify is which investment types and which specific investments would provide a combination of the greatest returns and the greatest protection against government intrusion should our currency collapse. The “intrusion” with which I am probably most concerned is the government attempting to tax away any gains realized from such investments or, more ominously, implementing a tax on accumulated wealth.
What are the best gold stocks to buy at this time????
I hear you and others say all the time to own physical gold.I need to know exactly what that means. I need to know how much you would recommend; when I should buy it; what form I should buy it in (coins,etc.) Where would you buy it from? What would you do with it once you did buy it?
If the value of the US dollar is basicly junk. That means short term treasuries, CD’s. Bank accounts, Bonds are reduced in buying power.
What do we do know???????????
Harold
I hear a lot of advice about what to do with investment portfolios, but I have a young family. What can I do to protect the money I have in my local bank? What effect will the falling dollar have on my ability to put food on the table, clothe my kids and pay for my utilies? Planning for retirement is great, but what do I need to do to protect the immediate survival needs of my family? What will that do to the housing market?
What impact will the collapse of the dollar have on pensions and social security? What investments can we have in our IRAs to protect and grow retirement savings? I am of course talking from the perspective of someone who has already retired, and who had to retire early due to disability.
-Jane
I own an educational 501 (c) 3 non-profit.
My wife and I have created a very unusual program to teach school children literacy skills with self-learning, and humourous cartoons, taking the past 40 years. The program delivers this learning exclusively through the fine arts. We have experienced considerable interest from local public schools. We plan to work with one large school district to implement with a large grant from the government the complete the finishing details, and implement.
We know education is a priority for the President, and that all schools are suffering from budget cuts. My wife and I have taken a good portion of savings and purchesed a home in full. We have no debts, and about $70,000 invested in TIAA-CREF.
We have purchased several domains to create websites to support this educational program. Our health is excellent.
I’d appreciate suggestions…
Hi Larry,
whilst most of all this is over my head, I do read with interest what you speak of and to the layman ( of which I think there are many) what you forecast sounds like commom sense. Just watching it all of recent times,with with my simple overveiw scan of whats going down,one must agree all the indicators are there. I would like to take this oppotunity to thank you for what you do.
I purchased a years Weiss enrollment thinking I was going to get forex trading signals ,however the mental stimulas I get from being informed from my subsciption is well worth it. I would never in a million years research all this stuff,I woud be oe of the ones that wake up 24 hours later as you say ,with a shock.
n another note ,are you saying buy gold now even at this high price?? Plenty of your weiss associated counterpart have been proffessing it for a long time. Is it time???. I could use this as a forex trading signal of a type. Dollar comes down Gold goes up and vice versa!!.
So this is my request for your breifing session. Where to be with Gold.
Regards Harry Walton. ( Professional forex and share trader as from 21/9/09. My new venture)
Larry, I have all my very moderate savings in 91 day paper directly at the Federal Reserve. I would like to know if you feel it is safe there as I continue to roll over the bills every three months OR would one of the Treasury only money market funds with no charges or transaction limits such as the American Century Capital Preserve Fund 1 or Dreyfus 100% US Treasury MMF etc. be a safer choice.
Thank you for answering this question for me. Thanks also for the good advice you give your readers. Marjorie
You ask for comment:
Mine is a question, are you suggesting we convert our investments to gold purchases?
Greetings!
The sudden death scenario really seems like it will be soon judging by the news releases of our monetary handling here in the US. What best can the little guy do to protect what is spare? My Dad bought silver: coins, tableware, etc to prepare for the ‘29 depression…and we had large gardens. Now we have so little in the way of yards, growing chow is not so easily done.
Thanks for all your help.
eunice
Larry: I’d like to hear what allocation to have of cash versus investments. I’ve migrated from a country where the currency was replaced by 50,- per person in a household. People with pillow cases full of money suddenly had no more than anybody else. My parents did not talk about money with their children, but, on reflection, my father must have had investments that he could keep. I vag uely remember the drawing of a house with a diagonal through it, signifying that half of it now belonged to the state that would distribute it amongst refugees. - So, what do you say: As little cash as possible? Heidi M-B.
I’m just on a low SS income…..no opportunity that I know of. I’m 80 yrs old, and hubby is gone….what do I do with this information? Sigh.
Maybe it’s time to keep readers informed about the gold transfers from England to Hong Kong.
I never see suggestions for a retired couple in their 80’s on the best course to protect assets for one’s heirs and insure ability to pay for future care, especially if the dollar continues to lose value.
The actions, above and now started, were triggered by suggestions from your website over the last year.
Cover the benefits or otherwise of investment in gold mining shares & include other currencies such as the Australian $. Also what are the alternative investments to gold bullion bearing in mind that here in Australia the mint charges monthly holding fees for gold bullion.
If this does happen and our costs double overnight, how long will this continue, weeks, months? How do you recommend we pay for things; in dollars? Do we barter? And what about personal debt; will that be reset also? Anyone else as uneasy as I am about our dollar, and a possible world currency? The Bible mentions this happening in the end times. I certainly noticed your mention of the Horseman and the Apocalypse.
What can retired people do, age 76 & 77, on fixed retirement and social security income do to protect themselves from the falling dollar? Buying gold is a good suggestion, but what else can be done when you’re living in a sr. retirement center and only have limited excess funds to work with?
If you’re going to predict the cause & effect, what’s the specific solution for all of us who are searching for a solid, successful course of action?
Are inverse ETF’s & foreign currencies a way to profit ? If so , which ones. thank you
treasuries, euros, yen, gold, silver, What??????
I own a cattle ranch, 350 moma cows how can I best protect ranch and cattle?
Larry-
Since China is going so well economically, why not take US dollars and put them into Chinese yuan? All other currencies look to have the same problelms as the dollar.
Everbank has the ability to do this very easily.
As always, thanks for your considerable insight into this current mess.
Is gold even safe? Remember that it was confiscated by our government in the past.
please explain in more detail, how a higher gold price would effect the “domestic” value of the USD?
What currencies should we invest in?
Hi Larry, our concern is: although we have some gold, what do you recommend re. our money market dollars? Take it out, have cash in the house because the interest is next to nothing? Yes, we still have a mortgage. You advice is appreciated.
Thank you.
I was not sure when I landed in America in 1968, that we have to see this situation, in old times
they used to say this is the USA the Land of Make Believe., but from my experiences I have seen
people lie cheat and hurt each other anyway they can promise you that your savings will grow,
then they steal your money. I have lost through a company close to 50,000 each, I am doing now
myself buying stocks and writing covered calls generating cash to pay my bills. and some times
I sell puts to collect the premiums . If you say the dollar is doomed, how would you recommend
to preserve it or loose half the value.?Nick
Larry,
Re: the forum: Would really benefit from suggestions on how to protect from the expected decline in the $ or juggling by the G20. Easy to implement solutions that don’t require a high level of sophistication in Forex trading or options would be most valuable. Aside from gold/silver bullion,
does ownership of foreign mining equities provide any specific benefit vs. domestic mines??
Is one better off owning things…asset rich companies (energy, minerals, rare earth commodities,
etc. Do they provide any protection?
Please keep it reasonably simple.
Many thanks.
A Safe Money subscriber.
If holding physical gold is recommended, what do we do with our 401ks? I don’t want to pay a 50% penalty (40% tax + 10% early withdrawal). Do you have a fund you would recommend that physically holds gold for every dollar purchased?
Now is the time to restore the gold standard to the American dollar and thus will avoid the devaluation of the American dollar. President Nixon was wrong to remove that gold standard in the first place. Will our living expenses shoot though the roof? It could if we allow our American dollar to be devaluated. We the American people have the right to protest that event to protect our country and our way of life according to the Constitutional rights that were given to us by our founding fathers.
OK—so what would you invest in — corporate bonds? stocks?
OK - so should we be investing in gold, and if yes, in what form - gold mines, gold certifactes, collectable gold coins, or what elses is there?
Is there any safe foreign currency that we could snatch up at this time or do you believe when they set the “world” currency, everything will go down the tubes.
How does one survive (eat, pay mortgage, maintain a car for work, use utilities, etc.) if the dollar is instantly cut in half? My income can’t take that large of a hit!
LArry ,all I can say is looks like we are _ucked ,the world or your part of the world is in turmiol,nothing ca n save the U.S ,because of what the banks did over there,so all I can suggest is for all your readers to save ,might’n be good for the banks but it will be better for them ,looks like siolant green is becoming a reality
I have several mortgages at 8.5 and 11.5% that will adjust up if interest rates go up that are about 30% of property value. I have little reserve cash. I have reliable income that services the debt, I am trying to sell whatever possible to get out of debt because I won’t be able to service it at higher interest. Holdings are related to tourism. If I can sell it all, I plan to buy land and home in Panama. I am near retirement. Can you suggest anything else for protection? Is there a better approach?
What is the process in turning our present retirement investments into a gold investment portfolio?
What curriences are or will be affected upward or downward the most?
Larry–What you’re saying makes perfect sense to me. But what can one do when there’s household disagreement as to whether this crisis is brewing and how to fix it? With neither of us that knowledgeable in the investment world? I don’t want to just sit and watch our assets melt away.
Christy Lowry
Will this mean that medical care will also skyrocket more (due to devaluation?)
The only investment I was abled to get at this time was silver, I figured that this would happen months ago as I watched the market changes and noticed folks like Peter Schiff getting out of US markets .
Please can you tell me if silver is as good a bet as gold?
Many people do not have alot of money to invest right now, is silver a good bet for those that cannot afford to go with gold?
What else can we do to prepare for skyrocketing prices? (super inflation)
?
The dollar is going down. How goes the pound? What foreign currencies do you see as strong?
with what annual return? The fact of the matter is that only limited banks abroad are backed by
their government and only a few offer foreigners decent interest. Also taken into account must be
relative inflation. Worst in foreign banking is the way we are taxed. Any currency that goes down
is a loss one cannot claim until one cashes in the currency, something one doesn’t want to do until
one must. Is there a tax scheme that factors in loss better than $3000 a year? Can changing
citizenship be a way of avoiding high US taxes? What international banks offer viable CD rates?
Larry,
Ok, you have me sufficiently scared about the Dollars deterioration, so what can we do? It sounds like other than to stock up on Gold Stocks and Gold ETF’s we are up the perverbial creek.
Larry, in reading some of the comments posted 9/18/09, I feel there is a lot of desparation and despair out there, especially regarding the older people. Well, I’m one of them and I could have asked some of the same questions that they asked. So, I won’t ask now, I’ll look forward to the replies from you and the Wiess Team. Thank You very much. Paul Wegeman, Sr.
I am new to all this and do not have much money for investments. What % of your income should go to gold or foreign stocks. How do you buy foreign stocks? If the dollar goes kaput - what do you do with your gold?
In your opinion, would it be best to turn our dollars into gold or silver. I am in the process of cashing in a life insurance policy. it is a very large amount of money. should I immediately convert those dollars into gold or silver???
Before the subprime sabotage of the economy by Carter, Clinton and Barney Frank, we were concerned about the unfunded entitlement obligations. We know that the Social Security “trust fund” has a box full of I.O.U.’s and Medicare is even worse. If B.O. ( not the underarm type) adds more burden to healthcare spending by government, I don’t see how even $2,000 gold can help. With 20% of working age Americans out of work or off the rolls, with their jobs permanently exported, it seems like quitting smoking after the doctor tells you that you have lung cancer. If you were a benevolent dictator- what would you do?
If you are correct, our dollars (which is all we have to use for purchases) would suddenly be significantly devalued and the only obviouos solution would be have all our investments in gold? That is a huge bet? Since I am retired living mostly on fixed income trust securities and some high dividend stocks, I would have to take a chance and sell all of them to do this, but gold does not give any income return! How would I live if groceries, all required expenditures, now double?
SINCE WE ARE NO LONGER ON THE GOLD STANDARD, HOW DOES THE PRICE OF GOLD INFLUENCE THE VALUE OF THE DOLLAR. IF WE NEVER GO BACK ON THE GOLD STANDARD SOME FOLKS MIGHT GET BURNED HOLDING SO MUCH GOLD. IT WILL ALWAYS LIKELY BE A PRECIOUS METAL…HOWEVER, IT WILL NOT INFLUENCE THE VALUE OF THE DOLLAR…???
Larry:
Thanks for all the good work you are doing in the Foundation. I appreciate
your insight and opinions. I am, like others, curious on why the cycles
recommended the Dollar fund. I have ready your recent post and I guess
it makes sense.. make money short term if possible.
I also have started moving my IRA/401K to GLD, IUA and SLV. Just to have
a convenient way to hold these metals. I do have a sizable lump of cash
in a A- rated bank and am wondering should I be pulling it out and actually
buying physical gold and silver coins?
Your advice would be much appreciated..
Keep up the good work
R
Larry,
Of course, timing is everything in investments. If anybody knew for sure what was going to happen FOR SURE tomorrow in stocks, bonds, value of any currency, etc., he/she could retire in one day. Based on all the news I have been receiving over the internet (Wesis and others), the dollar will AT SOME POINT IN TIME be dead. How do we determine WHEN?
On a personal front, I have investments in term IRAs and CDs,some of which mature this year. I’ve been converting them to Money Market funds as they mature so as to be ready to act quickly should that be necessary. Question: at some point will it be prudent to cash them in early and eat the tax and other penalties? I am over 59 1/2 years old. Thanks, Richard S
Argentine, Israeli and US citizen. I experienced hyperinflation (7,000% Argentina and 2,000% in Israel). When in Argentina I survived by buying cheap silver (20 cents on the Dollar) and selling it in Europe for the full price. When in Israel, not such luck (lost my shirt). I experienced the “dollarisation” of currency (Argentina) and the consequent stock market trend: stocks linked to exports of goods jumped back almost 5,000% in a few weeks! Sold my motorcycle (at the time for the equivalent of USD $1800) and bought stock from a bank that had interests in such enterprises (Banco Francés): I rode the wave all the way to almost USD $90,000 and on top I cashed out in hard currency! I believe we should buy US goods that will keep their value in whatever hard currency or basket of currencies will eventually replace the Dollar. What do you believe is a locally produced commodity that can be bought at a “discount” price in times of inflation here in the US but sold abroad for its full value? Tough question, but key to survival for a lot of folks that do not want to invest abroad . . . .or, after all this mmbo jumbo, a CD in New Zealand Dollars perhaps?
Could you give me advice on what i should do with G.M. Stock? I retired in1985 after 36 years.Most of the time i was on salary i G.M. helped with our Stock program.They kinda matched what we had deducted from our Salary.I received Divedend checks for 23 years so i felt i did not have any of my money in the Stock..But now with what has happened what should happen to the Stock i have?
Where will the “real” S and P 500 be by the end of the year? By “real” I mean adjusted for the falling dollar. Obviously, 1000 on the S and P today does not equal 1000 last year or ten years ago in purchasing power. Tell me the same for GOLD. Ie. 1000 dollars for an ounce of Gold today is not equal to 1000 dollars back when it first crossed the 1000 dollar line. I figure today that 1000 dollars is only worth about 820 in purchasing power… Until someone talks in CONSTANT dollars, I can’t take them seriously! I wish the S and P was quoted as dollars based on a stated value like Jan first 2000. Then it could be adjusted every ten years. When the year fro adjustment came - everyone would be startled! Maybe that would put some of this borrowing and printing money into perspective for us small timers. Thanks, JohnZ
Larry,
I’m a big fan of your advise through the years,
Since you have many subscribers of different stripes maybe you could layout a
strategy for those investing 10K, 50K, 100K, 250K, 500K etc. with specifics of proportions
funds, physical assets, sectors. This would be a priceless resource to have.
Thanks
Chris
Hi Larry Would it be wise to have cash on hand during the transition and if so , how many months would you suggest?
Dear Larry,
Once again thank you for your deeply profound insight into the workings of world’s economies. It takes concern, unselfish heart and courage to keep disclosing such sensitive material as you do day by day. Don’t think for a moment that you, and us: your readers, are not being monitored for what we read and “know” about
the elite and their agenda. Unfortunately, we the small people can do nothing about it. It is too late. As it’s been said (by Hitler): “how fortunate for leaders that people don’t think”, rings so true today. Another said: “give them bread and entertainment” and they’ll be happy. How about this one: “what can you do, when in order to control people, you have to deceive them”.
You are keen to learn what people do in order to survive, salvage and prosper, even in these difficult times. I guess, most of the readers have learnt some valuable strategies from many comments sent to you. And yet, I find it so sad that so many people think its the “goods” that are important (money, silver and gold). How misleading !!!
I, for one,am doing the following: getting out of debt; helping my children to do the same; learning to live with a lot less and still be content; trying to be self sufficient; save all I can; recycle all I can; grow my own food and trust in no man, governments or “goods”.
I live in Australia, where temperate climate, good soil, reasonable rainfall and most people are still unpanicky, so there is still a some temporal sanity around. Saddly, I want to close this brief comment by stating that most people on the planet will remember 2009 as a good year, a teddybears picnick in comparison with what is yet to come in the near future. God, how I wish that I am wrong, dead wrong and all optimists and utopians right.
For once, I would be delighted to be called an old silly fool.
Take care of yourself and your family.
Robert
How can world governments set the price of gold arbitrarily at $2000/oz when gold is traded on the world commodity markets? Wouldn’t they have to confiscate all the privately held gold, or make it untradable first?
That’s how Roosevelt did it; he confiscated it first, then raised the price.
Is it time to get out of short term treasury bills?
Whats going to happen to the price of realestate if the dollar tanks?. I was also woundering what would happen to smalll businesses if they are not deeling with necessities? I think I know your answer. Were all in trouble!
what would this do to the gold and silver mining companies in terms of value?
In making your recommendations please inclue the little guy like me — retired with bulk of funds ($50M) in 13 wk Treasury and MM backed by Treasury. What do we do to protect and be able to get some kind of return.
1. What would devaluation of the dollar mean for household and business debt? Would the internal debt burden be also halved in real terms relative to wages, double, or simply stay the same?
2. What would such a devaluation mean for household and business debt in other countries, such as Canada and Australia? Your readership is international, and it would be valuable to have at times an indication of implications for those of us outside of the US.
Keep up the good work and thank you very much.
Please spell out exacly when and what to invest in as if you were to make the orders yourself. New to options, I am unsure how to capture the freefall you describe and that I witness. Help with the nuts and bolts specifics…with currency options. Please spell it out, dear expert, so that there is the perfect scenario if someone chooses to follow it, or several scenarios. When to get out….as well…and again, thanks. Please specifiy dates amounts limits and when and what to look for over the next 30-90 days in terms of getting out. thanks…as if you were developing a specific strategy with say $1000, or $500.00 to start..
WHAT CAN SOMEONE DO TO PROTECT THIER FAMILY WITH VERY LIMITED RESOURCES?
By the way the problem is framed, the only way to protect our wealth would be to sell everything and buy gold. (??)
Hi Larry
We live in Australia. We would like to get your opinion regarding the devaluation of money from an Australian perspective and what it might mean for the purchasing power of the Australian Dollar.
One fundamental that is missing this time around is that gold is not linked to the dollar, so both prices free flow in opposition to what would happen if the gold was linked to the dollar for value. I believe that there will first be a currency crisis followed by a bank crisis and then, a gold crisis whereby they will either revalue the gold or confiscate it in tandum with the currency revaluation or a creation of a new currency like the Euro. That is my concern with gold which, we know, they manipulate through the big banks. At least 40% of the current rise in the market is due to the banks investing rather than loaning, so it’s really not a free market bull; it’s tethered to the banks. They don’t care about us; they care about their profitmaking. So, how would we profit while they profit if gold, one of the current bubbles, crashes by revaluation and/or confiscation before they allow it to rise to $2000 or more as they solve the 12 Trillion dollar defecit by revaluing or substituting our currency?
What should I do with my 401k?
I have most of my IRA in gold stocks assuming that the dollar will fall and equities would do the opposite. What gold stocks or ETF;s should I be in?
I share your feelings about worldwide debt and the likely need of govt to continue devaluing the dollar.
Given this scenario…
I have a small mortgage remaining on my home. Should I keep it and make the payments for 4 more years, or take cash and pay it off ? Obviously, the cash could be invested in gold,etc.
Thanks, HL
I have tried to exactly follow y’all’s recommendations on gold.However, I seem to be long when it is going down, and short when it is going up. I am losing money on gold!
If the dollar is devalued by pegging it to $2000/oz gold, then one should start investing in gold…or gold stocks like Goldcorp or Kinross or Eldorado or?
With a depreciated $, goods and services would become proportionately more expensive. Another alternative therefore would be to invest in real estate. Or Oil. What are your thoughts?
Another concern would be that in the extreme case, banks would close temporarily and a new law would be passed making it illegal to hold gold, as happened in Germany. I don’t think this time it would go that far?
What position would China, India, Brasil etc. take if the G20 were to move to a gold standard?
Would it not be in the US’s interest to hold off for a few years and intentionally continue to inflate the $ to (a) justify pegging it to gold, and (b) to thereby make it even easier to ‘repay’ their debt? I.e. like 10 cents on the dollar?
The main questions remain: where to put one’s hard earned savings (a) safely invested and (b) with a reasonable return?
Particularly this is of major concern for retired folks, who will find it difficult if not impossible to generate cash flow.
How safe are investments in other currencies like the Can.$, or investments in Can. real estate or Oil Stocks or resorces? Canada being amongst the G20, buying Can. $s would likely cause the same losses?
I do not understand why doubling the price of gold and lowering the value of the dollar is connected. sounds like we need to have all our dollars into gold! I have a lot of corporate bonds, many are long termto 2030 etc. they pay dividends. are they at great risk? I think in the past your sugestion of how much gold in a portfolio should be 25% Is this still correct? We need to know what is safe!
I have a substantial investment in vanguard precious metals and mining fund. It has been good to us since 2001. Might it be a good place for us to keep a portion of our money going forward?
Hi Larry,
I live in Canada. How adversely would we be affected by the U.S Dollar devaluation that you’re
envisioning? In a recent Canadian media interview with Nassim Taleb (Black Swan) he indicated that Canada is more self sufficient, being a resource/energy based economy. Also Peter Schiff in his last book had a positive view of Canada in this ongoing 5-10 year recession/depression. I’d like to find some comfort in these comments, though I definitely will continue to make necessary preparations. Would the Canadian dollar be able to weather the inflationary storm? Thanks.
How can I buy gold without paying large commissions? Are gold stocks just as good? Thanks EN
Hans 09.19.09 9.21 a.m. Australia
In the likely event of a dollar devaluation, how are assets such as shares affected?
Say you have a $100.00 share at the time of change , does the value stay at $100.00 or will it self adjust quickly ( at an assumed 50% reduction- do share dollar value doubles to $200.00 ) or at a slower pace over time , assuming market conditions remain unaltered at time of change?
Hi Larry,
I live in Australia and actually own some physical Gold. Over this past 6 months of these changes in the US Dollar vs our Aussie, the end result for our physical Gold’s value has actually been negative. My question:- What might the likely monetary value effect be for countries like ours that could be left as ‘outsiders’ or just ‘co-lateral damage’ when any NEW ‘magic solution’ gets implemented? Eg. Is our Aussie dollar likely to half in purchasing power value also?
Thank you for sharing your thoughts with us all.
Larry, I appreciate your candor, the truth always is comforting though not always welcome. At least now we can start to prepare for the upcoming and ongoing turmoil. My question is: Which of the countries and currencies are the strongest if we should choose to divest in several different areas, along with Gold and Silver? After reading your information, it is obvious that China Yuan would be a good currency and I have heard that Canada, New Zealand, and Austrailia have not invested heavily into the debt derivatives ( I believe these 3 to be accurate). Can you confirm any of these 3 countries as having a sound currency and economy?
1) Can you protect PM Swiss bank accounts from IRS confiscation-please comment on new funds
2) Short of armed resistance, is there a good way to protect PM’s
3) What’s your estimate of IRS confiscation of PM stocks/ETF’s
4) How do you raise spendable cash if the coin/PM dealers are closed
Thanks.
Larry,
I have received information that American troops are being trained at military bases all over the US, to handle civil unrest. The first group completed training about 45-60 days ago. The second and “final” group will complete training on or about October 18th of this year. They are to be deployed to many American cities soon thereafter. This comes from what I believe to be, a reliable source. If in fact this is true, the timing might suggest that something major (perhaps a coordinated, worldwide currency devaluation) will transpire late Fall to early Winter. I have been told that the deployment is being perpetrated under the guise of “assisting with the swine flu epidemic”. I haven’t bought in to the seriousness of this from day one, but this would provide the perfect cover. Perhaps you have sources that can verify this. I would be interested in hearing back from you regarding this interesting development. I am not currently a subscriber to your service, but I may be in the near future. Good luck to us all.
Dale
If I own 100 shares of a foreign country ETF/Stock/Fund worth $10,000, what is my value if our government devalues the dollar by halve. How does it work? If I own a gold mining company how would that be affected?
Wall street Journal has written over and over again: It is not going to happen that fast, if ever !
US is positioned very well, according to other pages: even if the paper money disappears, it will not be end of the world for US citizens. We need some inflation any way. It seems, we will have more control, although emerging economies, will have better say, but they are not going to be in a position to hijack any agenda on their own. It still looks like a game, and we are not going to play unless we have surety we can win it.
Take it easy, there is no end of the world in sight yet.
All of the above are good questions. At 60 years of age, I’m not yet able to retire with only 80,ooo. in a retirement plan that may deminish even further than the 40% to date. So I ask how to, Where to invest or transfer funds? And within what time frame is it safe to make a move?
Correction.
Russia will buy (not but) all the assets in the US, including the White House together with O’Bum.
A great topic to discuss has been brought up in several blog comments today. If the dollar crashes fast and furious so that the govt can pay off the huge $ owed with cheap dollars, does our debt also become miniscule? I often have heard people claiming they had their parents mortgage payment but it was debt from 20 years ago and inflation had not hit the values yet. It is my understanding that banks are lending money but not factoring in hyperinflation so there is no provision for a different currency or equvilent, only dollars. Please give us your take on personal debt. Thank you
Please assume a $40,000. nest egg:
(a) Vanguard is not a bank. $20,000. there in a (closed) US Treasury MM Fund is safe?
(b) Where to put the other $20,000? Everbank and, if so, into which currency? Is this a safe transaction? If not, then where???
The news is horrible; a hypothetical noose is tightening; HELP.
I was raised in the states from ‘47 - ‘72 then moved to Canada. What I’ve discovered over the years is that Canada (which is incorporated in Washington DC, and, of course - the Big Boss - Homeland Security, is incorporated in Puerto Rico) follows the US by about 6-10 months, which indicates that we above the 49th will be in the same boat as the US.
Please share your thoughts about this.
Crystal
Larry don’t you think they will confisate gold beford litting it to the level they wont
As a retired Grandfather what financial actions should I recommend to my children and grand children???
What currency should we invest in? Brazil - Pounds, Swiss Franks, Do you recommend Silver. Do you recommend stock piling foods and other needs , Buying farm land?
Andi G
Larry, I am 76 years old and my main concern is some sort of income for the next several years. To become insolvent would be a desister for me. please develop an investment plan for the aged..
Where is the best place to buy gold, and in what form? And where is the best place to store it?
Where is the best place to buy silver, and in what form? And where is the best place to store it?
Larry,
I have come appreciate your notes and video casts, you haVE PROVEN RIGHT MANY MORE TIMES THAN WRONG. Thanks!
Here are 3 pieces of information that could help the tuned in investor mitigate the pain of a rebuked US dollar and new world currency:
1) name specific events along with something like a probability scenario that said event is a precusser to new reserve currency
2) name some alternative investments that will mitigate action and maybe even benefit from said actions. Nice to list these in some sort of tiered order such as nice to have…allthe way to absolutely necessay.
3) name countries that might benefit and those that will suffer. Certainly not all G-20 countries will benefit that same??? Also emerging markets?, US industries and sectors that will benefit and be hurt.
Example, key multinationals might actually benefit by lower dollar?
Gerry
Gold coins? stock? bars?
What do we buy and how often to build up a solid protective base for our families?
1. What to with bank and credit union savings and checking accounts?
2, What to do with several equity-oriented mutual funds and 559-B College Funds?
3. What to do with TSP funds?
4. If Gold is the answer then what percentage of total liquid net worth in G, and where to put the balance?
5. What gold investment vehicles do you recommend physical (coins, bars,etc), ETFs, Futures, Mutual Funds?
6. Can gold be bought at wholesale prices and how is it done?
6. When and how to cash out gold for cheep dollars?
Can you recommend what one should do with what is in their bank…
Foreign currencies….. which one?
If what you have written is true, why hasn’t the price of Gold or Silver shot up ?
Having read all the comments, my questions will be redundant but here goes:
We are retired and trying to stretch what little remains of our investments–the bulk of which are in cds. What can we do to protect ourselves and keep our home, which we own? Should we consider doing a reverse mortgage to free up the cash in our home so at least we will have money to live on?
Should we have gold in our portfolio and if so, how to buy it safely and where?
Thanks for your help.
Thanks for offering your help. I’m 43 and working class which I know is not your target demographic. I have watched (with disgust) as the rich get richer and the poor and working class get crumbs. This has not happened by accident, but has been planned systematically for decades to take wealth and power away from the working class. I have $ in stocks,etf’s and mutual funds, along with some cash in savings. When I’m working, I have a good rate of savings that allows me to make it thru lean times (like now). I’m getting smarter about investing and appreciate your advice about how to protect and profit from a disappearing dollar. Specific advice is preferred. Mahalo Bret
Larry,
Thanks.
What kind of physical gold should I buy and what about gold stock and other stock, US & foreign.
What about other save places to put your money. All my saving are in IRA’S and I will have to paid taxes if I pull it out.
Hey Larry!,
Thank you for trying to wake-us up by sounding the alarm and telling us what is coming right at us quickly! I appreciate this so much!
Larry, I’m just an ordinary US born citizen, blue collar working stiff. I had a pretty good retirement 401k going through my employer, (who hired an outside investment firm for us). When the recession hit, I lost the money I had into the big insurance/lending company, when it went belly-up. Still had the 401K. Tried to pull out early to save some of what I had in it, (401K), and durned if the investment company didn’t go bust! By the time the next year rolled around and the short period of time came when I could change my investments in the 401K or bail-out of it, it was late Nov. last year and by that time, I only had a couple grand left in my part of the account. I closed my part of the 401k out, cashed my part of it out, paid the penalty. So, I’m pretty well wiped-out, already! I can’t retire, guess I’ll have to work until I keel-over and they plant my dead carcass! Ain’t the first that’s had to do that, sure don’t expect I’ll be the last!
My questions are: the company I worked for, shut down, but their HQ/HR people still send me out the 401K reports on my old account, the portion they paid into, matching what I paid in, dollar-for-dollar. Last I knew, it was a pretty good sum. Since they keep asking me to close that account, how do I roll their payments in that account over, to get the money out and close that 401k account? What do I convert it too, to keep it safe if the dollar ain’t going to be worth spit anymore?
As well, if the dollar in the US is/goes bust, then, what is the best way for us working class people, to have some means of buying power, in hyper-inflation, with what wages we do bring home? Is there some way of having our pay-checks EFT’d to a safe foreign bank and converted/deposited in that foreign currency? IF so, what foreign banks and what foreign currency will be safe, if any? Is this even possible?
Last but not least: for those of us working class people, that can afford to do so right now, or very soon before the dollar goes bust; if we find work over seas, say in Asia or China, Brazil or even France, what would be wrong with us bailing out of the USA? Just garage sale all our stuff until we can ship 3-4 boxes ahead of our flight, pay to check one big bag, and take the rest in one carry-on and just move to the country we’ve found work in? I mean, if the dollar is going bust and no one here in the US is going to have any way to buy food or the basics here, because none of us blue collar working folks can afford it….What’s wrong with getting out of the US soon, while we still can and go to some country that’s still got a growing, booming economy?
Yes, China would be living under an opressive regime. But with Obama and the Democrats doing their best to drive the US economy and our freedoms, our constutional rights and liberty, right into the dirt; I really can’t see much difference between Chinas oppresive regime and the soon to be Obama oppressive regime! Kinda like comparing apples to oranges. Both taste great and eat well when they are ripe and fresh. But when they get way over ripe they both are rotten to the core! Rotten/corrupt to the core, is a fairly accurate and apt description of the present US Gov’t, President and cabinet!
Well that’s enough from me, for now Larry! Thank you folks at Weiss, for all your great advice and help!
If this is true should one buy gold now or wait until Nov. or Dec.
I believe once Gold goes through the cieling, perhaps reaching $5,000 an ounce in a massive blowoff, our government will sell 50% of our gold holdings into the rally and basically pay off our debt! Gold won’t go up forever. Jack
Larry, what assets I have is in real estate properties which I rent out to families. What would happen to rental rates and the value of real estate.I’ve always considered selling them after I retired; however I may have to rethink my plans
Thanks
RD
Declare war
Hi Larry, The price for PBW in Reall Wealth Report is nowhere near $12.55. Please update correct entry and stop prices. Thanks! PS I am over here in Vietnam and no sign of recession here either. Any market plays from this area? Thank you for your insights and help during these difficult times. Maggie
As most people I feel like the deer stairing at the head lights coming toward me and unable to move. At 57 I find myself unemployed and with no reliable income. All the alternatives for investing for income yield are too risky so I am tolally in cash. Forturnately I also saw the writing on the wall in 2005 and sold my home. I find myself wondering if I should get back into US real estate before the government reinflates the housing bobble or consider buying a home over seas for retirement. All I hear is how real estate is now affordable and it is time to get back in, but I have watched retirement real estate from speculation go up 4 fold since 2000 and a measly 30% pullback just don’t cut it. I am tired of living my life conservatively and now have to watch while everyones bad behavior gets bailed out. I could go on and on about other subjects but I am just too damn mad about it all. Thanks, from the deer in the cross hairs.
How does one make changes in investments;;e.g. mutual funds, savings to shield against that.
If the price of gold were to double, I would think that the prices of commodities & other hard assets would do likewise. But what about another class of assets, stocks ?
Essentially all my “savings” are in an IRA brokerage account. What kind of investments should be made and their relative weighting (for example x% in gold, y% in energy, etc.).
I am investing in the Rydex 2X Weakening Dollar, the U.S. Global Gold & Precious Metals Fund as well as the Van Eck Global Hard Assets (Natural Resources) fund. Are those wise moves? Should we be purchasing gold coins, gold bars and kuggerands?
If you’ve had any books published, I want to read them. Your comments make sense to me. How does a retired small timer(read little fish in the pond) convert savings from a mutual fund in money markets to gold/silver without taking another beating. An IRA doesn’t mature for 2 years. Any advice is helpful. EVK
Should one pay off their debt with extra cash or invest cash elsewhere and leave the debt?
My thought is to invest in gold, silver, and short the market.
most of our remaining money(we lost a lot in a florida ponzi scheme) is in a rollover ira and a good part of that is in fixed annuities how do we protect that?
Maybe 20k in physical gold…1 million cash equals 40 years of savings…2 million in residential real estate…nothing in stocks….don’t trust local financial advisors..widowed and don’t have a clue about what to do…Think I’m in deep doo doo.
IRAs and 401k options are limited. Mostly index funds. Not able to buy metals etc. What do you suggest? Cash out? But with a devalued dollar that doesn’t sound sensible. What of cash accounts in the bank. I do not have time to start over. I need and answer to preserve what I have to date. Help
As the price of Gold appreciates, as well as related ETFs like GLD, is there any danger that the President will confiscate Gold like FDR did in the Great Depression?
Named the top five investments (and proportions of each in a portfolio) to preserve if not exceed purchasing power change in the US over the next 3-5 years.
What are the best foreign countries for U.S. investors to invest in, to protect their wealth?
I think that we should all convert our greenbacks into Change…. ….. This is what Obama would give us .. The greenback will only be good for starting a fire . The dollar has been dying for years because of overspending - and taking care of their criminal friends . Wall Street has never been our Economy- neither are Insurance Companies nor Banks our Economy has always been American Manufacturing and the time is now to dismantle Nafta / Free Trade and take our markets back. send Communist Red China packing and bring back payroll deduction of U.S. Saving Bonds and start reinvesting in the USA and kick Obama’s Czars out………. I think that we should dismantle the Federal Reserve and round up all the members Greenspan included and put them in the town square and throw rotten eggs and tomatoes at them for starters.
THERE ARE IMPORTANT THINGS TO CONSIDER….
1) ETF’s are NOT the solution. it is a fake promise advising it is backed by gold when it isnt. the only reputable one is goldmoney com. YOU NEED THE PHYSICAL STUFF IN YOUR POSSESION! if you cant buy gold, Silver is just as good and relatively cheap, and in the short term will be the only form of currency that will be accepted (as gold is too expensive for a loaf of bread and milk.
just to add to Larry’s message, the government is about $40 Trillion in the red. Social security alone is about $20Tril, the government cant possibly afford that so they will reset the currency and all those retirees will suffer the most.
I did try to keep this short as people dont tend to read long messages. hope my message got across.
Regards
NT
Larry, Thanks for your honest and frank discussions. I hate overselling and overzealous hype.
The only thing I ask is that obviously you come from a US centric point of view for those of us living in other countries you almost need two sets of recommendations. I live in Australia and earn AUD, but also have CAD exposure so the fall of the USD has different implications. Should I short USD for example and even your stock recommendations - no use me making 10% on a stock and losing 20% on the USD exposure. I also have not heard you mention some of the bigger picture cycles recently!?
I would rather pay more for your service that get these offerings to join the secret order of whatever!
Thanks Rick
What about TBT? I thought this was a no brainer but I have continued to loose money in it. Should I continue to hold or cut my losses?
How can we prepare for the future currency if you can’tafford gold?
Is it somehow illegal to hold assets outside the U.S. that have a value (?) above %10,000, even though these assets are not the result of a brokerage account that made money? Let’s zero in on precious metals.
Larry; What is a guy to do that lives on all the money he has each month. I’m retired from the Army and work full time. I know I need to cut back on my spending and start saving, however I’m not sure were to put any money I can save.
Can you still buy CD’s from Ever Bank denominated in other currencies?
When all of your funds are in a 401K where you only have the choices of mutual funds (large cap, mid cap, small cap, foreign growth, bonds and investment contracts) what do you recommend? I don’t have the opportunity to invest in metals, etc.
How does “presidential confiscation” of privately owned gold figute in your scenario??? Thanks,,,
How is “paper gold” going to be affected? Lose value too ? Should we convert to bullion?
A LITTLE MORE INFO…
i have read some of your comments and just wanted to touch on some points.
1) The rest of the world needs to also devalue their currency to make exporting to USA cheap. At the rate of the FED printing money it is being difficult by some countries. However, it is not such a bad idea to hold a little bit of your money in other countries like Austalia etc.
2) Gold and silver coins are the best purchase as they are minted and easily recognised. and let me stress NOT GLD/ SLV ETF’s.
3)It is suggested that at least 10% of your wealth should be held in physical gold and silver.
Regards
NT
Larry, I enjoy your comments immensely. I believe your insights are exceptional. That being said, I would not only like to see hard recommendations about what to buy but also equally recommendatios about what assets to avoid.
is there a rationale to spend all my savings now on hard items while there is value in the dollar ? better to have sugar at 50 cents a pound in large quantities and other household food goods. And if so does the same hold true for electronics,(tv,computers) or hobby items. Should all the savings be spent wisely now instead of saving any? In other words,cash out before the dollar decline.
I totally agree that many large, economically mature countries are in debt to their eyebrows. There has been foreshadowing to a new world currency (IMF). Returning to the gold standard is also an option.One question I have is…why gold? What makes it so special (besides history). Maybe another rare metal will be used as the standard?? Also, another burning question..how will we know if the global powers are leaning towards an IMF? How long would it take to replace the USD as the world reserve currency?
I look forward to any advice and guidance, as always. Im a very new investor and this trading environment is starting to make me VERY nervous. I dont want to get out of trading but also dont want to lose the small nest egg Ive created so far.
Thanks for all your wisdom thus far,
Sincerely,
CB
If one new dollar is exchanged for two existing, that effectively cuts in half all wealth held in USD. But in commerce, will a salary, or social security be paid at the same rate in new dollars? My mortgage, denominated in the old dollars, would be cut in half like all other debt denominated in old dollars and bought by China. If salaries and pensions, social security, annuities are all cut in half because of the edict of 1 new dollar replacing 2 of the old, wouldn’t it be imports that double in price, while present stock in stores is only doubled in price if the owner marks up present stock, taking a windfall. Utility bills should be based on the old calculations, anything produced in the US should be on the same old cost base. Only product made with new imported parts would have a price rise. Seems to me the devalued dollar, replaced by new, would spur development and industry in an efficient manner where domestic product is far far cheaper to produce than anything imported. Wal-Mart would be doing a huge about face…. and American manufacturing and industry would have the impetus it needs to recreate itself, using domestic energy, labor and the ingenuity of american entrepreneurs, and the people from our own universities… This might be good for the country, it’s just that, those with any wealth now are immediately robbed of the product of a lifetime of work unless we can figure a place to put those dollars, namely in an industry or company, or product that will rise reborn. So do we buy stocks of energy companies, or physical commodities like generators, solar systems, demand water heaters, natural resources like gas. Not everything will go flat. Gold you can’t eat and even if not confiscated, you probably can’t cash it when you need it. If we have to barter, do we deal in boxes of toothpaste, soap and tp. Do we stock up on fertilizer and seeds? How about bags of topsoil to grow food. Somebody said 90% of the things we worry about never happen. I have been through a bunch of boom and bust cycles in my lifetime since the last big depression that traumatised my parents their whole lives thereafter, and we are still here, but the coming bust looks like it might actually be the big one. Like the seventh or a rogue wave. Common sense is helpful in these matters, but I would still like to be standing well back from the edge of the water. I don’t think cash, that used to be king, is king anymore…. what American companies are going to come back from the brink with the boost they will get from the coming currency changes, and how can we invest in them and ride with them in their lifeboat…
I have a small amount of money in various gold stocks and a dollar bear ETF. How much should I have in gold stocks, how much in physical gold? What should I do with the rest of my money? What is the liklihood of gold confiscation? How much should I have in silver? Stocks or physical? Could it be confiscated? What is the liklihood of a new currency?
So many questions. Many concerns same as the other readers and commentors. Is land (preferably with some water attached) vs property (building) a better choice, how to protect the 401K. Gold is it indeed the smartest choice if our government swings more to a “Big Brother” watcher. How can I guarantee that a holding company for my gold will not foldup or be control by external influences. Thanks
I am heavily invested in annuities with guaranteed payouts. I am 82 & retired. Should I liquidate them and take the penalities and divert my funds into something else and if so what?
I believe you are right on on your predictions.
I would like to know what investments would be good when the bottom falls out? How much precious metal should one have as a percentage of his porfolio? Will it make any differance in the kind og metal he has,i.e., gold, silver, etc.
Other than gold, what lesser known asset classes are likely to explode in value in the event of a new “One World Currency”? What socio-political and economic scenarios would likely unfold if an accelerated or sudden currency devaluation occurs? Baron Rothschild said, “Give me control over a nations currency, and I care not who makes its laws.” Who or what entity would likely control the global currency if this event takes place?
Larry:
Thanks much for the invaluable information in your lates update on the dollar. I would like to know:
1. what should we be invested in to protect our buying power
2. What should we do with real estate, domestic and foreign
3. What should we do with our cash equivalents like treasuries and mutual funds
4. What should we do with our retirement funds e.g. IRA and 401K accounts
5. What stocks should we sell and which should we purchase
Thanks, Chris
I just read some of the other blogs. Several other points are questions for me too. Like, should I max out my credit and buy tangible gold with it? Will a collapse of all currencies also make my debt cut in half? I find it hard to believe that gold ownership would overcome the insane interest that Im sure to pay on the debt. Any thoughts?
Plus, the question of commodities like oil/gas/grains/sugar…will these commodities double as they are essential to our survival at this point? (ie. gold is not)
Lastly, please try to hold your conference ASAP as I feel that things are really coming to a head in the global arena and ANY guidance would be greatly appreciated!
Bless you for your brains and I thank you deeply for your willingness to share your knowlege and honesty for the sake of others
CB
La
Would gold ETF’s increase in value comensurate with the devaluation?
Already GLD is not keeping up with the price of gold. Today (9/18/09) GLD was 98.67 while spot gold was 1006.50. What are we to make of that?
Should I withdraw my savings to make the investments you’re planning to recommend, assuming you’re going to make new recos? After all, what good is saving dollars if there is a more accessible and profitable way to spend my US money?
As far as I undestand, the price of the dollar will plunge because of the enormous U.S. Government debt.
But… you mention that many other governments are in a similar predicament. Wouldnt this mean that also their currencies will be devalued? If they all fall are we back to square one?
Obviously, I’d like to know where I can put my capital to isulate myself from the effects of the dollars devaluation. If I can make money, so much the better. I didn’t work my butt of for all these years to live in poverty in my old age.
Hi there. If every paper currency is gutted, and I have little doubt that it’s true, but that would mean that all ‘paper’ would probably suffer the same demise or near demise. IMHO the only solution is to hold gold or silver in it’s natural land real state, coin or bullion. This simplifies things a great deal, of course, it may become illegal to hold these metals and that would be another fly in the ointment. Cheers and thank you. Ken McMordie.
When do you expect this to happen? And what do you suggest?
Thanks for the up date have been reading about the problems with the Dollar right along with most in the know.
I retrived some of my money when the market fell back a while ago. Put some in a CD in my bank and bought gold and silver. coins as I have for quite a while now. Now have about 15k to consider either leaving in the bank of putting it all into Gold/silver coins. But have alot of gold now as well as silver plus alot of extra stuff I would like to convert into gold
Thats partial sets of coins etc have alot of that type of coinage that I should convert to better investments. My situation is I am retiresd and own everything divorced no kids so really doing ok based on the current situation . But appreciate any suggestions you might have. Thanks Burton Sweet
Dear Larry,
Is there any danger of the government forcing us to give up our gold as they did back in FRD’s time - supposedly to prop-up the dollar - when in reality it was given to the FED to pay its bad debts?
Rick
Hi Larry,
My concerns are about the money in a reverse mortgage and money in a retirement fund . Concerning the second, what about the taxes due from a withdrawal ? Thanks for all your past
advice and the information you supply us with. I am looking forward to your special briefing.
Bev
OF CRUCIAL IMPORTANTCE:
if obama, et. al. globals (?) deliberately devalue paper currency(ies),
what is to prevent the government(s) from imposing a punitive tax on gold, silver and other
tangibles thus offsetting what would otherwise have protected us from
the loss of purchasing power due to the devaluation; FDR confiscated gold
in the 1930s prior to the devaluation, costing gold investors 75% gains; if we can’t
protect ourselves from this proactively, we might be better of in some other
tangible less likely to be on the hit list; after all gold’s ascent is a screaming
indictment of the gross political abuse of paper money; PLEASE OFFER
SPECIFIC ADVICE; thanksl
Larry,
Indeed the U.S debt will never be repaid, but how is devaluing the currency by doubling the price of gold all of a sudden going to help the U.S and other major countries repay their debts? The U.S. does not really have gold to use for that.
Can you please explain how this help the U.S. repay its debt. Yes, all these countries should have their currencies devalued, but I have trouble understanding what is this devaluation is against if all currencies move together. Can you explain please? The total global market of gold reserves is only $1.2T, it’s peanuts. Gold is not the answer.
Inflation, that might do it, that will help repay the debts. Trouble is we are now in deflationary conditions. Is this until we print enough money to cause inflation?
Could you kindly explain the loose ends of your theory.
I think that the purchase of any pressies metal will help you out or through this uncertain times in the market
So,I amonly 45…my IRA justlost 52% during meltdown phase…now,the rest will be hit here….how in the world are wethe working poor sposed to weather this? what about the paychecks that already dont cover life…I have a little gold stashed away but not much maybe10k…
So what do we convert our dollars into? (Foreign currency, metals, etc.)
DO YOU BUY GOLD STOCKS OR GOLD COINS? WHAT DO OU SUGGEST?
I live in a 3rd world country. Seems like the Western 1st world is headed in that direction. Those who have the means have always bought ‘real’ gold (jewelry, usually) as a hedge against catastrophe. I’ve met many people who have weathered terrible storms by using gold as a medium of exchange when currency was worthless. Sounds paranoid, but is that the way to go? After all, govts and financial institutions can and will diddle with anything they are in ultimate control of (stock prices, currency, electronic currency) while gold has historically been the ‘people’s currency.’
I think everyone should own shares in an index commodity fund,Pimco has several, own oil seperately,own ETFs in gold ,GLD, and silver,SLV,
Hi Larry:
My husband is 90 years old and I am 88 and we have over $200,00 in s CD that are in for 5 years, one year is almost over, what can we do to save those dollars, please let me know, I read all you articles in the internet, and I feel you are the one to answer this guestion,
Thank You
Dorothy
Dear Larry, Thank you so much for your warnings re the dollar. One of the things I would like to know is the best contra-dollar plays in the metals: Gold Eagels and other bullion coins (or silver), vs. semi-nusmismatic coins, vs. gold stocks of specific mining companies, vs. ETFs. When the dollar is revalued, what would you rather be in? Thank you so much. Gary Caletti
What is the best thing to re-invest my CD’s in or are they safe?
If you buy gold bullion you have to pay a 28% captal gains tax for any profit no matter what your tax bracket is- ETFs have a lower rate-Pimco has a Real Return D index commodity fund that tracks the commodity index and also has TIPS, inflation protection US bonds
LARRY: COULD YOU PROVIDE SOME GUIDELINES ON PURCHASING GOLD? WHO MAY I CONSIDER THE MOST TRUSTWORTHY DEALERS? CAN YOU RECOMMEND NAMES? IS A 20% INVESTMENTSTILL ENOUGH TO CONSIDER OR SHOULD I BE THINIKING HIGHER? WHICH IS BETTER BULLION OR COIN? SHOULD I TAKE PHYSICAL POSSESSION OR LET THE DEALER WAREHOUSE IT FOR ME? WHAT ARE THE RISKS HERE? WHAT IS THE NORMAL TRANSACTION FEE FOR BUYING AND SELLING THAT I MAY EXPECT TO PAY? I AM READY TO INVEST BUTAS A NOVICE IN GOLD I AM AFRAID OF MAKING MISTAKES.
MAYBE YOU COULD DEVOTE AN ARTICLE ON BUYING GOLD OUTLINING THE RISKS AND PROVIDE ANSWERS TO FREQUENTLY ASKED QUESTIONS. WHAT SHOULD AN INVESTOR KNOW BEFORE TAKING THE PLUNGE? TRUST IS A BIG ISSUE.
YOUR ARTICLES ARE WONDERFULLY STRAIGHTFORWARD AND TIMELY. THANKS FOR PROVIDING SUCH VALUABLE INFORMATION . HOPE YOU CAN HELP ME AND OTHER NOVICES WHO WOULD LIKE TO CONSIDER GOLD AS AN INVESTMENT.
WARD AMIRAULT
Larry, I am already about 20% in gold and silver, 15% in MLP’s paying high dividends and about 18 % In good sound low debt, low P/E stocks. The balance of my liquid net worth is in U.S Dollars. Where should I put the Dollars?
Thanks,—-John
After looking through the various blog entries it seems to me the basic question is- where can we put our dollars (out of the reach of government if possible) where their value will be reasonably maintained and they will have a degree of liquidity during the economic upheaval? Additionally what do you see as the effect on the real estate market? Thanks! wb
I do not understand the logic or economics of your theory in this article. Gold has increased from $500 to $1,000 and there was no huge crisis. What is different under your scenario. Would you please explain
where to place currency during the death of the dallar?
Larry Im 57 yr old self-employed optometrist with no pension…100% on my own for retirement income. My only debt is a mortgage at 5% which I choose not to pay off. Even tho I have saved pretty good these artificially low interest rates manipulated to absurdly low levels by Greenspan and now Bernake have kept me in 3 mo t-bills for 2 yrs now but with NO GROWTH and worse yet NO INCOME!
HELP…ANY ADVICE WOULD BE GREATLY APPRECIATED…I’D LIKE TO RETIRE SOMEDAY DESPITE THE FEDS SUPERB EFFORTS TO KEEP ME BROKE!!!
I see comparisons to the Bretton Wood conference and the way FDR devalued the currency by raising the official price of gold. I don’t understand how the price of gold can be raised by decree again if the US is no longer on a gold standard. Yes, we still have an “official” price for gold, but that’s strictly fiction, and in no way reflects the price of gold on the spot market.
What is the mechanism for devaluation by raising the price of gold?
Martin and you have recommended holding substantial funds in Treasury backed money market funds. If the dollar is suddenly devalued, it will take a heck of a whack on your cash reserves. Any change in your thoughts concerning this issue?
when the trap is sprung will gold and silver stock rise thesame amount?
As you see from my email address, I am Australian. The Aussie dollar is now very strong vis-a-vis the US dollar. Short of closing my American brokerage account, how can I protect the money I have in the United States? I know the safest way would be simply to cut and run, but perhaps a suitable alternative exists. I would greatly appreciate your reply. Thank you.
What stocks and ETF’s should we be investing into at this time besides gold? What foreign stocks and ETF’s are you recommending?
Thank you.
Lee
Again– What to do with short term Treasury-3months & short term gov’t paper..??
Hold or exit to Perth Mint ??
What are the pros and cons of holding gold bullion, gold stocks, gold ETF’s? What is optimum place or places to have our money over next several months in light of this happenning?
Although I’ve chosen you as my advisor, it’s hard to sit in “safe” investments while the stock market is climbing; especially from a recent retiree who lost significant amounts last spring. I want to be able to “catch up” while the opportunity is presenting itself, yet agree fully with you that our days are numbered. In a nutshell, I have 1/2 of my assets tied up in a beach house in which I live year around, with a small mortgage. I have about 1/4 in a self directed Fidelity 401K, and the other 1/4 holding in a company vested retirement plan at 3.5%. I need to know what to do specifically. I agree with your concepts, but I need specific directions as to what to buy, how and what percentage. Similar to the “Mr. Conservative” or “Mr. Speculator plans”. The generalities are just making me more nervous about every investment and causing costly hesitation. . Thanks.
The vast majority of Americans are not wealthy and do not have an abundance of discretionary money or assets to invest in any kind of venture capital program. Most of us live on what we earn each week and maintain a moderate savings account. Therefore, is there an investment program for this level of investor that is easy to understand, enter into, and financially maintain with the intent of helping survive yet another financial catastrophe? If precious metals are recommended [which explains full page newspaper advertisements soliciting to buy our unwanted gold jewelry, watches, dental gold, etc.], which precious metals broker is the most reliable?
Thank you for considering this inquiry.
Larry,
There is only one possible solution, by any leader either from either the left or the right, that can possibly fix America’s debt problem. They would have to place every American on an austerity program. Almost like Nicolae Ceausescu did in Romania some decades ago.
For example, Nicolae limited the amount of gasoline each citizen could have and exported the rest to pay off his country’s foreign debt. He did the same for electricity, gas, food, clothes, etc. Anything you can name.
If we are to pay off our debt, we could do no less.
Another way is to sell territory. We could offer China and Japan Alaska, Hawaii and all our Pacific posessions in exchange for canceling or paying down our debt.
But, can you see any of this ever happening in the US, at least at the present time? I can’t. So, the debts will rise until there is a total financial crash. The end result may even be the break-up of the country.
We are retired and, as per Weiss and Claus Voght, have most of our funds in $ treasuries. My question mirrors those previously asked: What do we do to retain some value of our retirement funds? 50 lbs. of gold doesn’t seem reasonable, unless that’s all there is.
Hi Larry, I live in Adelaide Australia.Gold has been rising in price, Australian Dollar is very strong against the US$, resulting buying Gold in Australia you never get in front. What is you recommendation for us Aussie’s
Regards Arthur
Question:
When the trap is sprung will commodity stocks esculate equivalent to the devaluation?
Hi Larry, So based on your speculation would you suggest that we buy or invest in gold now, b4 it goes up more? If so, where is the best safest place to purchase it.
Thank you for your insightful view of the economic situation we are now faced with - especially the the probable demise of our dollars. It is my request that you give us definitive recommendations to counter the dollar demise. Thank you.
Hi Larry,
Thank you very much for today’s article.
Please explain in more detail the effect of reducing the value of the dollar has in reducing the massive debt.
Thank you
Regards,
Bob
Larry,
I’m 68 and retired. After losing 50% of my investments in September 2008, I have little funds and savings left. I have $50,000 sitting in a 3% interest fixed account and $25,000 in a bank savings account. I’ve already purchased some gold bullion, about $2,300 worth, and am thinking of buying more…possibly $10,000 to $50,000 worth. Is that wise and is there anything else I can do to protect my investment?
I don’t plan on ever investing in the stock market again. I have no IRAs or 401K plans.
Thank you for any help you can give me.
Larry, I heard we can use our IRS’s to buy gold. I have a ROTH, can I still use that? When people say buy gold, do we buy actual coins and if so, do they need to be pre 1933. If not, do you suggest we invest in GLD or GDX and thru who is reputable. Also, should we buy currency, if so which one? We don’t have a lot of money only about 38,000 and around 30,000 in ROTH. Need your advice on what to do.
Thank you,
Diane
Will other precious metals stay in lock-step with gold? Should I get out of dollar based investments? What other commodities, other than the metals, would be a good bet? Will bond/bond funds keep us above water?
Husband, wife, both in mid 80’s. Retired, pension from Federal government. Home debt free. Some variable annuities, some money market; Most assets in revocable trusts. What to do with cash in banks, with annuities. How leave something to three children and families?
If gold was to double in value and the dollar becomes extinct would not the stock market crash? If the stock market crashes would that put practically everyone out of work and put our country into a depression that would last for many many years? With all the guns in the publics hands would this not create a revolution?
I personally can not see your prediction happening, but this stupid country did elect George W. Bush too two terms as president so I guess anything is possible.
GOD save this country if you are right !!!!!!!
Congratulations to you for your expertise, analyses and recommendations on investments in these most difficult times. Gold and silver took a hit today. Somewhat of a surprise to me in view of what I understand to be increasing forces to the contrary. Hopefully, recovery is imminent, or do you believe precious metals will sink further in the short term? Do you still think the big jump in gold is a year away? Isn’t it possible intervening events could alter that prediction? My Regards a Best Wishes.
Is buying gold and silver stocks, ETF’s and the physical metals the way to go?
Or, with kids living in New Zealand, should I shift all assets the the NZ$? OR use an Everbank account?
Larry, there are always a lot of countervailing and off setting dynamics that occur with any major economic shift. What do you believe will occur to the price of real estate when the value of the dollar is cut in half?
Where is silver going on your crystal ball?
larry ,would it imply that if for example gold was to double overnite(by decree), the stock market could halve in price ? ………thks larry for your efforts..
Is it wise to hold Euros as they are n ow at 147. Will they continue to appreciate in value?
what about those of us who have followed Weiss’ advice to keep the bulk of our funds in TREASURY MONEY MARKET FUNDS as a SAFE HAVEN? WHAT NOW???
I don’t know how a small inverstor like me can weather this storm. I have transfered some of my market stock to fixed income but it is not paying that much. What is a little guy who worked hard and saved all his life supposed to do?
Please identify how much of my investment porfolio should remain in dollars for immediate emergencies and where the rest should go to protect against the collapse of the dollar.
Gold and Silver will always have some value, but it can be held in various forms and instruments. What is your recommended mix?
Are there other commodities that should also be in a well rounded investment portfolio?
I have been accumulating cash which I thought was the goal - buying no more stocks, no bonds, From what you say, my cash is soon going to be worth less than all the other parts of my retirement savings. Where should my cash be going?staying in the bank savings accounts? going to a can underground in the back yard?
It appears to be the best solution to this mess for the noninvesting public (those who do not make enough money to even invest $5,000) would cover several areas.
1) Firearms - I hate to say it, but you may need it.
2) Gold and Silver - protect your savings. This way, you can buy silver with money you won’t need during a given month, a few ounces a month over longs periods of time.
3) Food and water - Stock up before you’re forced to stand in line as a daily activity for months before you have some semblance of a “new normal.”
4) Household supplies - That would be personal bathing/showering items like soap, shampoo, scrub pads, dish soap, tooth brushes, etc.
5) Don’t forget clothes - You need something to keep you warm, and of course, you can’t run around naked.
6) As a last thing, you might stock transportation items, like extra headlights, bulbs, cans of oil, even spare parts like belts, hoses, etc.
Remember, although it’s important to have gold/silver as money, you still can’t buy food with it if the food doesn’t exist to begin with. Be sure to have that in place BEFORE you have to deal with that issue.
How do I get answers to the questions presented above?
Please, advice!
DD
Please when you discuss gold include analysis of electronic gold entities like Goldmoney and Bullion Vault as well as telling us how much we would be exposed to gold going down as well as up. A lot of people are suspicious about commentators who can only see gold going one way. Personally I like to have some stashed!
1. Will ETFs like GLD increase in value as much as gold coins and bullion? I sold my GLD shares last year, based on your recommendations in SAFE MONEY Report.
2. Do you think Obana will confiscate gold the way FDR did in 1933? Would he also get collector’s coins, etc? I personally think he will stop at nothing.
3. Would silver increase as much as gold? How about platinum?
Larry, I have most of my investments in U.S. Treasury only money market funds and gold ETF and mining. Lessor investments in commodities. Is this the time to move out of money market investments?
At 62 I am fully employed, have no debt, own my home and have a nice (albeit smaller since the market fall) IRA nest egg now sidelined in CDs of 6 mo - 2 year duration. Best advice?
OY VEH! Larry, these markets sure are making me a nervous wreck with the dollar shot
to heck.. Thankfully, I’m well overweight in the physical precious metals that I’ve been long on
since 2003.. I enjoy your commentary and analysis..please keep it coming!
Warm Regards from Vancouver British Columbia
PLEASE ADVISE US AS WHAT TO DO WITH STOCKS, MORTGAGES, ETC
Larry I know your thoughts on the real estate market but what will happen if we go into hyper inflation with several million properties on the market. Do you think real estate will take a dive? If not why not? I think the free market will boost the interest rates to all time highs and kill the real estate market. This is just my opinion.
Hello,I am very new at investing.I need not only to know what to do with my savings, BUT ALSO HOW TO DO IT; how to buy currencies ,how to by commodities etc. I have my inheritance from my parents and savings from my own labors,surely I dont want to see their value destroyed or negatively effected to any degree.I need advice on how as much as what. Thank you for your help!
I thought China and India were doing great. If so, why not use international funds as havens? Of course, what about the treasury funds recommended as safe havens so far?
Larry, how much bullion should we hold as a percentage of total portfolio? At this point, I am leaning towards 75% bullioin, 25% ETFs and miners. Recos???
1. I sold my ETF shares in GLD last year, based on your advice in SAFE MONEY Report. Should I buy them back now? Right now my investments are 50% gold coins, 25% silver coins, and 25% US short term notes.
2. Do you think Obama will confiscate all gold like FDR did in 1933? Even pre-1933 collector’s coins?
3. Would silver or platinum be safer than gold?
I liquidated nearly all my assets 3-years ago and bought gold bullion.
I have a nest egg of nearly 300K.
What should I do with it?
what happens if the U.S. passes a law that it is unlawful to own gold. what happens to gold stocks, ie foreign or domestic. what about the value of silver and oil. thank you for you wonderful leltters.
We are trying hard to keep our “cool”. I am retired and i am seeing my saving evaporating before my eyes. thank you. Irving Handelsman
Hi Larry,
Boy is all this scarey, even if we go into foreign currencies we could take a hit. What we need to know is what type of simple instruments, like mutual funds can we invest in to protect us. Any currency CDs’? How about Real Estate? Perhaps buying rentals for cash what would be the reprecusion? I am too conservative to go into anything I don’t know much about like ETFs’ and stock. Would appreciate SIMPLICITY! Thank You
I’m riding gold up on the gold price spike, then switching to oil for the coming oil spike. After that, I think we will be in a three year depression in the US so I’m going for foreign stocks (not denominated in the dollar) like emerging markets. The US treasurey bond market is beginning to collapse as is the dollar even now. The dow to gold ratio chart indicates that in real purchasing power, the US stock market has been in a silent crash for almost two years. Get out of bonds, T bills, municipal bonds, CD’s, stocks and any other dollar denominated investment now. Buy real stuff like gold, silver, oil, gas, and natural resources. Larry, I got it. I just need help with timing and specific investment names like which funds, ETF’s, or stocks would be good because I understand which sectors will be safe. And Larry, I need help with timing. When to buy what type of advice. Thanks for helping to preserve wealth. Everybody else remember to get out of gold when it spikes, before it falls.
Please explain, in simple lay language, why debased currency helps solve or alleviate the country’s debt problems. I understand that a devaluation necessitates spending more money for an asset. But if my house’s value has fallen to $100/K, my mortgage balance is $150K and then the value of my house rises, due to inflation, to $200K, I still have my $150K mortgage to pay. So how does inflation an d debasement of currency alleviate the debt problem????
What do I do with dollars in my IRA?
Hey Larry- What can the young people do to prepare? We are newly married- early 20s and don’t have alot of extra money. Do you have any tips for those just starting out with no retirement or big savings yet? Thanks for everything you are doing. Michelle
For starters should I purchase a new car asap. All material goods as well? As well a a real estate investment
Hi Larry,
I am gradually converting my US$ cash holdings to foreign currencies via Interactive Brokerage firm
& Everbank. But, how can I protect my other US$ base assets in brokerage firm like Fidelity which has no way to have my US$ assets switched to the other currencies ? Can I just go out to buy stocks
& ETFs on gold, silver, oil, commodities, currencies (like FXI, FXA for instance), & etc. so to kind of ’switching’ my US$ to the said security ‘assets’ mentioned & use them as my dollar asylum ?
Much obliged & thank you.
Regards,
Wing-Nin Ho ..
How can I get my AIG funds out ?. I am 65 and no longer work for my original company. My advisor says my funds are safe and very conservative. I hav 2 (403a)s and 2 (403 b)s accounts with this company. Only AIG is pressuring me to stay as I am. Perhaps my dollar value will remain the same but the real value will not. Would it be better to call my attorney or a financial advisor? I appreciate the newsletters. They are helpful.
I have stocks that have increased 5 to 50%: one-third approx.; one third that is essentially flat (with dividends at 11% or more); one third that are down from 10 to 50% (again with dividends that are high). Will you gear future recommendations to repositioning these three levels of my portfolio to deal with these new emerging realities.
Hi Larry, I have one more question, in regards to the global currency change. How would that affect anyone who keeps a stash of cash at home? Would you be able to still cash these dollars in without some sort of problem with the money not being kept in a bank account? I would imagine investing in real gold, silver and other metals with the money would be a good idea, but now a days you need to have that “special’ reserve for those unforeseeable events. Times are changing drastically when it comes to having control over your own money. I would like to hear your thoughts on protecting and keeping what is yours.
Thanks again.
Patti
Larry, thank you for all of your good research and suggestions. Having viewed the comments and questions above, I have nothing more to add. I look forward to reading/hearing your responses.
d,,,,,,,,,,,,,
Larry,
With all the talk about what to do with gold,…what about silver, I just made a 40% profit on SLV, while only a 12% profit on GLD, with equal amounts invested in each. Why does everyone think Gold and not silver, doesn’t silver retain it’s value the same as gold with inflation? Also, I never hear about the Government confiscating silver, do they? thanks for all you astute insight.
Are you saying I should of dollar investments and buy gold?
how will this effect real estate values in prime area of central new jersey and what year did this previously happen and what were the results than compared to real estate values, both in equity and in resale
What does that mean for debt. Should we just max out the credit cards to buy more physical gold?
Car loans mortgage? is our debt halved in real terms or not?
Larry, as the drastic reduction in the value of the dollar occurs, it is especially bad for Americans who spend their dollars overseas, or for Americans buying products being imported into the U.S. from other countries. But would it make as much difference for Americans who are spending their dollars at home and buying products and services that are mainly produced in the U.S? On second thought, since it is such an interconnected global economy, the latter would be equally affected since U.S. producers and manufacturors need to import so many goods from the global economy.
And what about the fact that most countries in the world have equally bad balance sheets as the U.S. except for a few with no debt like China- if every nation’s currency is devalued by an equal percentage would there be any difference? This might be a point to hammer home and make sure people really understand it: even if all currencies are devalued by the same percentage, (say 50% with gold being increased to $2000),will the new value of each currency really buy only 1/2 the goods and services it used to ? Peter
We have a $100,000 mortgage on our residence, at 7.25%. We can pay it off from savings. Should we?
Keep up the good work.
Wayne Berg
Other than gold and foreign currencies, what can I do to protect what’s left of my IRA? I’m 63, retired and need the money to live on.
I have just enough money for a down payment on a house. Which would be wiser, to use that money to buy the house or to invest in gold? Would it be better to purchase the house before the devaluation of the dollar, or after?
My related concerns with protection with gold are:
1. Is GLD OK vs physical gold, and
2. Would gold be confiscated by the Feds, and if so, would it be exchanged at a new globally agreed to $ value/oz?, or could it possible be confiscated earlier in the process, before the value is reset?
Would SLV be safer therefore?
Is it wise to sell gold/silver to pay off mortgage debt?
i wrote a question yesterday, still havent heard back. my next question is im trying to find some property to buy out in the country so i will be away from alot of people and so i can at least grow my food and live off the grid when its time. the banks will only start the financing at 40.000 , do you think i should still buy property, or do you think theyll end up taking it down the road after the dollar tanks? 9 16 09
It would seem that we will (may) face a similar environment to that faced by USResidents in 1933 when gold was called in (conficated by edict). It might be informative to get the full details so we might know of the parallels. Was just the metal called in? What about the other precious metals? What about funds holding gold related investments?
Also, a more scary scenario may arise if USResidents will no longer be legally able to own foreign currencies (or US$s) in overseas accounts. Shutting the window on currency transfers (and/or ownership) overseas could make a big dent on US$ losses to overseas locations. Possible? Well, I couldn’t imaginge the USTreasury being raided by Goldmand Sachs, AGI, et al, but it did happen.
One bright investment idea may be airline stocks as people “vote with their feet”.
or do you think i should just buy gold and silver and forget about property?
I’m diversified in foreign currencies. Will the Asian currencies stand up during the devaluation of western currencies?
Larry
I own some property (house and land) with a great view overlooking the harbour and yacht marina in St Georges, the capital of the Caribbean island of Grenada. I live in Canada, am in my sixties and I plan to retire here because of family connections and the superior healthcare. I have been thinking of selling this property for the past two or three years but now that there are all these predictions of the demise of the US Dollar I am wondering what is the best course of action. Do you have any idea how this is likely to affect the value of property in the West Indies. The current value of the property would be in the range of $225000 to $250000 US Dollars.
John Copland
in Toronto
Just read your article on the weekening dollar. This has been a concern of mine for over a year now since the global market went into a tail spin and the US has created all this debt. Assuming investments in stocks, bonds and guarenteed investments (cds etc), I would be interesting in hearing recommendations on how much of your portfolio you should have in stock, bonds, guarenteed and now metals (gold, silver). Also, buy actual gold or the gold funds out there, like gld.
Larry-
I have a small inheritance I want to shield from the devaluation of the dollar. I’ve been investing conservatively. What do you recommend for the future?
I also have 401K and IRAs. As you are aware, the 401K has less flexibility. What do you recommend for them, as well.
What are my other options to hedge against dollar drop.
What if gold doesn’t go up or if I don’t sell it at the right
time then as with any investment overtime I will end up
in the same spot I started.
My concern is with the safety of precious metal IRAs. What is the likelihood that the gov’t will sweep up all of the gold from the 2 IRA depositories and bank vaults right before it pulls the plug and sends the price skyward. That would be a great way to profit at our expense. Do you favor gold or silver? Bullion, proofcoins or seminumismatic. With gov’t unreliability it is hard to make rational decisions.
I subscribe to several reliable financial newsletters written by confident, competent well informed professionals, but, head & shoulders above the rest is Martin Weiss & his great team…………All that we readers want YOU to do is tell us where to invest our hard earned assets to keep them safe from inflation &, if possible, keep them safe!!!!! AND TELL US OFTEN !!!!! P.S. Tell us again where to buy gold & silver & also the best foreign currency mutual funds to buy. Thanks…………LP
Will buying TIPS provide any protection in the coming events?
I think they are going to issue “new world order” money backed by gold and the dollar will be defunct. This will get everyone in on the NWO economy. Prices on everything we buy will be inflated. Prices of real estate will be deflated to get rid of the real estate bubble. The new bubble will be green stuff (solar panels, wind power, battery hy-brid cars, etc). They won’t confiscate gold this time - that’s too obvious. The Fed will spike up the gold price (by printing so much dollars), then use all the cash they have (from selling bonds) to buy back the gold (bullion) at a small premium. Then they have the gold, we have the new fiat money, and they can inflate everything again just like always. Hey, everybody look at a long term gold chart. Gold is going up over the long term. Don’t be afraid to get rid of your dollars that will be worthless and buy gold or silver which will go up as the dollar goes down. If we have a stock market crash, then real estate will go way down with tons of foreclosures. Don’t buy real estate now in the US. If you can re-finance your house at a lower rate with a lower payment, do it now. Your house might be worth half of what is was worth one or two years ago. If you have a $200,000 house, it might be worth only $100,000 after this mess is over. So, if your loan is $150,000 payout, you lost $50K in the de-leveraging of real estate to come. A realtor will do a free rough appraisal of your property if you tell them you might want to list it. Then ask the realtor to hook you up with a couple of mortgage finance guys (talk to 3 or 4 at least) to find out your options (sell at a discount for quick sale, refinance, second loan, or hold tight & take the hit). Put the pencil to the paper, do the numbers, and get lots of advice. If you don’t have a house, don’t buy one now…wait about a year after the crash & buy a foreclosure on sale. Cash in CDs, bonds, muni’s, anything denominated in the dollar. Buy gold and multiply your wealth as the dollar goes down. We had bonds & sold them because no one knows if we would get our money back as a lot of banks are going to fail & be unable to pay. I think gold will at least triple from here. Then you sell it later, get the new money, and turn right around & buy oil/gas (foreign) stocks like StatOil (Norway). Good economies are China, Singapore, Austrailia, Canada, India, & Brazil. I fired my broker who had us in mutual funds & bonds because he laughed at me about the declining dollar & coming depression in the US. He’s not laughing now. Don’t be afraid to fire your broker if he is not saavy to what’s going on or you may find half of your wealth gone at a time when inflation is firing up to run for the next ten years. Don’t buy stocks denominated in the US dollar. Find a broker who can buy stocks overseas. That’s what I did. I buy the foriegn stock with dollars & when this thing is over, I cash out in Australian, Canadian or other money. Ex. Buy a Canadian Oil Trust in Canada with my dollars, wait, later cash out in Canadian money then exchange the money back into our money (getting the benefit of the exchange rate of the stronger Canadian money vs. the weaker dollar). By that time, our money may not be American dollars, but it may be New World Order money (another fiat money, but stronger than dollars). The idea is to buy gold ride it up, cash out, buy oil, ride it up, cash out, and end up about ten times richer than before.
Please include what those of us over 70 should do with our retirement $$ now less than $75K!!!! We need income, yet, we also need growth. We have cut expenses to the bone, nowhere else to cut, so if prices double for living needs, will the 100 shares of GLD and $2300 worth of gold coins bought in 2003 be our saving grace? Other investments are dividend paying stocks of solid companies. What should we do?
Is GLD a safe investment? Will they really have the gold as claimed? Same for SLV?
I am from a thirld world underdeveloped country.What happens if I cash all my savings and purchase gold
Why not simply declare America (the corporation) bankrupt and name Ron Paul as the receiver-trustee?
Then start afresh, building the hew America just as the Funding FGathers designed it - a hard currency debt-free republic..
Well, why not?
JDoN
For people sitting with American dollars, what do you reccommend ?
If the US dollar crashes, obviously this transfers to other currencies as well, so what to do ?
Obviously if the dollar is going to collapse, you would want to be in gold, silver, oil, and other commodities that might retain their value. However, that’s what I thought 18 months ago, and those positions got hammered. What’s to prevent a similar occurrence this time around? Color me uncertain after the events of the past couple years.
What will happen to the Swiss franc if the G-20 revalues gold ?
$5000 is all we have to invest in something that will help us weather the storm of loss of purchasing power. What shall we do?
I am so tired of hearing that the recession is almost over,but it will be a slow recovery. What recovery is that? I know many people that have not worked in over a yr. and can’t pay their mortgages along with other bills.There are no jobs out there. The banks are helping only a few people and most people cannot get a remodification.Gold and silver is the only way to go. We will see a huge hyperinflation in the future. I have accumulated physical gold and silver over the past 2 yrs.I feel that this is my protection.The dollar will we worth nothing eventually. Remember gold and silver is gods money it comes from the earth….
annuities–life ins. policies–short term treasuries money mkt. funds:
should they be cashed in and the funds invested in foreing mkts. or cd’s ?
Thank You
Len
In case of the collapse of the U.S. dollar, What happens to the stock market? Will stock prices go up or down. Example msft, Ko, twx, twc, V, cmo, nly ,ma. If I have a profit in any of these stocks should I sell them or keep them. What is your outlook?
Thank you
Thank you for the great information. Both my wife and I have great jobs that seem to be sheltered if that is possible. I have land and am prepared to build small Duplex’s fitted with solar lighting and Green stuff. I am trying to prepare myself for the new economy of the United States. How do you see this effecting my mortgage and this country. With the knowledge you have what is your panoramic view. Thanks again. I will share you blog with all my friends.
Larry,
Thanks for your informative alerts. Please copy me on your reponse/reply to the comment by
“Richard L” posted 9/18/09 @ 5:01pm. I share his concerns, and to his question as to the Canadian/Australian currencies. Thank you!
Is there any safe investment outside of precious metals? My wife and I have Tens of thousands on our “retirement dollars” in company plans. They match the 6% of what we invest through the investment firm they have chosen, but we have only about 10 choices…..and in my opinion, they are all risky. We can’t take the money out to re-invest unless we are willing to accept the 40% early withdrawl penalty, AND pay regular taxes on the money. I can see leaving it in the funds, and dropping to near zero……it’s a guessing game with virtually all losing answers. Dan
I own my home and have no debt. I do, however, have a lot of cash which will be worth much less if the dollar collapses. You say that you don’t feel this is the time to be buying gold but it seems that may be the only real protection against a radically devalued dollar. I’m finding this all more than a little confusing. If I should be buying gold could you provide some guidance on how to do that?
Thanks
If gold goes to $2,000 an ounce, what will happen to pre 1933 numismatic coins? Will they go higher too? If so, is there a risk of them dropping in price very quickly after they have gone up?
Do you think there will be a “Bank Holiday” at the end of the fiscal year (Sept. 30, 2009)? I have heard that we will be going back to the gold standard on that date. The banks need to be Basel II and Basel III compliant and have a Gold Charter? If this happens, the exchange will be 1 - 1 (gold and/or silver certificates and/or actual gold/silver coins). If the G-20 brings about the change I have heard that the exchange could be as bad as 1 - 6. In other words, if I had $6,000 in US paper currency, I would get back $1,000 in the new currency. Have you heard anything about these two
systems?
Thanks
But Larry, the world is not on a gold standard so what would changing the price of gold have anything to do with it.
Dear Larry. I am reading your comments for years. I trade commodities and can buy stocks all same broker. So I will buy Mining and other Stocks you recommended and keep out of harms way. I hope that will do the trick. This way my money is out of harms way,I am not rich and 75yr and have NO intention of
sleeping under a bridge. But I WILL stay comfy.
Karin
Where do I invest my current USA money market funds? Currently about 45% of my portfolio?
Many people have asked about real estate. Being a farm owner, I am specifically interested in your opinion regarding farmland in the scenario that you forsee. Also, your thoughts on concentration of natural resourse company stocks inside a variable annuity with a minimum guarantee of 7% annually as a hedge against the possibility of deflation for those of us ready to retire in the next 4-8 years. Most of my other questions have been addressed in previous comments. I have been following your recommendations and am now diversified into precious metals stocks, coins, with small % of my investments in other industry stocks.
Larry, Let’s say gold price doubled, food costs more, house prices also move back up (inflation), and Americans will have more wealth to buy food with lower-valued USD;
other nations (say China) will have higher-valued currencies (say yuan) to buy higher-priced food and commodities imports (since they are valued in USD) so they seem to be fine except their foreign reserves ($2 tril down to $1 tril) now worth less in local yuan term;
so I will be interested in knowing what investments (away from USD) will benefit me the most (I hold some gold stocks now); and utmost confusing,
what will happen to nations whose currency is pegged to USD (stocks, food prices, commodities prices, house prices), perhaps they will immediately unpegged?
I am an Australian living in Australia and all my investments are here.
Do you think Australia will weather the storm ?
And what do you think the demise of the US as a world power will have on its ability as a military power?
Michael
I think your right on. What worries me is the Gov’t checks I am dependent upon each month. I am retired military, I paid social security taxes like everyone else. I retired with no savings at age 45. Managed to leverage a job over 13 years to save 100K.Lost 50 K last year. I receive retired pay from the military, Social security and I am 70% disabled for which I draw VA benifits. Question, Will some sort of money be available for millions of military retired people? We earned every red cent they give us and I don’t want to be thrown under the bus. Freedom is not free, the price is paid by those that defend this country..
Larry,
What’s to stop the government from confiscating gold (after they’re done devaluing the currency) besides armed revolt that is? I think there is precedence for both scenarios.
How/where does silver factor into this [gold] equasion?
Hi Larry,
Us common schmucks need to know where to put our dollars to protect them from inflation. Is it simply gold (GLD ETF) or are there better ways? I’ve been flogging around with investments since 1965 and I’ve rarely gotten it right. I need help.
Thanks for all you do.
I’ve been watching currency markets for a year now, just starting to trade with real money with good risk management. I’m finally found a strategy, and am concerned about a one world currency, and how these markets would be affected. Wouldn’t that be a huge undertaking. As far as changing the world’s reserve currency, what is even a feasible option? Would a new one have to be created?
Pegging a move higher with gold seems to benefit only those individuals, countries that have large gold holdings. Which countries, institutions have the largest holdings? After a move up in the price of gold, wouldn’t they then need to sell gold to convert it to dollars which would push gold lower and dollars higher in demand for a liquid currency? Wouldn’t all currencies be affected by this converting gold to a spendable currency? I see this creating even more fluncuations in currencies, which isn’t the goal to stabilize the currency markets. What would be the best way to stabilize currency markets?
Hi Larry,
I have about 30% of my US brokerage account in cash with almost all the rest in “stuff”. My thinking is to buy stocks after a big dip or crash later this year or next; but if the dollar really tanks as you’re suggesting I maybe I shouldn’t be holding the US$ in my brokerage account as they’d be devalued greatly. What IYO is the best thing to do with our US$ in US brokerage accounts right now and in the coming months?
Thanks,
Chris
There has been a lot of talk and confusion on a currency devaluation. I think it is inevitable, the question is how much and when and by what means. If you could have a session on solely this topic, I think it would be of a huge benefit for all. Slow devaluation via inflation and printing, immediate devaluation via electronically printing up a large sum of dollars, creating a new dollar currency with a 2 old for 1 new dollar, a new world currency, or whatever else.
Larry,
First it would be interesting to visit history and see how other countries survived (or died) when having such high debts, ie compared to that country’s GDP and natural resources.
Also it would be most interesting to look at the G-20’s agenda, their goals and major topics discussed, and what agreements they left the conference.with.
It appears you’ll never be able to answer all these questions in this lifetime! My husband and I are 58 y/o, and each has a 401-K, not totalling a great deal. Our house is paid off, but we have kids in college. There is no grand sum that we can convert into gold. We can convert all of our 401-k and IRA stocks into foreign mutual funds, but when we eventually draw money from them, it will be US dollars that we draw. Will the stock market drop along with the dollar? That would be logical to me. My husband is determined to retire ASAP, and that scares me to death! What on earth will we live on? What can I do? I’ve been hearing about rachet annuities that guarantee 10% annually, and pay a guaranteed income for life. Don’t see how this is possible? Do you have any advice for us, or is our situation hopeless?
Larry,
Isn’t a simple GOLD ETF the answer for the small investor who may not be able to take shipment of significant amounts of gold bullion? Or is mining and metal stocks the way to go?
Curious what us middle class folks ought to be doing in order to prepare for what you are saying? I make around 55K and provide for a family of 4. Should I be putting money away into gold and silver or would I be better off paying off my house? What happens to real estate in your scenerio?
LARRY, THANK YOU FOR THIS OPPORTUNITY AS I DO NOT HAVE AN ANSWER.
WILL BUYING CANADIAN OIL / GAS / LUMBER TRUSTS INSULATE US FROM DEVALUATION, OR WILL THEY BE “AVERAGED”
DO WE BUY SILVER, COIN ?, OR GOLD, PREFER SILVER IF A YES
WILL USA STOCKS BE DEVALUED, “AVERAGED TO THE NEW WORLD CURRENCY.
SOME YEARS PAST MY BUSINESS TOOK A GREAT LOSS [ACCOUNT WAS IN MEXICAN PESO] AS I WAS SELLING, ACCEPTED PESOS THEN CONVERTED TO USD.THE FIGURES PRESENTED ARE NOT ACCURATE, AS RECALL, [PAINFUL], SEEMED. ONE DAY ENDED AT ABOUT 2400 PESOS / ONE DOLLAR, AWAKENED THE NEXT DAY AT ABOUT 5000+ TO THE DOLLAR, NEARLY A 50% loss, WE WERE OUT OF BUSINESS…FUTURE LOOKS VERY DANGEROUS
9/19/09, website…..I don’t have one; just 2 emails.
I’m a retired bridge &tunnel worker (31 yrs); age 62; I got pension, SS , good health coverage. Although I’m
OK on that front, I spend less & travel less.
My 37 y/o married daughter lost her job in the apparel industry (NY) in Jan. Her husband works the same industry also. God forbid he should lose his. They just bought a new condo a year ago.
My wife & I do help them out as it is.
My only hope, at this point, is that the ACORN scandal serves to derail this administration before it does any
further damage. Have a good day.
What specific steps can we take to protect the value of our financial investments? We are in bonds, stocks and cash. What investments can we make to survive - and profit - if what you preedict will happen actually happens?
What % of assets would you recomend in comadities?
So where does Silver bullion and pre 1963 Silver Coins fit into this senario ?
Larry,
Wouldn’t if be wise to just stock up on as much physical gold as possible? Will the government just confiscate it like during the great depression? Can they do that? I’d like your thoughts on this
I scarcely know what to ask you.
Buying gold before the next “Bretton Woods” is an obvious answer. The problem is how to anticipate a financial restructuring. Certainly, any financial meeting would be a warning, and recognizing this ahead of time would be a great help, but such negotiation could be in secret until the final occurence. It seems we need some sort of an early warning system. How that could be arranged is a mystery to me, but something to think about. Is therre some system of sensors or indicators within the Fed that might help? I’m sure Congress would be just as blind-sided as the rest of us.
You have advised we not load up on gold now, as you are expecting a dip. However, it seems everyone should be carrying a certain amount of gold, and should carefully escalate it. I have seen no recommendations that we hold more than 10% of our portfolio in gold, but that would be only a slight help in such a restructuring. Owning other commodities might help.
How about baskets of other currencies. How could we use them?
We need Timing, Assets to invest in, How to move internationally with our money.
Incidentally, how much are condos in Thailand, or Brazil? And since I’m on the subject, where can americans move, with their assets, to live, or retire?
I live in Australia and my investments are only my superannuation. I would like to invest some small amount somewhere.regards
Chris
ok so we are worried too!
We have UK pounds!
We have US dollars!
We have EURO!
We have plans to Live in Thailand!I am 57 my wife 43!
How do we plan??
If you look at the currency rates 1997!when the Dollar from 37 baht went to 50!!the UK pond 60 to 75!!
Is this likely to happen again??
Thanks
hash
What you are saying is possibly very true. But at the same time I have this question in mind: Why shold they precipitate such a drastic decision by decree, when there is already a gradual depreciation of the dollar and an ongoing increase in the price of gold in the open market?
Shoud’nt that suffice to provide the same effect instead of a catastrphic sudden devaluation?
In 1944 the ownership of gold by the public had already been prohibited by the Roosevelt administration around 1933. Now is legal to own it, so that the public have means to somehow protect themselves. The real calamity would be if ownership were prohibited again ( Heavens Forbid)and then a defacto devaluation happened.
I agree with your thesis, however there is something that I feel we are forgetting. The current situation is bad for a lot of people that have no money. The ones that do well with your help and information will weather the storm. And what about millions of Americans that will end up with nothing. I guess my concern is about the social safety, since our governement will be in a difficult position to accomodate military and police salaries for a while of course. Then what about our social structure? If as you said this event would happend? there would be social unrest. It happend in Mexico,Argentina,USSR and many other countries I know this is not a political forum but this is a very important issue. Usually people that end up with nothing have a tendency to believed that the rich is the guilty party? Just a thought !!! What can you advise when that time comes?
Thank you!!!
Larry: I have over a million bucks in short term bonds, utilities, etc….I am 57 a retired what should a guy like me do? GLD out the wazzooo? Really, what is a comprehensive plan for people like me? Thank you…
Some of us who read your advice with great interest (and thanks!) don’t reside in the US, but have investments placed via the US.
For example, I reside in Australia. I have a US dollar account for some of my cash that I use as a base to invest in US ETF’s. This is because the US has a range of ETF’s far greater than available in other markets.
Any advice as to what people like me should do to protect the US dollar cash portion of their investments?
Larry,
While the dollar drops in value, foreign asset prices increase in dollar terms, along with foreign currency appreciation.
So what happens in this abrupt devaluation scenario to US (dollar denominated) assets?
Do they go down in reaction to the exiting of foreign shareholders, or do we re-assess their assets and
see the prices of companies with hard assets rise?
Does General Mills double the price of cereals -and does it stock double as well?
How quickly would housing prices reset to this currency change?
How quickly would the overhang in housing supply disappear?
If gold were to double in price, wouldn’t every other commodity follow suit?
What happens to to all the forward contracts for fuels, and other commodities to US companies. Do the suppliers get screwed, or does the situation legally enable renegociation? I would seem probable the devaluation would simply be defined across all of the currency pairings such that all transactions from that day forward start at a new fixed exchange rate, which is then allowed to float from there. What do you think?
What I am getting at is: if Coke a Cola for example should begin to recieve more dollars (worth less) for
their intl. sales, their profits would appear to grow depending on the the cost impact to their raw materials.
If they owned their raw material supplies, they would appear to be more profitable, at least until increased
wages are eventually won.
What happens to the dollar should happen to the Pound, and the Euro as well; so, will it?
The ECB has been stealthy with it’s bailouts, hence the public perceive strength, and continue
to hold up the Euro.
What happens to other currencies such as the AUD, and NOK?
What happens to Obama’s approval rating?
Such a move needs to be considered in the context of a game a chess, where success goes to the one who
best evaluates all the possibilities. Surely we can agree the initiators, and collaborators of a devaluation will
offer a solution that accommodates all nations in it’s design, in order to get the general cooperation of
many nations.
Hello Larry,
Thank you for your warning regarding the greenback, however i have suspected for sometime that there was major trouble ahead for the USA. It is not possible to live with
enormous debt as the USA has been doing for decades.
My life savings are in sterling, which is not too healthy just now, and allready devalued
against the euro. Any help you can advise would be greatly appreciated.
Thanking you
Jerry Hough.
What you say in your article are credible and therefore alarming. You seem to suggest we can do very little but buying up gold to protect our monetary assets. Surely other essential resources such as oil, gases, and basic minerals, etc.will also increase in value against a free-falling USD because the wheels of industry worldwide cannot and will not stop. Also, China has a vast reserve of gold which she may use to defend the USD in which China has a mountain of foreign reserve.
You are the expert. Please give us your definitive advices.
I understand & accept on the demise and loss of value of the US$. Please tell me about the EURO and other third-world currencies like the South African Rand. What is their future likely to be?
Sincere thanks for your perceptive incite and assistance, which is greatly appreciated always!
Larry, thanks for the warnings (by the way, I share your views) and your effort to give good advise. I am not smart enough to give good advise but I have some questions. In Europe you buy currency gold (like the Krueger Rand) at the banks without markup. I hope you find something like this in the US of A. I own a tiny little gold in GLD and I wonder what you expect might happen to that in case of a devaluation. I am lucky to receive my social security from the Eurozone so my losses may be limited.
I own a piece of land that I planned to build my retirement home on but the county taxes destroyed that dream. Now I wonder if I should sell it and buy something in Europe where I would rather live anyway (I am stuck for family reasons). I just lost health care coverage and no insurance will take me as I am over 65. They have the perception everyone that age has Medicare but I did not work 40 quarters in this country. The Europeans do not have this age discrimination. What kind of money transfer into other countries/currencies might help survival?
How can I buy into commodities (may be LEAPS?) to stay at lest level if not leverage my little investment money?
My mother-in-law has a substantial cash position, partially in CDs. What should she do? I recommend gold but at her age she is very suspicious of everything.
Thanks again for your work! Jo
In order for all countries to alleviate their “Debts” how soon would you forecast that there will be a “One World Currency” regulated by one governing body?
Hello Larry
As far as I understand from the reports coming from USA, it has the biggest reserves of gold in the world and the largest gold mines in the world so what would prevent the Fed to peg the US$ back to to gold in any rate they feel right to do it?
Best Regards
Raam
Your comment: “We’re here to help you protect yourself and profit
I am deeply concerned that you do not have the information and recommendations you need to insulate yourself and your family from this great global war on the value of your money and on your financial security.”
If so concerned, are you making your information available for free? I certainly would with those motives. Otherwise this is just another money making scheme. If so, you have my highest respect and should be on CNN Heroes.
I’m still relatively young at the age of 25. About 5 years ago, I began really tunning into politics and the deceit being perpetrated on the American people. While I’m much further ahead in ideology and history than economics, I’m coming to realize the greatest war and problem this country faces is its debt and disgraceful economic policies. So, to the point and my question. I’m currently invested in the TSP program, as I serve in the US Army. I have about $10,000 dollars tied up in the program. I was signed up for the “L” option with a projected retirement date of 2040. As a result, the distribution of my money through the TSP was supposed to have a maximum of around 18% allocated to “G” funds, the securities and bonds. I checked my account yesterday, and found 52% was allocated to securities and bonds. As a result, I’ve seen a 12.9% return over the past few months, while my wife, signed into the same “L” 2040 retirement option, has made a 26% return, as her funds were allocated correctly. Needless to say, I’m more than slightly miffed. I’m looking into pulling out the money, taking the penalties, or at the least, reallocating where my money goes. Still, with the news I read from “Money and Markets”, I am not very confident in any of the stock or investment options available to me through the TSP, as in so far as I have read, there is no option around ETFs, gold, or other contrarian investments. My greatest central question is this: “Since I don’t have the time to invest for short term targetting of stocks (I’m deployed in Afghanistan at the moment), is the best option to simply pull out the money, eat the penalty, and dump the money into Gold? If not, what other areas would be advantageous? If I need to sign up for a service for this advice, I’m fine with that. I’m just looking for some guidance according to my situation. I just really don’t want to see the money we have tied up in the Army’s TSP be cut in half or worse by a gutting of the US Dollar. Thanks much for all the information and insight. I look forward to your reply and/or the future releases from Weiss Research and Money and Markets.
I am only a very small investor based in uk.I, to a certain extend i agree with your analysis.To me ,at this moment in time,every thing is possible.my portfolio is mainly UK FTSE100 & miners Banking & energy shares.I think your idea of investing in gold is a very interesting approach,however ,i donot know any gold company registered in UK other then Avocet, & Randgold resources.Randgold resources is far too expensive now .Unfortunately ,i have just missed the boat.As you mentioned time & time again the US $ is devalueing all the time i have no intention whatsoever to invest in US market.i feel more comfortable to invest in UK .Any suggestion, input coming from you will be greatly appreciated.Many thanks.
You should focus on those in sociekty, the elderly, iinfirm and the poor of your country to protect them with any advice NOW AS A SOCIAL RESPONSBILITY WHICH MAY INCLUDE THEM STORING FOOD WHICH CAN BE STORED TO SUPPLEMENT WHAT MAY HAVE TO BE SOUP KITCHENS WHEN THE REAL BUBBLE BURSTS.
FOIR THOSE WHO CAN TAKE ACTION NOW GOLD IS ALWAYS THE ONE TOP OF THE LIST.
IT KEPT MY FRIENDS ALIVE IN GREECE DURING THE LAST WAR AS IT CAN BE TRADED WITHOUT TROUBLE ANYWHERE IN THE WORLD
I have 2 Questions, Larry:
1. I hold mostly Australian Dollars. Is that also at risk of devaluing ?
2. Will real estate rise substantially in your scenario ?
Many thx
I have already been purchasing gold & silver; however, we are close to retirement and have dollars
in the bank and in the stock market.
Would it be reasonable to assume we should leave the US Dollar and put it in something else?
If so, what? My son has almost all his savings in gold & silver, as he foresaw this happening several
years ago.
Not sure what to do to protect our retirement cash.
I am a non-finance person based in the UK, I cant take advantage of a lot of your recommendations for us customers; pls tell me what I can do to protect my savings in euro and pound from here in the UK; recommendations of stockbrokers etc?
Thanks Larry for an enlightening, yet sobering article:
About two years ago, after reading Nicholas Hagger’s The Syndicate, I came to the stark conclusion, (and
have been vociferously broadcasting it), that the only way out of this quagmire was to eventually ‘role’ this
country’s massive debt over into a global economy much as Alexander Hamilton convinced the individual
states to roll their massive Revolutionary War debts over into the new Union.
It took JP Morgan about six years (from conception to birth), to finalize the Federal Reserve and I see a
strong parallel between what he did and today’s events. 2012 or 2013 seems to be a likely ‘birthing time’
for the finalization of the next stage.
Larry–The reasons you give for the US dollar demise sound compelling. But why do you give the opposite recommendation (buy UUP) in your Foundation letter???? It is very, very confusing. Or are you telling that short term dollar is a buy, but long term it is a sell???????
Hi Larry, you and your team are indeed doing a Great job, some of us concure with your findings and it is no surprise, others will simply never believe what is happening , and will continue to believe in there respective governments, the rest of us are used to thinking out side the box because we are inherently sceptical of any government. We are in “interesting times” and we will make money out of the mess. Printing money is indeed the only way out, Depression and the desert that would have created in our respective countries , is unthinkable in modern society. Hard assets are the currency of choice for the forseeable decades, irespective of this financial crissis, that just doubly emphises
the safty in Real Assets– Stuff ! Keep going Larry !
My remaining investments are in Fidelity through Woodard and Co.,I thought they would advise me during the crisis, but they really haven’t. I’ve lost half of my inheritance, now what? Leave the other half in their hands to lose the rest?
Your logic is unclear re doubling the price of gold, thereby reducing the debt by 50%.
Larry,
I know your team is working on recomendations for those of us in retirement. Would you please address this issue relative to your concerns about currency devaluation.
As a young guy, I am just starting out in learning about investments and cash flow and whatnot. What would be a good recommendation for the young generation? (22ish crowd) I also have a military job right now, should I be looking at extending that job? I am up for any wisdom.
If the G-20 did incease the price of gold as you suggested - then wouldn’t all tangible assets suddenly become “too cheap” ?
As a new subscriber and one who holds only a position in silver now I need to know everything
you can uncover, Thank you,
Dr. Weiss was very clear in his 2009 “survival guide” – to move to the safe harbor of Treasury-only money markets. Now that the message is that our dollar is heading toward a banana republic status, I would definitely benefit from another straightforward message. Please answer 3 questions soon: (1) What is the recommended price range for buying gold, and specifically, is the current $1000+ level too high? (2) Should one buy the metal itself or buy an ETF? In your apocalyptic scenarios, are ETFs safe? (3) Percentage of portfolio that should be dedicated to gold.
I understand that the underlying plan of our “caring for the people” leaders, is to reduce our national debt to half. But what are they investing in to protect themselves? Can we be privi to that information? I’m on the verge of retiring and have lost half of my retirment already….how can I afford to lose more? Please tell me what the solution is…..
If you was to have 50 to 60 thousand thousand in “I”Bonds .Would it be smart to cash them? And invest that money in Silver Bullion or a bag of dimes maybe even Dominion Resources.
Larry,
I think it would be helpful for you to explain very specifically how the devaluation of the dollar would affect specific investments and the lives of ordinary people–people who do not travel overseas. For example, I understand that if I travel abroad and the dollar is devalued, I will be able to purchase less if I buy things that are denominated in other currencies. But if I own real estate and rent a home to someone in the U.S., and they pay me in dollars, and my fixed debt service is paid in dollars, what is the difference? Is it simply inflation? Is it that nominal wages won’t rise as fast as nominal living costs?
I asked a similar question a couple days ago, as I am concerned about whether I should sell my primary residence–like many others, what once was a comfortable $100,000 equity buffer has vanished. While my house is not yet upside down, if I sold it now, I would break even (a bargain in this market!). But if, with the coming new wave of resets, and the foreclosures that will inevitably follow, the market is further flooded with inventory, another 20% drop in prices would leave me $60-70,000 underwater.
How does the devaluation of the dollar affect real estate? In your example, you indicated that a $100,000 property would have to rise in value to $200,000 just to break even, if the value of the dollar declined by 50%. But wouldn’t the nominal value of the property automatically rise if the value of the dollar is halved, and a real benefit accrue if you are paying off a fixed, 30 year mortgage with cheaper dollars? Please explain how this works, as it is confusing.
Perhaps a key corollary question is whether real estate prices would benefit at all in this scenario.
Also, would wages rise? I could see how devaluation, and the subsequent increases in the price of things such as oil, imported foodstuffs, and other commodities would rise, but would wages rise as well? I’m assuming that even if wages rise nominally, that they would not rise as much as prices and that would result in reduced buying power. Is that the logic? Sorry for all the questions, but asking you these questions in writing helps me to frame the issues.
To get back to the real question, Peter Schiff, and Martin all seem to be arguing for a continued deflation in real estate, and for this condition to persist for years. Do you agree with this analysis? I am flexible enough personally to sell my residence and rent. Is this the correct strategy? I understand your reluctance, and the reluctance of others to whom I have put this question to answer with specific advice, but I am asking generally. Those of us who follow you are “big boys” and can take difficult answers (indeed, I would appreciate them–I would rather bite a bullet now than eat a cannonball later!) and would not hesitate to change our lifestyles by selling now and renting. A last concern on the real estate front is this: if I do sell and then rent, won’t the cost of renting in nominal dollars skyrocket as well? This gets back to the question regarding a fixed, 30-year mortgage: If I have one at 5%, why would I want to sell the property when I could pay it off with reduced-value nominal dollars, assuming there is an increase in rent as well?
I hope you can address the real estate question, as there are millions like me in this situation. It was real estate that started this mess, and it is real estate (values) that affect the banks, and the financial system. This is a key question, as it goes to the heart of the economy.
Could you explain in detail how governments raising the price of gold to $2,000 would work? Would they peg their currency to this price? How would the “market” affect the price of gold after such an agreement? Is such an agreement enforceable? What would be the enforcement mechanism?
This is fascinating, intellectually. It is also necessary to understand in order to properly prepare.
One last, key question for you (you must be bombarded!): I, like many others, also subscribe to other analysts, and have accumulated other gold stocks besides the ones you have recommended. They have done quite well in the recent run-up (for example, Claus Vogt recommended El Dorado gold and it has done very well for me). However, if you believe that there is a 10-20% correction coming, wouldn’t it be strategically correct to sell now (or when the price of gold approaches your anticipated top of around $1100), bank the profits, and wait for the correction to buy again? This would enable us to save the 10-20% we bank now, and buy that much more gold/mining stocks on the dip. This would seem to be very efficient (10-20%, invested over time, is nothing to sneeze at). Until now, I have ridden my gold/mining stocks way down, and back up again, but I am reluctant to get back on the slide down! I know you can’t pick tops and bottoms, but you can book gains, and if you are confident that there will be a correction and a subsequent explosion, why not sell now and buy later at a lower price?
Is it that you want to capture the initial explosive burst of the move and fear missing it if the money is on the sidelines? Like others, no matter how confident I am in my strategy, I tend to get nervous when my investment declines….
I think others have the same questions.
Thank you,
Steve Leas
Larry,
Thanks for sharing your knowledge.
How is a the basic; “non ‘Wall street’ invested” American family going to survive such a massive increase in costs?
How can our government allow- or CAUSE- such a blow to US tax paying blue collar workers?
What DID happen to the US people after the 1944 money value change?
Hi Larry
I’m a recent subscriber. I’m located in Toronto, Canada. How does the USA dollar collapse affect a foreign investor who already earns money in Canadian dollars?
Also, many suggested investments involve ETF’s and US trades. I need to convert my Canadian Dollar to a USA dollar to make the purchase.
I understand that your primary client is a USA resident, but what does a guy like me do?
Thanks
Ron
Will the dollar be replaced by the Amero or some other currency? If so, what happens to my mortgage contract for dollars, is the contract invalid? Should I go out and follow our government’s lead and barrow all the money I can in dollars and wait for the dollar to go away?
You and others have aleady convinced most of us out here as to WHAT to do and WHEN (soon). Please advise HOW — which commodities, which precious metals, futures vs. bullion, where to buy bullion, etc.
Thanks.
Wondered whether you could do a brief run through on the best strategies appropriate by country. e.g. Canadians and other commodity based economies should do “X”, Europeans should be wary of “Y” and Americans should buy gold and we should ALL grow our own vegetables and herbs. :)
Living in the country would seem to have its advantages. One would be able to be more independent and also not have to deal with the kind of breakdown in services and other problems in a populated area. With some land one would be able to grow their own food, maybe have some chickens for eggs and be able to hunt in nearby wooded areas. Kind of like the old days when settlers first came. Of course their is the concern of being away from those services and other amenities that one gets used to in a city. Not that every one could or would want to do this. Selling the house and then being away from people you know may stop most from considering this.
Even in the city, a person could plant a garden. I think that community togetherness will become even more important as times get really hard. Neighbors helping one another and watching out for each other’s interests is an important need when government services that we depend on in normal times are no longer there. Stocking up on food and other needed items is a good place to start. Though not everyone may want to get a gun, it is a good thing to have for home protection. Consider, if you are not already there, joining a church or other organization where people are welling to lend a hand.
My thought - “Hope for the best, but prepare for the worst.”
Larry, do you see govt confiscation of gold in the cards. If past is prologue……………
Larry is right. Newest issue of GEAB No.37 says ” In the pursuit of the impossible recovery ” GEAB predicting 3 more big monster waves until summer 2010 (unemployment, bankruptcy, currency) - after that - we’ll see the new world order.
All to you folks: Be prepared - I’m from Germany - and we lost our money twice ! My grandfather always cried, when he was talking of these bad times. His life’s savings, savings of his children - all lost. Every of his 8 children had a bankbook (which was quite common during these times) - all got marked as “invalid”.
Overall, what is the best way to be prepared to survive this? How long could such craziness continue? What do you think will be the end result? Thanks
Larry
I believe the direction for investment out of the dollar is done soon and in some order so we can accomplish being funded without much recourse in other currencies, etc… gold…art
I’m in the process of paying off all of our credit card debt and will soon refinance my home with a fixed rate loan.
I’ve invested in some gold and silver coins, have a 401k through my employer, and have a managed IRA.
What else should I be doing and what should I stay away from?
If this is a conspiracy against the dollar. Then I have my suspicions about gold it just seems to obvious. I could be wrong any other options hmm.
Larry,
I have moved the bulk of my 401K retirement investments to cash as recommended by Martin. So, what do I do now to protect the buying and earning power of the dollars I have? What investments should I consider to protect the value, grow the value, and at the same time generate income? In addition, I have cash value life insurance policies with substantial cash value and guaranteed value annuities with investments in moderately agressive stocks. Any thoughts on how to protect the value I have in these products. Finally, I am considering buying a home that I could keep for 10 years and possibly retire in. Should I buy now or wait? I am also thinking about upgrading an auto. Should I buy not or wait? Thanks!
Larry, I’ve had a “gutsy” feeling for a long time (several years) that this event will happen. I have kept my friends and family advised as to what is developing hoping they would take the necessary action to save themselves from this debacle. So far it’s fell on deaf ears. Americans are so enamored with their good lifestyle, they will not be prepared for the coming event. As to the timing: as you say, your’e not sure. I agree however that this event could happen virtually overnight. I say watch for signals like “we will never let the Dollar fail”; “the Dollar is strong”. They always do the opposite as what happened when they went off the Gold standard back in the 70’s.
Mr Catskill
You mentioned the protection of retirement. Since the majority of people have their retirement in a 401K how can the money be protected when the choices for investment are stocks and bonds?
Would you talk about the different ways to own gold, gold shares, ETFs, SPD Gold trust, penny gold mining stocks, gold exploration, etc., ease of buying, ease of selling the different vehicles, the commissions you pay when buying and selling, the relative safety factors of the different vehicles, etc?
When you say the “gold price will be set by the G20″, isn’t the real gold price set by worldwide supply and demand, the open market? Isn’t the price of oil really controlled by supply and demand? I know there are powerful forces influencing the markets but even they don’t have absolute control. Why is the gold market any different?
Are there are implementations by BIS of the Basel I and Basel II changes in bank regualtion regulation requirements scheduled for implementation in 2009 ? e.g. Sept 30 th [or any other date] for putting certain off-balance sheet toxic derivatives (so called dark OTC derivatives) back on their books ?
Since gold is denominated in US dollars on international markets, how does one protect the downside as you predict for the US dollar when investing in gold. For example, if gold goes up by 15% in value yet the US dollar goes down by 20%, then I will be down by 5% on my investment.
I’ve been buying gold&silver as fast as I’m able to do so. I own a small amount of
SLW. I keep as little money in US dollars as possible. What else should I do? Thanks.
Where to put cash….if we try to put it overseas, who will take the dollars????….already columnists are saying they are “laughing” at the Americans and their money….is Sweden a place safe enough to send dollars to …???? I’m not advocating dodging the tax man, but their money is worth more than our dollars……
I am thinking to get ready for inflation is to liquidate most cash and put in stable investments, real estate, etc. It is thinking correct. What other alternative should I look at for stable investments?
Is now the time to dump stock and buy gold?
How can I buy gold in my IRA?
Should I buy gold and hold at my home or buy gold stock?
If the doller tanks, who buys the gold?
The Gov. could make it against the law to own gold, what then?
Is silver a good buy?
Very good piece, Larry. I really liked it.
As a €uro based investor, is gold still my best bet?
If gold is likely to double due to the action of the USA probaby in the near term why would’nt it be prudent to but gold now. We would still be in front even if gold fell to the $800’s in the mean time?
Larry,
Keep up the good work - am looking forward to the briefing.
George
Are there any paper currencies likely to survive the coming debacle fairly intact? Perhaps the Swiss franc, the Canadian dollar or any other paper money? I presume that it is wise to buy gold or silver now, correct. And what about silver, what is its potential?
What can someone like me, who has little idea how to protect themself, do to protect what they have that is managed by a reputable company (I think!) but whom I feel is not listening to me? At my age there is no way to make more and I don’t need more if things stay the way they are but I don’t think they will according to what you are saying. I cannot afford to have my resources slashed by half or more and be able to live decently. What can I do? I think you need to address this kind of situation for all the older people who stand to lose so much.
Thank you,
Pat
I was planning to buy some real estate in Chile in the spring, with the intention of moving there. Should I buy now?
Larry-appreciate your insights and help. My biggest concern now is how this will effect the mortgage on our home. Some say we will be able to pay for it with cheaper dollars, others say we should get it paid off–which will take some time at our current rate. Those who say we can pay it off with cheaper dollars say to pull equity out and put it into gold, land, animals and fixed assets.
Let me know your ideas. Thanks.
Here is my dilemna. I own a multimillion dollar house and believe or not, I still have a fair amount of equity. I have a 5-year arm rolling in one year. With the money lost in the crash, I am on the fence whether to sell or not. My payments are probably to high for me to be comfortable. I can try to pay down the mortgage to a more comfortable level and refi early and then hope that things don’t get to bad or I can simplify and sell now and take the cash and invest in your porttfolios. your thoughts???? I may have answered own question though.
Larry,
I appreciate the briefings that you and Martin hold. They are extremely informational and beneficial. One thing I’d like you to cover is 401K’s. Many American’s have been building their wealth and savings through their company’s 401K’s, and I am one of them. What can we do to protect our 401K’s?
what should be done with 401K’s
Larry,
Please be kind to us in countries outside of the US. Tell us how we interpretate what you are saying for the guys in UK, Europe and elsewhere.
Many thanks for great advice and service.
John
I don’t trust GLD, so I have money in CEF. You talk about investing in gold, but what percentage in mining stocks, ETF’s, and more importantly, physical gold. Lastly, what percentage should be invested in precious metals out of a persons entire portfolio? Thanks Larry!
Hi, your dollar predictions certainly make a strong case for holding gold. But the scary thing about gold is the possibility that it could be confiscated like it was in the past. The gold dealers recommend holding coins with numismatic value to guard against confiscation, since they were exempted in the last confiscation. But they carry an extra premium and nothing says they would be exempted the next time around. From what I gather, there is no one on the planet who can tell a prospective gold investor that confiscation will never happen again. Can you address this concern in your presentation? Thank you!
How do I protect my 401k (TD Ameritrade) and 4x account ( GFT Brokers), both dinominated in USD..???
Thank You Bob C.
I put my money in Treasury Direct 3-month securities as advised. Are they still the safest place? I am 80 so I’m most interested in preservation.
This is a very confusing time for seniors as we can’t put all our cash into commodoties. Please tell me how to protect against this inflation which is around the corner. Thank you.
Gees Lousie!!!! Do I sell all my US Dollar denominated investments and invest overseas, buy gold, buy natural resources, all of course in foreign markets?????
Will silver appreciate in the same percentage as gold in your estimate?
Will the government be able confiscate the gold in the possession of U.S.citizens if the dollar
crashes?
The evidence is strong. I bought a little god and silve in2002. It obviosly has done well for me.
But what other sources of protection do you reommend?
All right, you want more, I’ll give ya more!
The first thing to do is protect you home and well-being. Here in the south, many homes are well below the average price and taxes are about 25% of many other areas. I’ve got a double wide on 5 acres and paid about $50K. Taxes are about $400 per year. No problem leaving the place for a month or two. There are just as many churches as there are gas stations. Put your home in a living trust to protect it from future taxes. And, any trust is more difficult and expensive to sue. Establish a non-revocable- living trust on paper just incase you get sued or have a bankruptcy; you will be in a quick defensive position. Sometimes this makes foreclosure more expensive and puts you in a better position to negotiate. Everyone should own some physical gold (20%). I believe this will be safer than any currency investment you can make. If you do go currency, those countries with trade surpluses will generally do better. And consider countries that have lower government spending per taxed dollar. You can order Canadian currency ($5000) with you local B of A account and not leave your home town. If you think inflation is coming, it’s best to establish long term fixed price contracts for goods and services. Consider trading your car in for one with lower miles and better gas mileage. Order a six-month supply of food from beprepared.com. A couple thousand in liberty stamps might be a good idea. Historically, timber deeds have done well when purchased in depressions and held for the long term. Run an ad on Craig’s List for a forester and get some opinions on tracts that might be available in your area. Sometimes the local forestry department will give a free opinion on volume and species. Timber deeds don’t always pay taxes and long term the investment just “grows”. Consider purchasing some Post Revolution China Art Work. Up grade you office equipment and stock up on everyday house hold supplies since the cost of many things is going to double. Look for Canadian generic drugs as an alternative to your normal source. Health care is about to take a huge hit and my even collapse. And, start an exercise program and eat healthy. Medical care may become like a triage system. The cities are going to take the biggest hit for taxes and violence. Purchase a couple rechargeable stun guns for additional protection. Take the time to learn google business applications. It will cut your future Internet technology expenses in half. Blackberry phone Internet may be a good cheaper alternative if broadband goes down or is taxed additionally. Brush up on your gardening skills and stock up on canned goods. Long haul trucks and other equipment are being auctioned off at below production prices. Expect a shortage in crop duster aircraft. Hanger a good conditioned cheap one if you can. As commercial real estate takes a big hit, look for auction inventories to double. A one-world currency adjustment will be painful, but China will have a difficult time competing with us having a floating currency.
davygene
I agree with you on the dollar and the precious metals.
BUT:
Gold and Silver 95% bulls
$US dollar 3-4% bulls
Euro 95% bulls
After 36 years of doing this, I think those numbers are way out of wack just like last March in the S&P and the VIX.
The world is rarely this smart together. It is also scares me most of the bearish people are now turning bullish because they missed the move since March. Including our Million $ portfolio. What I do in the WAVE counts says. Tops silver, gold, djiu. djit, djii, and etc. I could be wrong but a 1,200% in gold and silver stocks seem enough for me.
I want to invest in some foreign stocks like Shell & Pfizer.
I have trouble finding US stock brokers which accept clients
having a foreign residence address.
Hi Larry,
Firstly, I want to say thank you for your comments.
I am student in England and I am preparing my ownself to master degree.So far I have saved some money for take to that education.I am from Turkey and my money in a local bank which is in Turkey.In the addition my money currency is USD.Value of the dollar is considerably decline and this money really important for my education and my future.I thought before that I can manage my money with your comments but everyone greedy and wants make the earth grey.Terrorizm,new source of energy,money.. I got fed up about all that vital plays..
I have read your comments and base on that approximately 4-5 months ago I changed to currency of the my money from TL. to USD.Also now we are almost at the and of the September and I need to use that money however my money lost value of its.I am really curious what should I do? And sorry, I have to say that I can not invest money to becoming as one of your members but I can work for you which headquarters you have in London.
Take care.
My 401K doesn’t allow me to invest in individual stocks, but now I can purchase virtually any mutual fund. What BRIC and Gold mutual funds could be used as financial vehicles for profit during this crisis?
Larry, I think your prediction is very possible. My wife and I are of modest means, but we have done the following: A third of our assets are in tangible gold and silver(which we will increase to about half). The rest is dollars in hand, except for a 42K IRA account. We are both “semi” retired and drawing Social Security. We have the option of expatriating if the need arises. Also, we have 1.4 million Iraqi dinars which I expect will eventually pay at least 10 cents on the dollar.
When many of the currencies collapse, I think we will go to a small group of international currencies, probably three(with China being a possible fourth). I would love to get your thoughts as to how this will shake out for each individual country(ex. U.S. vs Mexico, etc.), especially noting the fact that the US has, by far, the most gold on hand(they will never give it up to another country).
I hold both gold bullion and gold mining stocks and trade the equities on a short term basis, going in and out as the price rises and falls. I am certainly bullish for the long term, but am concerned about the possibility of confiscation of bullion if the dollar is devalued.If this happens and it becomes illegal to buy gold, what do you think will happen to the price of gold stocks? What happens to the miners and their production? Does the threat of a shutdown of mining companies make silver a better investment?
Larry,
I have been reading your stuff for quite a while now and you seem to be a little ahead of the curve, so I think we all need to know now what to take our money stashed in US Government debt instruments of very short duration to, to take advantage of the trashing of the dollar now and to get a better yield on our investments, which is pitifully low.
Larry,
I was already becoming more concerned day-by-day. As usual you and the Weiss team are putting flesh on the bones of my beliefs. Personally, I have been moving my IRA roll-over (about 1/4 of our total retirement funds) into gold, resources and Asia. My larger concern is that the only option my 401-K gives me is a single international fund and no resource-based investments. The other options are all U. S. centered. If I read you correctly I should still be looking at those since 100% of our 401-K funds are now in no-reward money markets. But that strategy is certainly risky at current valuations. Is there some way for me to influence our 401-K managers?
Apparently your big on GOLD ( I take it that’s the real thing not mutual funds geared to mining of
this precious metal), treasuries and/or treasury money markets……NO STOCKS????????What
about hard assets such as timber??? I think you said to stick to such things that will have the
highest demands late? Is that correct.
I just recieved an EMail yesterday saying there are five gold stocks to sell immediately. They are
ABX, AU. AUY, GG, and HMY. Do you agree?
Larry - thanks for your letters. Your team needs to do a serious analysis of GLD and SLV. I have read articles that these funds are not truly audited and that they may not have any gold or silver. These funds’ prospectuses have been altered to allow a “non audit.”
What I would love to know where to put my money so that its safe. Do you think that funds like Central Fund of Canada and Central Gold Trust can be trusted to: 1) have gold and silver, 2) if the dollar actually fails, will my shares of these companies be safe from the government hands, and 3) will I be able to actually benefit from holding these funds in the event the dollar collapses, in other words, what will i be “paid” in?
Thanks.
Larry, will Silver also move with gold during the upcomming dollar deflation panic ?
You do not recommend gold right now, but do recommend gold stocks. Why not wait the buy gold stocks until gold pulls back? I’ve noticed some gold stocks are quite volatile when the price of gold drops, and if it drops 20+% as you predict, won’t gold stocks plunge too?
I think now is the time to load up on gold…Sounds like we are in trouble.
Larry,
If what you say is true about devaluing the dollar through repricing gold, we need to knowhow to position our selves financially, so we can move out of dollar-denominated equities, but much more diversified than only in gold.
Thanks.
Jim
What are you recommending to convert dollars to for preservation of value??
Would Gold stocks be a hedge? or are we looking at buying the actual
gold metal and storing it.
Is there a currency in the world that would not be as affected as the dollar?
question; ia stated, if the dollar devalues and gold oges up ib value, will silver follow and if these two metals do increase in value is beter to own the actual metal or will ETS’ work better and why?
Dear friends at Weiss Research:
Since your predictions spell bad times for the greenbucks, do you suggest we take some of our money out of our savings and invest it somewhere else, maybe buy some gold?
Thanks.
Andres.
I am concerned that with my age and my husbands’ age..we don’t have enough time to make any profit from investing for a few years…. advise please…if we did invest we would not have very much to invest…illness and loss of both our jobs has depleted our savings tremendously…
i have a “sizeable” portfolio with wells fargo advisors(axa-eqiutable varible annunity-muni’s)
the last crash cost me 40% as everyone else-its almost back,now-i hate to go thru worse as you’re suggesting
Give HOW , WHERE and web links to get US dollars into foreign currency in foreign saving, checking, or C/D.
I agree that the US government and all others who owe debt will want to devalue the dollar and their debt. But there are other parameters to consider. Please address the following questions:
1. What was the price of gold in dollars before the Bretton Woods agreement of 1944, what was the price of gold right after the agreement?
2. Why would the biggest (creditors or) holders of USA dollar debt (China, Japan, Russia?) agree to devalue the dollar as they would be the biggest loosers?
3. Which influencial countriess are in debt and would want a devaluation?
4. Anther (wave) theory suggests that the US dollar is reaching a bottom and will have a multi-month correction upward; with a concurrent move ($/ounce) downward by gold. I suspect you will be recommending that we buy gold now, yet this $ devaluation you are predicting may be 2 years away. What are your current positions in gold? Will you benefit from a rise in gold prices?
5. The recession we are now in was cause by a debt crisis. When this debt is washed out (through bankruptcies), the remaining real (non-debt) dollars will be fewer and will be able to buy more things (houses, cars, stocks). This will be a DEFLATION in the short term. The price of gold MAY drop in the near term. Why should we buy gold now at $1,000/ounce?
6. What will be the upfront signals that gold will spike? Will salaries spike also? If not, how will folks pay their bills?
7. Just before runaway inflation begins, what should those who have savings and no debt do? Use their exisiting money and borrow money to buy: gold, commodies and real estate?
where do short term trasuries stand?
We are currently renting and preparing to purchase a smaller house around $250,000. When the dollar is devalued what can we expect will happen to the price of this house? Should we wait to purchase or hurry to purchase?
we have our house on market stand to make 180,000 dollars what if we put in bank and dollar devalued over night?…should we put that in gold…..? and then how does that look when one wants to move to another country….how do you buy gold ?where do you keep it? how do you take it to another country?
I don’t know what Australia Phil Aland (18 Sept: 4.35pm) is living in but it sure ain’t mine.
Sure Australia has run up a debt, and it’s big - but but it’s not huge; and talk of a ‘Bretton Woods ‘ agreement, bankrupting the banks and passing a “Homeowners Protection Bill” - just not so. It is important that extreme statements are questioned and challenged - else they create a false base on which people make decisions, often involving large amounts of money.
There are several good gold stocks - the biggest of the 6 gold bullion ETF’s has the symbol GLD. An ETF that has gold mining companies as its base is GDX. One of the bigger gold miners with low production costs is GG for Goldcorp. There are plenty of bigger and smaller - bigger include Barrick that just recently unhedged its production anticipating large increases in gold spot prices. I have never owned it - I had Newmont Mining for a while - NEM. Now if you want not only GOLD, but also a COPPER miner, there is FCX - Freeport-McMoran Copper & Gold, with a huge open pit mine in Indonesia. Another copper miner is PCU (Southern Copper).
Then for more golod miners there is AEM (Agnico-Eagle), and AGXM (Argentex - in Patagonia,Argentina) and AUY (Yamana) and AU (AngloGold Ashjanti) and AAUKY.PK (AngloAmerican). For a large diversified Australian miner there is BHP.
For a silver miner in Idaho and elsewhere, there is CDE (CourD’Alene) and for a silver ETF there is SLV. Other silver miners include GMBXF (Grupo Mexico) GOLD (Randgold) HL (Hecla Mining) PAAS (PanAmerican Silver) and SSRI (Silver Standard Resources)and SVM (Silvercorp Metals)
Then there are more gold miners like EGO (Eldorado Gold) KGC (Kinross) MLRKF (Millrock) NAK (Northern Dynasty) RGLD (Royal Gold) SIOGF (SinoGold in China) !
This is far from all the possibilities out there - YOU DO YOUR OWN RESEARCH AND BUY WHAT MAKES THE MOST SENSE TO YOU - nothing is foolproof!
I asked my financial adviser what he thought about investing in gold. His comment was that gold is a hedge against inflation and we don’t have inflation. But it sounds like that is exactly what we will have if your predictions are correct. What does an ordinary person do and how do they do it to protect their retirement and savings? How do you invest in gold–how is it “spendable” when you need it?
This is something I sure haven’t thought of.
Well it seems that if you are invested in physical Gold you immediately get whatever increase is given to Gold.
OK, but how does that relate to the Gold mining companies such as IAM Gold, Barrick, Newmont, or Kinross etc? I would think their stocks would explode.
Then how does that relate to investments you have outside the US? I.E. I have a lot of my investments in China, and Latin America.
Since I’m trading in Fidelity with a Dollar account, is everything cut to what the devaluation is?
How will other natural resources be affected? Other than gold mining, I have oil crude and natural gas.
What happens if you have shorted the dollar or have or have an inverse fund?
Although it might be good for the US I don’t think China could agree to such a deal holding over 2 trillion dollars.
I was thinking I’m somewhat protected by having a most of my dollars invested in foreign stocks and options. Am I wrong?
It doesn’t seem right that all of the currencies would be devaluated the same. Australia certainly isn’t as bad as the US.
Hope this helps.
Cheers, Bill
If there is a devaluation or “gutting” of the dollar, will that make the stock market go up along with the price of commodities?
I have not done anything to protect approx $200k currently in a 5.5% CD which will expire 3/2011. We are 71 yrs old. We own a nice house in a Christian Retirement Village in N. Fl. and a vacation cabin. We have Soc Sec and corporate retirement. I was a trader of stocks during the bull mkt. of the 90s and haave been out of the mkt since 2000.
My husband does not want me to buy gold because he says if I read the history of the Weimar Republic, I would know that buying food was a big problem and a gold coin might get you 1 egg if you lived near a farm. He says 2009 technology can make communication and transportation impossible. What can I do with my 200k right now…as in this coming week . I see gold at $1010. I have owned gold and silver before, in a prior marriage and just need to know which company to trust to give authentic coins at a decent price. I would like to get rid of the IRA status. Should I just pay the 50% income taxes and “get er done?” I know of you from other years. Please help me with this problem. If you send me an address, I will give you my mailing address to write a letter back to me. I will pay you for personal advice if necessary. Sandy
Why should doubling the price of gold do anything but make whoever owns gold richer?
What should I do with my dollar denominated assets?
Considering that this action by the governments around the world seems likely. Not if, but when? What can we do to ensure that we retain atleast the same buying power when the US Dollar is trashed? The status quo, or something equal to it.
Larry
I am in the UK investing in the American markets - it seems to me that the Uk is probably in a worse situation than the US - am I correct in thinking that my money is better in the US and not over here?
There is clearly a big ‘bust up’ coming and in the light of what China has been doing in allowing it’s public to buy gold ,my bet is that gold is likely to be the anchor.Further more China has some pretty impressive reserves of gold putting it in an even stronger position for the future.With this in mind I think it is unlikely that American gold (or anyone elses fo that matter) will be confiscated.
Of course I could be wrong!!
I have read that GLD and similar ETFs actually owns no gold what so ever, and their shares are not exchangeable for gold. GLD borrows the 1000 tones or so of gold they claim to have from the Bank of England and HSBC. GLDs objective is to simply follow the price of gold. When GLD borrows gold, does this not increase the supply of gold available for investors to buy and actually reduce the price? I am concerned that GLD is paper gold with and unlimited supply and like other ETFs (FAS) could see a reverse split or even goverrment confiscation.
Larry,
Please, we kneed to know how to play it even if its some time before we implement it!!!
Thanks, Al
hello Larry:
what a valuable site and blog that you have. I work in be financial services industry and place great value on the general knowledge that you provide along with the other associates. If I could I would definitely invest with you folks.
now for a brief question on the setting of gold prices. How is it that the G- 20 can just arbitrarily set a gold price?does this remove market movement for gold? I do hope that you get an opportunity to give a brief answer. A loyal follower. Jim Smith
What should I do? Sell all stocks other than gold related ones. Then use the cash to purchase physical gold coins that are not considered bullion, such as professionaly graded coins or perhaps gold sovereighns?
Do you sell precious metals and in what form?
Under such a dark scenario (unfortunately, I find it quite plausible) what effect would it have on Social Security value / purchasing power? Finally, most of my funds are invested in stocks linked directly or indirectly to China. What should I bulk up on for protection? Commodities / natural resources - oil, gas, uranium, gold, silver, copper and China/ Asian stocks, Canadian commodities? Appreciate your input. Jim Sliney
Hi, along with your predictions, check the G-20. they gave IMF unlimited power to pring a new money.
then, the proposed eliminating the IMF and replacing it with A WORLD WIDE FEDERAL RESERVE.
No one mentions it, but the CFR is in TOTAL CONTROL of Obama and ever thing that is going on in this government, and the world. THAT is what needs to be exposed . None of the Talk Radio people or anyone else mentions this.
For more details, Check with Jony McManus, the John Birch Society. Bill t.
what about the canadian and australian dollar? buy oil and gold stocks? thank you for your reports
Yes, I am interested. Bob Chapman states one way is Canadian,Swiss, or Norway currencies alone with the obvious owning Gold and Silver and the Gold stocks. Wouldn’t those currencies also be effected
I receive a federal pension. there is little I can do to change the terms. I just get a cheque. I have some gold and silver on hand, but not much. any suggestions?
tony
My concern is that no matter what The Congress, The Fed & Administration do, they will not change their
spendthrift ways. I was a youngster in the 1927-1941 depression that really did not end until almost 1950.
The banks were nationalized in 1933 by FDR’s edict that took the gold away from their vaults as their real reserve. The only solution that I see is the reestablishment of hard currency, silver and gold coin, and the
elimination of The Federal Reserve Currency to one that is totally exchangeable for silver & gold. Since,
I don’t believe that will happen, how will all of this end? & how do you protect yourself against local government sky high property taxes? and the estate and federal income tax? We sold the family farm in 1992
because of excessive and confiscatory property taxes.
Hi Larry,
Thanks for all your commentary and uncommon wisdom. After Reading your info about what we can do to protect ourselves, i quickly thought of the term “financial survivalist”. Perhaps not the food hoarding type - or should we be purchasing extra goods now in order to save $ on increased costs in the future…the dollar sure buys more now.
One of the largest investments for most, is the ownership of their house. When the dollar goes south, will homes only be worth half of what they were, and if so is renting a good idea - or at least buying down in your housing ’style’ ?
What can ‘most folks’ do without the large cash reserves to ‘weather’ the coming storms ?
Larry, There are maney excellent questions in your blogm not to mention real life concerns about how to eliminate our individual “dollar risk” and where to invest to come out ahead instead of lose ground. .
What do we do with our retirement money??
I’m canadian, but most of my money is in US dollars. I’m close to retirement and very worried. Please advise.
Is it to late to invest in gold? And as everyone else has asked, what types of gold should we invest in?
Thank you for sharing the results of your research & experience. I believe it would be extremely beneficial if you let readers know if the recommendations made in The Ultimae Depression Survival Guide (I may have missed the title a bit; I am away from home at the moment) are still valid. I am especially interested if using short term treasuries (money fund or direct purchase) is still recommended. Any other confirmations would be helpful. Thanks!
I never hear you talk about commoditys, and ivesting in gold on the commodity exchanges.
I hear of the need to move to the purchase of gold to protect personal savings and retirement savings. My question is: If people exchanged all of their savings, retirement accounts from the US dollar to gold, A. How do you buy it, and B. How do you have access to your money in gold to covert it back to cash should you need it?
Thanks
Thanks for your warnings!
But, my question is this: Why debt only is worried?
If massive unserviceable debt is the problem, should be same to the credit which must be exactly the same amount.
If economy of most nations are dying from debt, who are the creditors?
Chinese government? I don’t think so.
Most likely, they would be handful of shadow bankers.
Can you give us any information about who are the top ten world creditors?
Thanks again.
It sounds simple but I know it is hard - Tell me what do do and when to do it.
Bill
What do you think of real estate as a hiding place ?
Larry,
I have cash currently in a money market. Where should I put this cash to preserve its value if we should have a sudden death situation as you have described? Also I have my retirement account in a 401K with T. Rowe Price, what should I do with all of the money that has accumulated to preserve its current value. I have silver. Is gold better to own than silver? Should I purchase a house an finance it and pay it off with a new currency. Where is the best place to put all of my capital to preserve its value?
Chuck
Under currant circumstances Is Gold the place to have your money at this time ?
With the coming of I believe major inflation, what should you do with real estate, will it inflate and will people be able to afford it after it does.
My retirement is tied up in a 401K plan that doesn’t specifically invest in Gold. To remove it and reinvest on my own would lose me 45%. Is there a way to know within the 401K what to put money into. What should I look for and what type funds do I invest in or what information can I tell the officers so that they will understand how I want the money invested safely?
When would you suggest Is the price we buy USCOX. You mentioned $5.89 was a good entry point.
Is that price the target for jumping back into USCOX.
Sincerely,
Fred Estanich
Larry:
Thank you for sharing all your wisdom. When is your “briefing” scheduled to take place? I don’t want to miss it.
Ok, I’ve been quietly watching on the sidelines. I have often thought how is this going to play out, I am sure I am not alone. I personally do not understand stocks on the rise, maybe because they were so “cheap” or/ a government influence?. I am concerned about the dollar, gut feeling maybe..
How will this effect FDIC bank accounts? In laymens detail, please. How do we balance the value? Wasn’t it the value of gold we held here? Forgive me as I am not “the savvy investor”, far more conservative.
Hi Larry,
I think that you should include recommendations for foreign stocks, royalty trusts, etc. that pay dividends in foreign currency exchanged to US dollars for US investors. These look like good hedges against the devaluing dollar. Perhaps others like Enerplus Resources, which has been recommended by both you in your Real Wealth Report and Nilus in Dividend Superstars. From what both of you have indicated in your reports, this appears to be sound reasoning. Thanks for everything.
Thank you for sharing your wisdom. When is your “beiefing scheduled to take place? I don’t want to miss it.
Wouldn’t you be smart to buy dollars at the lowest pt, to recoup your loss?
Is foreign currencies a GOOD place to protect..preserve our dollars? Where else could we put our dollars?
discuss the risks of buying dollar denominated foreign adr’s on our U.S.markets as well as purchasing any foreign equity denominated in the dollar including etf’s of foreign currency e.g. fxa.;fxc etc. held in DOLLARS
Also address the holding of gold mining shares e.g. ego.;gg?-also like gtu, gld,—which store undesignated bulk metal which may be adequate or not reflecting the shares held;– rgld .smu.slv- but all being held in u.s. dollars.As the dollar devalues what happens to the above examples and to our investments? I assume that whatever entity {dollar or replacement currency}is representing the gold shares etc.it would be multiplied to reflect the value of the underlying commodity
To think that all would be orderly is unrealistic.All hell would break out .The country is really top heavy with beggars living from gov.check to check!
So, what do you recommend to protect the value of our money?
Hello Larry
I appreciate your time: Question: Should the dollar devalue/ what defense could I have to hang onto some value in a 10 yr annuity contract ?.
I appreciate your advise and service in the past.
Seems the best way is to have hedge plans implemented. Gold, the dollar?
Larry,
If gold’s price were raised to $2000 would my mortgage payment be doubled? Also where can gold be sold to get the best price?
Hi, I am a small enterpreneur and lost a good share of my retirement funds last year.
What is left…..is it safe to invest in Swiss Francs which seem to be pretty stable
during all the ups and downs of the market?
Thanks
Larry
Would it be more advantageous to own physical gold and silver. How would it be used as every day expenses and purchasing power or would one exchange it for current dollar values?
Dear Larry: Please explain more why raising the gold price to $2000.00 will result in slashing the dollars value? Thank you.
Most of my retirement money is in common stock. What should I do now to protect my investment from the fall of the dollar?
larry, i haven’t heard you mention foreign stocks… seems like if in fact the dollar plunges then that should be offset by the value of foreign stock… also i haven’t heard you mention the PERTH MINT certificate program that’s guaranteed by the australian govt and also insured by loyds of london.
your comments would be appreciated.
thanks bob
If the substantial devaluation of the dollar is to take place based on the setting of a new value for gold, What currency would we use? If purchasing gold or silver would protect our dollar valued investments whether in ETFs or stocks or index funds, it would appear that timing the switch to recommended investments to protect against the great devaluation would be swamped by millions of investors thus causing these investments to be over bought. How would one anticipate the shift and how much of their dollar investments in index funds, stocks, mutual funds or other investments should be moved from dollar denominated investments to other vehicles?
What would be the timing of investments to protect against the decline in the dollar and what propotion of my investments should be funneled into these investments?
Im already following Claus’s advice. How do I follow you and him with the same money? Are you collaborating with him and does his strategy include your thinking? (rhetorical)
Larry, I’m specifically interested in approaches that are centered around the use of Options and Futures, for both Gold and Currencies.
I’m also interested in a service that specifies which of those resources and corresponding products are likely to move soon, including: When, In which direction, and with both price and time targets on each one.
Thanks,
— G
Besides buying Gold, what other investments can a person with savings/CDs make? Unfortunately, I do not have the minimum investment requirement of $30 million to qualify for the Rockefeller Investment Management Team.
Foreign Bond Funds? Some sort of ETFs? Could you just provide some options that would defend against this declining value of the dollar. Do I fly to Switzerland and get Swiss francs? I don’t think they want our dollars.
Do you want me to pay you before you’ll give me the list of options? How about my weekly unemployment check of $138? Would that cover it?
I look forward to your response.
Dear Larry - Thank you for your clear understanding and help. My husband and I have all our money in an Insurance annuity (Jackson National Life Insurance Co. in Lansing Mich.) To take any of that money out would cost a large penalty. We are both 75 years old and in great health. Any suggestions, particularly regarding buying gold and silver.
Thank you
Carolyn Mondress
Hawaii
I am a big believer in the KISS principle. I only trade the ERX etf. If I am holding ERX should the G20 spring their trap will I be protected to some degree?
Larry,
I just thought of another question. If gold doubled and expenses doubled does this mean that income would also double? If not everybody would probably lose everything they had worked years for and the government would have a revolution on their hands.
No country, no wealth, no investment. Nothing to be protected.
SAVE THE COUNTRY IS PRIORITY.
I am canadian and most of my investments are in canada, Please inform how is it going to affect me.
If the price of gold is dramaticaly raised,what chance do you see of the Govmnt.then restricting the amount of gold that can be owned by an individual.I understand that this was done many years ago.
regards Mike
Dear Sir ; I have 24% of my RRIF in Gold, and 20% in my unregisterd (open) Porfolio.In your opinion is that enough. I also have 300 onces of 999.9 Silver bars.
Thank You
george
Larry,
I have 15k in cash…with no other savings…what should I do?
Steve
re Sudden death for the U.S. dollar
A few questions on this:
how can G20 artifically set the price of gold at 2000 ? Gold is priced by the market.
how would raising the price of gold impact any of the government debt problems. Baring default, the payments still have to be made but the governments have no money and taxing power is all used up. The game will be up when they have to print money to pay the interest. This will occur as soon as interest rates come up - the last time they got higher than 10% in the Carter administration. Default is the only way out of this.
If the US govt defaults on its debt, what will that mean for the ordinary person ? I would like to know what happened to ordinary persons in Argentina and Russia when they had their recent defaults.
To what extent are the United States and China locked together with respect to dollar denominated assets? What is a good indicator of the rate of extrication of Chinese trade from the dollar?
I would like to know your recommendation as to help prepare for such a scenario.
Hi Larry-
What are the best gold related stocks to invest in currently? I know nothing is guarranteed to profit, but need some guidance. Also, what about grains, sugar, cotton, etc.? I’d appreciate any suggestions on what specific stocks to look at.
Thank you
Shauna
Please explain to me,
If GLD valued in dollars rises, but at the same time the dollar has fallen by the same or perhaps even greater percentage, have I made any gain at all or just retained the same value?
I have heard the government is thinking about shutting down the commodity ETFs like GLD and UNG as being “too speculative”? Is there any truth to this? If so, how do we protect our holdings?
Larry,
You’ve never mentioned natural gas as one of the natural resources to own. (Sean Broderick did mention it, specifically UNG, 4-8 weeks back.) Why/why not ? And if it should be in our portfolio, how do you recommend we play it ?
#2 Should we all be remortgaging our house to the hilt in order to benefit from the same ’solution’ Obamabernake come up with for the country? I am sure IF the answer is yes, you would not recommend putting those monies into equities………….but in what ‘inflation proof’ vehicle should we be investing those monies ?
thanx
My entire savings is in an IRA account at Schwab. I lost about 185,000.00 during the down side of the financial mess. At the time I had a financial adviser making decisions for me, (bad move) and I lost in Real Estate, Lehman Bros, GM, and Citibank. I know, no one had a crystal ball to tell them what was ahead. Anyway, my question to you is what can I do at this point to reserve what I have left, about 300,000.00. I will be 69 in December, so longer a young chick. But I have excellent health and plan to live as long as my Lord deems me to do so. I do have some income I can live on very carefully not touching my IRS until age 70 1/2. I would appreciate any advice given.
Sincerely,
Carol Ferros
Do you recommend changing u.s currency to another currency? If so, is putting my u.s. money into a Canadian account a good thing?
Thanks
Joanne
I would suggest that you do not assume that everyone is a US. citizen as too many other financial-advice sites do. You have many readers from other countries (I’m Canadian). I refuse to invest in any US. stocks etc. as I’ve had too many negative experiences with your IRS.
Please discuss the idea of a Canadian buying a Chinese or Australian stocks valued in US$ on a US. market. What will happen when the Renminbi rises, the US$ drops and I’m living in Canada like “piggie-in-the-middle”?
Thank you.
Dear Larry,
And I mean that sincerely; both you and Marty Weiss are very close to me, because you are so very sincere in your efforts to protect and educate us neophite investment slobs. Thanks !!!
Personally, you are doing everything that I could possibly hope for right now. I read everything you write and try to the best of my ability to interperate your instructions and perform as best I can what you would think best. I am not alluded by hope of perfection. Neither am I able to watch your movies, as personal as they are. I simply don’t have the time.( Farming is my lifestyle; physical work is my passion. Time is my enemy, while reading is my pleasure.) It is raining now , so I’m forced to be inside and am able to read the “machine”.
Thank you, and keep up the good work. Dave
Dear Larry,
I do not believe that we’ll see another Bretton Woods but a gradual erosion of the value of all currencies issued by heavily indebted governments. Markets will decide on the value of all currencies but I believe you are right insofar as the USD is the most vulnerable. The CHF could be the safest.
Thank you for your messages,
Jo
Questions for you to address, if possible, at the next e-conference:
How will the government go about confiscating gold from the general public(as it did in the past) before the price per ounce is raised?
Please show exactly how(chart?) the new price of gold will affect prices of goods and services, and in what ratio to existing dollars in circulation.
How will world governments be involved in the new curency?
Will a devaluation of all debtor nation’s currencies follow when a new world reserve currency is chosen? Why won’t nations less in debted than the US, or nations with a surplus(China), object to this deliberate devaluation?
What roll will gold have in this new world reserve currency?
What safeguards against inflation will citizens have when the new world reserve currrency takes the place of the dollar?
Hi Larry,
Thank you for offering to answer our questions. I have had so many questions formulating for some time now, that I have actually stalled in the furtherance of developing my company. I am in the process of trying to find and receive private funding for my three technological inventions. I am currently lost as to which direction to I head, such as, do I pursue foreign countries to develop and market my inventions now (this feels a little un-American). How do I handle or where do I place the private Grants and contributions I receive without breaking any monetary laws? Where or how do I find a Mentor or CEO/Project Manager that can assist me and steer me and my company in the right direction with your knowledge? I am trying to start a company that builds businesses, products and services that serves the special needs community as a whole, as well as the disadvantaged. In addition, permanently funds the life of some special needs individuals, so their parents can rest. Thanks again for any advise.
Just an afterthought.
How do you explain the fact that many governments are selling their gold reserves? Eg. Britain, the US., Canada in the form of coins etc.. If they reduce their gold reserves how will this affect the value of their currency against other currencies? If they have lower reserves does this mean that their currency is effectively devalued?
Have they known about this plan for a number of years? Gordon Brown, when he was Ch. of the Exch., was selling Britains gold reserves like a mad man. Was that all part of this plan?
Hi,
Sounds like gold will be the place to have your money. I have some gold stocks, but would like some physical 1 oz. gold. Where can Maple Leaves, Philharmonics, etc. be obtained? Thanks. D. Dunn
Larry, Most of my savings are in my 401k. My 401K investment options include below. With in these funds which should I be invested in at this time?
Large Cap Growth: FID CONTRAFUND, FID GROWTH COMPANY
Large Cap Blend: US LARGE CAP BLEND, INDEX EQUITY FUND
Large Cap Value: VANG WINDSOR II ADM
Mid-Cap Growth: TRP MID CAP GROWTH
Mid-Cap Blend FIDELITY LOW PR STK, VANG EXT MKT IDX INS
Mid-Cap Value: VANG SELECTED VALUE
Small Cap Growth: GROWTH EQUITY
Small Cap Blend: NB GENESIS - INST CL
World: VANG GLOBAL EQ INV
Foreign: FID DIVERSIFIED INTL, CAP GARD INTL SM CAP, VANG INST DEV MKTS
Diversfd Emerging Mkts: FIDELITY EMERG MRKTS
Specialty: AM CENT REAL EST IS, PIM COM REAL RET I
Convertibles: VANG CONVERTIBLE SEC
Bond Investments
Long Government VANG LT TREASURY ADM, PIM REAL RETURN INST
Intermediate-Term: PIM TOTAL RT INST, VANG TOT BD MKT INST
High-Yield: TRP HIGH YIELD
Stable Value: INTEREST INCOME FUND
International: AM INDPD INTL BOND
Short Term Investments: US TREASURY FUND
hi larry my comment is that we should get back to the basics. cut salarys cut retail prices and keep living as human beings and not a bunch of rich idots. the cost of living is so damd high we are in a ression but every thing just keeps going up. the rich are mad because they cant get more out of the poor. lets face it the poor are BROKE.one last thing remove all of the people in washington that is in
goverment to another country. they have done a bad job for a long time now it is time to go.thanks for
letting me rant but that the way i feel. thanks floyd
My money prefer receive and it as most faster if (or) it possible
OK now that you’ve raised the alarm…what’s the solution….buy gold at over $100 per oz…….?????? Please advise….
Hate to say it, but I don’t understand how the value of gold can be changed by the stroke of a wand by G-20 or whomever; isn’t the price of gold “regulated” by the open market? Also, I’ve never understood how owning gold helps in a total brake down; would you take a gold coin to go buy some gas or bread?
My problem is “deer in the headlights” with what to do with cash short to medium term; now that I’m almost even with the market–and I want out– what to do with the cash?
Thanks
1. It is not likely a response to this scenario can be laid out with a timeline and a recipe: buy gold om xx/yy/2009 @ $1000 or less, etc. But can you lay out a few indicators that might tell us a good time to buy protective commodities, etf’s etc.
2. Some commentators are arguing for a possible short-term continuation of a rally in stock process. Should we wait to put our protective actions in place and see how this rally plays out?
Larry, If you have absolutly no doubt that gold will appreciate substancially over the dollar, then why invest in a treasury only fund rather then in gold. How can I protect against the dollar adversly affecting my buying power?
Thanks Robert
We are drawing close to retirement and have decent money in savings and investments plus will have a steady stream of income from a defined pension plan and dividend paying stocks. We are mostly concerned with preservation of the money we already have, not necessarily growth. Please be certain your recos, should you give any, include those to preserve capital for folks like us, and are not too risky or speculative. Thanks!
In light of your warning about the decline in the US dollar, what should investors do with exchange traded funds relating to south-east Asian countries (but, trading on the New York Stock Exchange in US dollars)?
So if all the world devalues their money at the same time does not the current dollars held still buy the same amount or be of the same value relative to the other currencies? To me one would only lose if one currency is devalued when others are not.
txs
rt
As a Canadian investor, where debt is less of a concern and the resource economy looks bright for decades to come, do you think the effect of currency devaluation will be felt equally amongst all countries? Also, access to most international ETF’s still involves buying them through the U.S. which exposes everyone to the (greater) likelihood of a faster drop in the U.S. dollar. Would we not be better served to buy Canadian commodity stocks, listed on Canadian exchanges, and with Canadian currency?
Many thanks for your past and current guidance.
I just sold my home and am renting. A large amount of money from the sale is in a money market.
Besides gold, what should be dones to protect this money from devaluation? Should I buy another home? Trade for another currency? Exchange it for gold?
What is the best way for most Americans to invest to protect their buying power? Thanks, Jim
Ditto, William Bailess, 9-18-09
What a mess the USA is in.
Simple question:Are any of
following safe haven for our
currency?
1)Treasury Money Markets
2)Annunities
3)Equity Investment in Retirement Facility
Norm Roberts
I have only liquid capital. What should I be doing to protect myself from the devaluation of the dollar. Where should I
keep it, and in what currency. I just don’t get this. Please help. I’m recently retired.
9/19/09
Dear Larry,
Pertaining to your email “The Death of the Dollar”, am I safe in the info I receive from all the people at Weiss & all their emails I receive from them each day??? Or will I have to find some other thing to invest in other than Your Newsletter & The Safe Money Report??? Are good ETF’s from Weiss safe to be invested in. I want to stay in the Natural Resources & Precious Metals. Please get back to me ASAP. Thanks so Much for all your valuable info, Sincerely,John S
Larry - Your idea is beyond me. With some of the major powers pointing nuclear missiles at each other - How are they going to agree to bail out the US? Some of these countries would be very happy to see the US play second fiddle or less.
Don
Larry.
every one has just about the same questions .
why not cover it all with one e-mail/ letter.
looking forward to the answers.
thanks,
Drew
Well, I’d like to know in what form you would recommend that we buy gold, from whom, and the phone numbers that would accomplish that.
If the dollar is going to plunge we should also get out of Treasuries???
Should se buy bullion or GLD or GG or SLV?
thanks allen
Dear Mr. Edelson!
I have subscribed to The Foundation Alliance and I am following all recommendations accurately. I am also listening with great interest to your Uncommon Wisdom. My problem is that I live in Vienna, Austria and so far all recommendations have been on stocks in USD. The same problem is for me with gold, silver, oil - in other words with all the commodities which are traded in USD. If the gold price is now rising how can I protect myself that I do not loose most of the gains through the drop of the dollar exchangerate. I am looking forward to your advice.
Best regards,
J. Berger
LARRY, SINCETHE BOTTOM LINE IS CASH, WHAT DO YOU DO WITH CASH TO PROTECT ONES SELF FROM THE DEVALUATION? WHAT VEHICLES WOULD BE THE BEST INVESTMENTS? WOULD YOU BE SPECIFIC.
I totally concur with your analysis of what is happening to the dollar. A couple of years ago, I started following OI’s recommendations to heavy up on precious metals and mining stocks in my small portfolio. I have been retired already 21 years and am managing my own IRA. I’m wondering what you think I should do about a 6,25% mortgage that has $157,000 and 25 years to go. The house had a recent market analysis valuing it at $300,000. Should I try to sell it now, pay it off early, or just let it ride? I live in the Historic District in Columbus, Georgia, where house prices have dipped a little, but not as badly as in most of the country.
Thanks for any input you can provide. I always enjoy your columns.
Eric Maddox
I’ve decided to sell stock and buy gold and silver. At least I know I have something with value when all is said and done.
I understand that some of the GLD ETF is not in gold but only on paper. How does that impact owning it?
Why does the EURO continue to get stronger even though EURO dominated countries have similar problems as we have?
Would buying stocks of countries with strong currencies help to protect the portfolio?
Thank you for your insight and honest assesments. As always, looking forward to your recommendations.
Hi Larry, This sounds like Germany after WW I. They wanted to pay back the Brits and the French with devalued money and created the hyper inflation which followed. BUT I do not see how any government or group can set a price on a commodity.Doesn’t the market do this?
Martin
Land, water and oil will retain value. It may be more or may be less, but they are to much needed to loose too much and are more than likely to go up in value.
How would the increase in the price of gold affect the stronger curriencies of the world , such as the Chinese Yuan?
Another question; If the price of Gold doubles-what effect would this have on other precious metals?
HOW DO WE SURVIVE? WE WILL NOT BE ABLE TO EAT GOLD SO WE SHOULD BE IN THE COUNTRY GROWING FOOD?
I’m sixtyfive and retired. Should I payoff my mortgage now with the cheap dollar? I would use half of my savings to pay off my debt.
Where are the best places to purchase gold Austrian 1 ducat and 4 ducat coins
Thank you, CEC
Larry, I have participated in this Bear Rally to the extent of only 50% of my holdings (with advancing stop-losses) and holding back about 50% cash awaiting the “right time” for entry into gold and silver.. now it looks like “holding cash” has a greater risk…. As we get the “‘09 correction” I think I’d like to make the move.. How ought I allocate funds into Gold, Silver, and the mining stocks? Steve
I’ve enjoyed your input to date; thanks
Larry:
Thanks for your revelations of the USD demise. Why has the S&P500 increased
by 50% from the March, 2009 low, considering the debts present in the US and
other G20 nations and the weak economic recovery?
Your advisories assist my investment decisions. The Foundation Alliance & Weiss
Research present excellent insight of the global economy, the stock market and
precious metals trends.
Dave Pearce
I don’t know what to tell you I need. I pay you and yours to tell me what I need to do to protect myself and to make a profit. Please advise me as to your suggestions to do just that. Tell me what you are doing to protect yourself!! Thanks, Bill Elliott
Larry,
I am a builder/developer with 35 years experience. I have “slashed” my company this past year by ultimately laying 8 employees off (the first time in 35 years I’ve had to do this while being gamefully active in the construction industry) and leaving only myself and 1 part-time employee, taking no personal compensation for 12 months and working my tail off to reduce debt. I have achieve a portion of success. My debt has been reduced by 65% in 9 months and more reducton seems likely before year end. Over the years I have accumilated 8 rental properties which I own 6 free-and-clear.
Question: What do you believe will happen to real estate (buildable lots and finished structures) if the dollor collapses as you mention and gold surges?
What will happen to stocks?
Will dollars become like pecos where it will take $100 to buy a loaf of bread?
If your answers above are such that devistating inflation collapses our economy, what is the safest path to take?
Terry
I have 5 year CD’s at 9 1/2 % that will mature in 2012, and a government thrift savings retirement plan. Will they be safe?
Assuming one is invested in divinend paying equities with a large capital gains besides , Some ETF’s and strong Municipals maturing in 2017 , no car or mortage payments , in good health. Social Security and pention pay more than half the living expenses currently , it seems to me it would be prudent to sit tight as if devaluation of the dollar would be relative after the banks comply with Bazel III . The other solution would be to sell all the gainers and buy gold coins , which could be conscficated with the stroke of a pen or stolen if held in physical form. Kind of a delema . A friend is buying land, as he knows dirt. Who is correct ?
Stay Blessed,
Ron
If the G-20 members agree to automatically slash the dollar value by half simply by setting the price of gold at $2000.per ounce,how does this event cut in half the debt obligations recorded on the debtor countries records that call for repayments in specified dollar amounts ? If the debtor nations have to repay in dollars , they will be in the market place accumulating dollars to eventually repay their debts…Would appreciate your further analysis why the dollar would lose half its value if gold goes up in value…
Have followed Martin’s advice about putting cash in treasury momey market funds; but when one is retired, it is unacceptable finally to not make any interest whatsoever and continue to use the capital with no way to replace it…what to do now if the dollar falls dramatically in value?
Also, what happens to the value of equities when the dollar crashes; i.e., if Exxon is worth 70/share today, what might happen to it at that time?
Thirdly, do holdings in GLD along with shares in gold companies help at all if they are sold at some point and paid off in US dollars?
Does it help at all to buy CDs from EverBank, for example, in Australian or other foreign currencies which will also be converted to American $ at some point.
We really need to know what to do specifically…
Thank you Larry, et al, for your continuing warnings. I, too, would like to know if Martin’s long-standing advice about short term treasury bills (and funds of same) is still valid and still the safest place for money that would otherwise be in cash. I think from all that’s been said that it’s not as good a placement as gold would be unless one has other funds for gold. Please give us your recommendation on how much of a person’s net worth should be in gold (and separately in silver). I would also echo the above question(s) about investing at this time in residential real estate if it can be obtained “at a bargain”. Presumably real estate will eventually again rise in value, and, hopefully doesn’t have too much farther to fall in the present chapter. Thank you for your guidance.
Debra
From the posts, the consensus seems to be confusion as to what investments are best. I seem to take two steps back for every step forward. Where should cash be? What stocks or ETFs are best? Should we invest in gold ETFs?
Would you buy the canadian dollar or the aussie dollar, to try to make money from our dollar falling ?
Dina
What type of investments should we be making at this time? As a Canadian
we have been comtemplating buying U.S. Funds to in turn purchase Real
Estate in the U.S. as a winter home. Would this be a wise thing to do at
this time or are we better off to keep our money in Canadian Currency?
I would greatly appreciate you touching on this topic to educate your
Canadian people who are reading your articles.
Thank you for your informative information, keep up the good work!
I also wish to know if it is good to keep cash solvent at this time when
everything is so uncertain. Interest rates are so low, it is hardly worth
investing in Bonds or other fixed investments at this time. We are already
retired and do not have a long time frame ahead to recover. It is a real
worry and concern for people our ages to know what to do, especially when
we do not understand things too well. You have been a great help as you
write simply and clearly but at times I cannot understand what you are saying.
Is it okay to ask questions when uncertain about something?
One more question, if purchasing gold, what form should one purchase it
in?
Is the swiss franc a safe investment??Is the swiss franc backed by gold??Who owns the Swiss Central Bank?
Larry,
What foreign stock would you recommend? I am interested in resources based companies and high tech and medical services. You talk a lot about China. Some smaller counties I would like better information on are Norway, Denmark, Israel, and Costa Rica. These countries have one or more oil, high tech and medical services. India is a known high tech giant and so what is there in that country? China bothers me because of its Communist government. There is also widespread disorder, which though largely unreported, I am aware of. China is known for concealing news and I wouldn’t want to invest in such a country.
I need information (solid web sites) on how to set up savings account(s) in other currencies. Would buying and holding, as a hedge, certain currencies in international banks as the dollar collapses, be a good strategy?
My concerns revolve around what happens to state(California) and private pension plans, 403b plans and US Treasury Bills and/or money market funds consisting of those same kind of assets. Most of my savings are arranged in close accordance to Weiss reccos which I give credit to my stiil having some assets at this point. I await your views and suggestions.
Larry for those of us in Europe( holding Euro’s) what should we do to benefit from the change in the dollar.
Mostly questions
Should most of my cash be in gold?
How about buying gold stocks?
Would it be a good idea to pay off my daughters home mortgage?
I hold U.S. savings bonds, should I hold or sell and invest the proceeds in gold or stocks.
I AM BY NO MEANS AN EXPERIENCED INVESTOR. HOW DO I TAKE PART IN WHAT YOU ARE ADVISING ? WHERE DO I BUY..WHO DO I SEE..? GET TO THE BASICS, OR YOU ARE NOT REALLY HELPING ME. I DO FOLLOW THE MARKET AND THE NEWS. I THINK YOU ARE FULLY CORRECT IN WHAT YOU SAY..BUT GET TO THE BASICS..AND REALLY HELP ME AND OTHERS LIKE ME OUT ! THANK YOU VERY MUCH..MIA ARCHER
No comments yet, just a couple of questions.
I am a new subscriber to your Real Wealth Report, and just got my first issue (the September issue), but I am not clear on what to do when I don’t own any of the positions. Specifically,
1. You gave instructions for the core gold positons - to purchase on pull backs —- as I am also new at investing —- how much of a drop in price do you consider it a pull back? Please define pull backs for me.
2. The ‘What to Do’ colume for the Core Natural Resources and the other categories were left blank —- does this mean not to add to the positions that have a ‘Hold’ reco?
If one has investments (not stock) that are easily converted to cash, should one do so to take the cash and buy gold or quality gold stocks?
If I follow your thesis Larry, and I’m not sure I do, the best position to be in is heavily in debt. Yes?
My wife and I are in our middle 70’s with our cash in intermediate bonds now. Should it be in VGPMX (precious metals) for safety? Also a small IRA @ roth ira now in a variety of funds with Hartford. Our income is moderate and our cash $45grand is all we have to help in emergency income.
.
What is the posibility of the U.S. gov.confiscating all privately held gold as in 1933?
If not the above what about converting 401K and IRAs into treasury bonds similar to Argentina?
So, what do I do? Buy some gold ? I have received several marketing flyers from companys selling gold. Another question:What kind of gold do I buy? In the 1930’s, I believe the U.S. gov’t. confiscated certain types of gold. Can they do that again?
Any information will be appreciated.
WM
It would seem to me protecting one’s wealth, given the hold the “IRS” holds on the banking industry via reporting laws within the US and abroad makes safety nearly impossible. Other than personal possession of gold , silver or Real Estate, can you educate one who is less than wealthy and simply wishes to protect their retirement nest egg ? Is there any legal avenues to protect ourselves from abusive Government taxation and ignorant Politicians believing unrestricted growth to “Socialism” is the answer, (never mind historically it is doomed to failure).?
Can’t wait right now. I’ll look for your response later.
Larry:
The drop in the value of the dollar wouldn’t that increase and benefit our opportunity to sell our products made in the USA globally and create more business and jobs here? The yuan currency value is not what it should be, however, China is keeping it lower to sell their products made to us as we are a major consumer oriented country via credit card purchasing.
If China, India, Brazil, Japan, Canada and emerging market countries…etc. don’t sell their products here, their economic growth would slow down . News is Canada is experiencing a drop in American tourism due to the increased value of the loonie which affects their local economy and businesses. President Obama has put a tariff on products from China despite China’s objections. If the dollar value is going to drop why is China trying to sell their products here which will be purchased with dollars and if the yuan value is what it should be Americans will not buy their products that will be higher in price. The economic growth in China, India, and southeast Asia has been brought about largely by American companies outsourcing jobs to the far east and is still occurring today and exporting products manufactured back to the USA. If you look in our retail and department stores you will see alot of items made in China flooding our market.
American Hi-tech research and development in the Silican valley, Califorinia is being routed to Hong Kong and manufactured in plants in Taiwan and mainland China due to cheap labor.
In my opinion the best investments would be in commodities, drugs, produce, real estate and household items of daily living.
As with any sea change in the economy, timing is everything. Pin it down the best you can!!!
I am unclear on the process of buying and selling gold.
Is it true that you can purchase unlimited gold without it being reported to the government and the reporting comes into play upon the “selling” of the gold. Anything over $9,999. would be reported?
Also do the same laws apply to silver and platimiun?
Thank you in advance for this information.
Donna In Spokane
Larry- Reading the comments above, many folks are concerned about the value of gold under various circumstances. I am concerned that the government might again confiscate gold from citizens as FDR did in the 1930s. It would help me to know exactly what the citizens who surrendered the gold got for it from the government — did they get the then-current value in dollars, or did they get a lesser amount, or nothing. Assuming that the Obama administration follows the same senario at some time in the future, the answer to this question would go a long way towards helping investors decide if they should own it (gold), how much, and when to get scared and sell it off. Thanks.
i would like to know if you think the iraq dinar will reinstate at pre war value or just stay the price it is now? thanks
Will our Cd’s and annuities go down the tubes? Our banks are the strongest and the insurance companies are the top 4 in strength. Say you buy gold coins to trade for bread? What store will be open to sell food? Or gold stocks? Cash them in for gold or dollars ? Sounds like the fortunate will eat their gold in some form. Sounds like anarchy or riots are on the way when everything fails.
Time to pack up for the newest Y2K time period, except this time, it might be real. And to make sure we are ready for the Rapture that for sure is on the way.
My ideas on how to invest expecting a dollar devaluation follow. NOW WHAT ARE YOUR IDEAS.
Buy stock in economys that are solid. Brazil, Canada, and Austrilia.
I like DXO a oil ETF in our market. Profit potential is amazing.
Buy retal property in the USA in the right locations. People will always need to live somewhere.
Precious metal is OK but my gut says no. I have lost large amounts of money buying gold and silver. It simply has not worked for me. Too many tricksters are in these metal markets. Plus, I can loose big waiting for the crash.
Larry,
I’m currently a subscriber to your Foundation Alliance service. I would like you to incorporate a dollar-devaluation strategy into that service for these obvious reasons: If you and the Alliance are successful at timing the market for us, as you have been so far, what good will it be to us when all the dollors we’ve made lose a big chunk of their value? Instead of timing stocks and ETF’s, shouldn’t we be buying hard assets that not only appreciate but also maintain their value when this inevitable over-night dollar debasement hits?
Larry, you seem like a good man. You sound level-headed on the videos. Thanks for doing right by us in the big picture here.
Da Kine
Larry,
How does the collapse of the dollar affect personal debt? For example - if I owe $10,000 on a credit card and the dollar is suddenly devalued by half what happens to my debt? Do I still owe $10,000 or does this change?
I believe what is going to happen is much greater than what you are saying publicly, but privately, like me, you are concerned on a bigger scale. Opportunity for the prepared but devastation for the unprepared.
Please stop telling us over and over and again that the dollar is going way down. Tell us instead what to do about it!! Buy GLD, SLV? Jan
OK> OK I’m convinced. what are we going to do about it? Just keep on talking? What are you doing about it with your own personal funds? If they do declare the price of gold to be 2000 an oz. will they confiscate any gold we do hold same as before?
Should we hold ETFs that are leveraged to pay twice what I have invested, raw gold bullion, gold coins or silver coins and bullion.
What if I buy a foreign stock or foreign obligations will the come back to me in Dollars same as they wee bought with. WHAT ARE THE ANSWERS NOT THE QUESTIONS, I KNOW THE QUESTIONS,
THANK YOU
SAM hARRIS
Is there a place, outside the U.S. and the other G-20, (I assume all would be effected in the same way as the U.S.), that might be considered a safe place to stash our own money? It is especially cruicial to those of us who are retired with only enough to get by on, who don’t have unlimited funds and who have no prospect of future employment?
I believe the devaluation is to set the stage for the introduction of the “Amero” the new international currency shared w/ Canada, Mexico and the U.S.
I agree with you but what can we do in austraila with our investment.and is the australian gold price going to be affected as much as the US
Hi Larry,
I understand that increasing the price of gold to $2,000 would help countries service their national debt but why would domestic prices double?
Thanks…..George
My questions are simlar to everyone elses.
With 401k not having much to pick from I moved my money earlier this year when Weiss recomended to move to the Safiest money market Amer Century Cap Pres Fund . Should money in 401 be moved to Global Funds away from US Money Markets. In my case Valic offers two Funds Oppeniheimer Global and American Funds EuroPacific Fund. If we do not have Gold Funds Available what funds do you recomend for 401 Accounts with Employer Or Keep following Weiss Advice and keep it in the Capital Preservation Funds. How would sudden death affect everything else from Housing Market, and Supply/Demand, to bank accounts, and the Auto Industry I was thinking about buying a new car but now I am not sure it is affordable (hoping to wait one more year)
I have heard of holding gold, silver, etc. denominated in other currencies, such as the Swiss franc. How exactly do I change my gold holdings, so that I am holding so many francs, euros or whatever worth of gold, not this many dollars worth of gold. Can you somehow own GLD represented by another currency?
If someone had X amount of dollars in a safe deposit box as I understand it things will get so high that it will not buy as much as it will now. Is that way the way the dollar will deminish? Other words a person needs to have money in land or property of some kind.
To Bloggers—The volume and diversity of the many dozens who submit blogs here shows me that most people have no idea of where we are heading in our economy. Fair enough, I don’t know either. However, when I see the mention above of “…the oil stock FTO..” , it also shows me some folks are not even trying to understand the most fundamental aspects of the stock market. That blogger could have gone to Yahoo finance and in less than 1 minute found out that FTO is a refiner, what its operating margin is, what its EPS and PE is, what a crack spread is, what sour crude is, etc. All of this information is available at the click of the mouse. You HAVE to put some effort into this. This is one reason why mutual funds have done so poorly, people want to just dump their dollars somewhere and return some day to a fortune, confident that some manager somewhere is going to take care of it with the same diligence you would. It doesn’t work that way. They make money through their fees, not by making wise investment choices. Be responsible for your own money and your own education. I wonder if those who are authoring this endless barrage of questions actually expect to get an answer from…anyone! When Ben Bernanke has to seek outside counsel to understand derivatives (and he is a REAL smart guy), it shows me that the complexity of the workings of our economy is probably beyond the grasp of 99.999% of our population. Like electricity, if you don’t understand it, and you play with it, you’re going to get burned. Also, where the hell were all these experts a year ago when we could have actually implemented some of their great ideas to secure a sound economic future? Want to make an instant return on your money? Get rid of all credit card debt ASAP. That’s a 9 to 23 percent return right there. Got a giant new truck or car you are paying on? Get rid of it, it and ALL things with wheels and propellers which require payments, which, with very few exceptions, are depreciating assets. Get rid of CDs, they don’t even keep up with inflation. A friend of mine bought a horse trailer for 15k 3 years ago. After 3 yrs of interest-only payments, it finally was paid off with a home equity loan. Now it is for sale for 10k. It went to 3 horse shows. That works out to $3660 per show, which for her was 6 months of take-home pay. That kind of spending behavior, be it horses , boats, ATVs, or a huge truck so you can commute to work, has to stop, no matter how much you love it. Want to be secure? Get that stuff out of your life. It is the lifestyle of Americans that got us into this mess, as much as the Wall Street greed and the others who are blamed for this mess, including the loan officers at banks, who millions of times over told clients “Yes , we can get you that $300,000 home…”, on a non-documented $20/hr income. The people taking those loans apparently never picked up a calculator and an amortization book. Just those two things are sufficient to determine if you are in over your head or not. All I really know is, the easy days are gone, and that nothing replaces education where your investments are concerned.
Can you please explain, in ordinary English, how “devaluation of the dollar” works? If I have $100 on Friday and the dollar is devalued by 50% over the weekend, what will change for me on Monday? Will I still have $100 that will only buy $50 worth of goods/services, or will I have $50 that buys the same amount of goods/services as on Friday? Or are neither correct? And how would the devaluation effect the bills I owe - would a $100 bill become a $200 bill? Thanks.
My wife and I “own” four pieces of property. On two pieces, the house we live in and one rental we have no equity, they are worth approximately what we owe. We are thinking of selling them and moving into the other rental. But if gold does inflate will the debt to equity ratio of real estate also become more attractive?
Larry, I’ve just not been able to understand how the dollar can be devalued since it and all other currencies are fiat and their values can only be measured in relation one to another. The value is what people believe it to be, correct? If the government all of a sudden decides to set the price of gold at $2,000 an ounce, seems like everything else would pretty much remain the same except for the cost of imports in the event the other currencies kept their price of gold as it is just now. But they could just do the same thing…double the amount of their currency to the price of gold, yes? Sorry I just don’t have the background to understand how all this works. If you could explain it in your upcoming session, I’d love to learn. Many thanks, Karen Walker
hI lARRY, 3 YEARS AGO I POSED THIS QUESTION TO MY SON STUDIEING FINANCE AND ECCONOMICS NO WAY HE SAID, HAVING GONE TO 2 SIMILAR PERIODES 1947 IN GERMANY 47.5 NEW dm FOR ANY AMOUNT OF VALUES CURRENCE YOU HAD TO BRING, AND 1980 IN MEXICO THE RATIO US $ STABLE FOR 50 YEARS AT A RATIO 12,5 TO 1 WENT FROM 1$ TO 9O PESOS IN 30 DAYS TO DAY 10 000 T0 1 THE INFLATION HAS GONE UP EVERY YEAR, YOU WILL BE RIGHT IN YOUR ANANLYSIS THE US $ IS BEEING CUT IN HALF OR LOWER, SOON, SOONER THEN WE THINK.HENCE IT IS ON GOING NOW THE STINKEN ELECTED OFFICALS DONT TELL THE TAXPAYERS UNTIL THEY ARE SHAFTED AGAIN, ALL GOVERMENTS IN POWER OPERATE THIS WAY, QUESTIONS:
HOW WOULD THIS EFFECT THE STABLE COUNTRYS SWITZERLAND, NEW ZEELAND KANADA AND INVESTMENTS IN THEIR MONEY.
hOW WOULD THIS EFFECT GOLD DRIVEN INSTRUMENTS, OR IS BULLION THE BEST ANSWER HIDDEN IN YOUR GARDEN
i REMENMBER IN 1980 MEX GOLDCOINS WHERE THE BEST VALUE BUT NOT PRACTICAL BECAUSE NO ONE COULD CHANGE THEM A TAXI OR THE STORE OR THE TICKET OFFICE,
THEN MEXICO DECLARED THE COINS A NATIONAL TREASURE, AND YOU COULD NOT TAKE THEM OUT OF THE COUNTRY, AIRPORTS CONFISCATED THEM YOU ENDED IN MEXICAN JAIL
yOUR ADVICE MUST CONSIDER TO OPTIMIZE THE RESULT ENDING IN HIGHER VALUE END VALUE OF WHAT YOU HAD BEFOR THE $ COLLAPSED BUT LEAVE THE CONTRY ONE OPTION WHERE TO GO ???? OR SURVIVE IN THE USA ON TOP OF THE HEAP. LOCKING FOREWARD TO YOUR REPLY GUNTER GEIGER
Gold’s out of my reach, right now and will be for some time. What about siver mint coins and other silver products?
Should the US Dollar really collapse (meaning investors or trading partners won’t accept US Dollar for payment) and the USA be pushed into insolvency I sincerely hope that the consequences are clear to everybody! World trade as we know it will also collapse along with a superpower. This will mean major armed conflicts if not outright world war. No diversification no non US Dollar base holding will shield you or be worth much if anything if that comes to be. Pray it won’t happen.
Hi Larry,
Many can take credit for the decline and fall of the once great USA…not the least of which are the elites, our Presidents and Congresses, the media, bankers, brokers, and many others. The Obama administration, ably aided by the Congress, has accelerated the USA’s dying process to the speed of light. The death of the US Dollar is just one of the effects.
Domestically the US Dollar, in whatever form it eventually assumes, will still be easily divisible and will still retain its quality as a medium of exchange…only its quality as a store of value and its use as an international medium of exchange will be burnt toast in the trash bin of history.
It may be time to develop a closer relationship with our God, family, friends, neighbors, community, doctors, fuel oil or heat suppliers, farmers, the sheriff, and others on whom we are dependent as well as those who depend on us.
The best returns and the most long-lasting investments are in the above relationships as well as in our education, health, and freedom. I look forward to your guidance as to what financial plans are better for replacing or regaining the dollar’s lost store of value.
Jim Price
Larry, what is the best thing to do with our wall street stock. I own a few oil mlp s etc. cash is also a concern.
Thanks for your help.
Does one buy gold coins–American Eagles? or Australian coins? Will the Eagle4s be devalued if our dollar is gone? What does one do if one does not have much money? How about homes and mortgages? What do you advise.
Will there be an increase in the value of real property, houses and land, etc.?
Larry,
Last I heard, gold was still in a free world market. I fail to see how the G-20 or any of the other usual suspects (George Soros, etc) could possibly do anything about its price. Our own Federal Reserve is powerless to “set” interest rates, or really “manage” the economy. The world markets for gold are simply dependent on far too many other things–production levels, environmental concerns, demand (for jewelry and other consumables), political difficulties in producing countries, as well as risk aversion.
What can one do to protect one self if all the major economic powers in the world agree to increase the price of gold by 100% relative to their present day exchange rate of their fiat currency for one ounce of gold?
Hi Larry,
I imagine gold is a safe haven if (or when) this happens…What about other currecies like the australian or canadian dollars (the so called commodity currencies) or the euro, the anti dollar currency…
Thanks a lot for your advice in all this mess…
Jacques
Larry,
What If we have dollars invested in gold ETFs, and the G-20 pegs gold at $2,000 per ounce in an attempt to devalue world currencies. Do our digital $US double overnight reflecting the doubling of the underlying investment in gold, or are there any scenarios where our digital dollars would less than double because fund managers have less than full investment, fractional investment, or other structures where investors would enjoy less than full return on their investment?
Thanks,
R Burgi
Larry,
I have many of the same questions of the previous commenters about how to protect myself as a “little guy” living paycheck-to-paycheck. Help!
Larry;
If they do as you suggest and set the price of gold higher to devalue the dollar what does that do to say canadian stock investments and other foreign currency values.
Dear Larry,
I have a chunk of money in a USTreasury Money Market.
Is this still agood idea?
Larry,
When this crisis hits, will gold stocks give me the same protection
as having the hard asset of gold in my posession and if I have the
actual gold in my posession then where should I keep it?
thank you larry, do you see a dip coming for gold? also what is the best way to own gold? and ,, are your answers to every one posted? sincerely , david t
What is the best hedge against the decaying dollar? Please comment on the viability of putting 50% or more of one,s assets into gold. Any value in short term treasuries? What about foreign currencies?
Hi Larry,
Many can take credit for the decline and fall of the once great USA…not the least of which are the elites, our Presidents and Congresses, the media, bankers, brokers, and many others. The Obama administration, ably aided by the Congress, has accelerated the USA’s dying process to the speed of light. The death of the US Dollar is just one of the effects.
Domestically the US Dollar, in whatever form it eventually assumes, will still be easily divisible and will still retain its quality as a medium of exchange…only its quality as a store of value and its use as an international medium of exchange will be burnt toast in the trash bin of history.
It may be time to develop a closer relationship with our God, family, friends, neighbors, community, doctors, fuel oil or heat suppliers, farmers, the sheriff, and others on whom we are dependent as well as those who depend on us.
The best returns and the most long-lasting investments are in the above relationships as well as in our education, health, and freedom. I look forward to your guidance as to what financial plans are better for replacing or regaining the dollar’s lost store of value.
Jim Price
Hi , Larry, We have at least an inkling that our debt is well over 100T. $2000 gold doesn’t seem to touch the debt. is there something I’m not seeing? I am using your $ marker at 55% as a basic marker
for final metals purchases. Are there any added cautionary points I might use? Bob
Would it be wise to convert dollars into Swiss Francs, and if so, what is the best method of doing so, without actually taking possession. Ex. open a swiss bank account, in francs. Is there an ETF or mutual fund to purchase Swiss francs?
Thanks
It would be helpful if you would name a few RELIABLE companies from who physical gold could be purchased & instructions about how to go about receiving physical gold.
If gold is raised to $2000 per oz. (or doubled) suddenly, will silver follow at a faster pace; than say a slow pace like pork bellies and corn? What is your opinion?
It would be great to own gold and silver.
It is not too late to do so.
I am a small farmer. IF gold is what you are supposed to be invested in, what or how is the best way to do this and not be fed to the wolves? Should you invest in gold mining or other gold stocks or should you take the physical gold itself. Should you buy bullion or collector coins? My broker says if you buy the “real thing” you have to have it appraised everytime you want to use it. I am really confused. Can you help me?
Larry,
Are you saying that all currencies, or at least the G-20 currencies, will be devalued relative to gold? Does this just not put all governments back to their current initial positions, or would the nations with the most gold benefit the most? Specifically for us Canadians, what does US dollar devaluation mean to the loonie?
Why gold? Today the gold price is artificially determined (managed or manipulated, take your pick) on the COMEX based on unbacked paper bets or derivatives. What would stop this from continuing? Why do your gold forecasts and recommendations not mention the historically significant COT data, which now has gold and silver short positions at near record values?
Thank you
Hi Larry,
Many can take credit for the coming decline and fall of the once great USA…not the least of which are the elites, our Presidents and Congresses, the media, bankers, brokers, and many others. The current administration, ably aided by the Congress, has accelerated the USA’s dying process. The future death of the US Dollar’s store of value is just one of the effects.
Domestically the US Dollar, in whatever form it eventually assumes, will still be easily divisible and will still retain its quality as a medium of exchange…only its quality as a store of value and its use as an international medium of exchange will be burnt toast in the trash bin of history.
It may be time to develop a closer relationship with family, friends, neighbors, community, doctors, fuel oil or heat suppliers, farmers, the sheriff, and others on whom we are dependent as well as those who depend on us.
The best returns and the most long-lasting investments are in the above relationships as well as in our education, health, and freedom. I look forward to your guidance as to what financial plans are better for replacing or regaining the dollar’s declining store of value.
Jim Price
Dear Larry:
I am seeing a real buy up of US gold in recent advertisings across America. I have also heard that China has found a fairly large gold vein in the north, and have heard that gold will become the highest ranking commodity on the market. It will not be the the value of a dated/minted us gold coin, but the purity and weight of the gold.
Perhaps I am just hearing things but recently gold went up to over a thousand per oz. Since I am a late bloomer, should I invest my money currently invested in my 401(k) into gold ingots? I was told that they are good for bartering should that become necessary???
If we are vested in small quantities of mining stocks, three or more, but do not own gold(solid)and these companies are outside the USA, will we be better off? Would it help if we owned Brazil or China Gold ?
How would trading in commodities do? They are set go up sharply. J. Smith
I have been purchasing domestic and foreign commodities for sometime now but
the stocks are purchased on the new york or nasdaq exchanges. How does this
affect the value of foreign commodities purchased this way and should I do
something different. I am a small investor. Thanks
For people like me with savings in an account for government employees like ICMA, there are few fund choices beyond regular stock, bond and international stock funds. What should we do if we have to leave the money in such an account?
What should a person own or do to protect themselves?
What type gold, what type coin, should I purchase that I could easily use to buy necessities if the dollar plunges?
Would I go to the grocery store and buy food with gold?
As an Australian investor I am interested to know what “sudden death” for the US$ mean for commodity dollars like the AUD. I’m thinking that any devaluation of the US$ will see an appreciation of the AU$, which will have the effect of increasing returns from US$ demoninated investments.
Are you stating that the only way to protect yourself is to buy gold?
How will this effect bonds or 401 K’s?
Would not this bring about depression in the American economy?
Would not this destroy America as a World Leader?
Would this place more power in the hands of China and Europe?
Could this cause Starvation in the United States?
Could this create a new mortage crisis?
Could this cause a revolution in America?
Are churchs more accepting that the dollar will be devalued than the general public?
Are the elite leaving America in anticipation of the fall of the dollar?
What would this do to the Dow, Nasdaq, the S&P, long-term and shortterm bonds, commodity pricing/trades, Wall street, World markets, What ever is left of the National treasure (if anything), would banks take a holiday, would businesses nationwide in U.S. fail, the entertainment industry, education, etc.?
This is not just slight of hand information - if what you state is true. God help America — the Border issue and the wars will be minute in comparison or will they? Questions, Questions, Questions (not an investor, but still concerned)
DUE TO RECENT FLUCUATIONS IN ALL INVESTMENT VEHICLES,MANY HAVE TURNED ASSETS INTO CASH/CHECKING ACCTS WHERE POSSIBLE.
WHAT DOES ONE DO WITH 25,000.usd???? WITHOUT LOSING IT
AS HAS HAPPENED WITH STOCKS HELD.??/
What about the US Tax code? If one makes $12,000 a year, and gold price is doubled, one now makes $24,000 a year. Now one is in a higher tax bracket but with the same expense ratio, with all goods also doubling in price. They now have to pay taxes. Tax code is set by law. Does this probably mean it could happen at the beginning of a given year? This is a big negative for the poor.
Any advice would be appreciated. The average American doesn’t have a clue what is going on.
How does revaluing currencies worldwide impact on monies held in bank deposits?
It would be nice if you gave advice on specific investments that would protect you from this devaluation.Also what is your opinion on stocks of companies that mine commodities such as copper, gold and silver which I presently own?
Thanks,
Dave
What should people, who can’t afford to buy gold, invest in? Silver? What about people who are on fixed incomes and have no extra money to spend? Do they stock up on necessities, such as food, water, medications, etc.?
Dear Larry: Just like most people I need your advice on when to buy and when to sell. Thank you Louis Shapiro
Question…. If there are concerns in the dollar collapsing more why are we currently holding UUP. Isn’t this bullish on the dollar?
Larry-
Thanks for the opportunity to write. I’ve subscribed to SafeMoney for over 5 years now. I still have 4 gold bullion coins . I bought the coins back when gold was about $286 US dollars per ounce-thanks to you. What I need to know is, what do I do with my retirement accounts? I have some in gold stock, bought again, near the bottom, thanks again to you. I have some in P&G stock, which I know Weiss doesn’t like, but darn, I just about hit the bottom when I bought it. I KNEW it - I’d been following it for over a year. I jumped out of bed one morning and I just knew it was time to buy. It’s gone no where but up since then, in a jagged motion.
It seems that P&G stock has an inverse relationship to the dollar - as the dollar weakens, it does better and better. Is it true or possible that some international stocks would do this?
I’ve been eyeing some China stocks to perhaps buy them on the next dip. It doesn’t seem likely the dips are going to be such a good deal as the dollar keeps getting pounded. True?
I guess I need to understand some fundamentals in international finance before I wade too deeply into this. I don’t want to do fancy options with my retirement money, but I’m tired of the feeling that the part of it that is parked in US dollars, which is the majority of it, is just eroding.
All my money is tied up in a variable annuity until 2016. Heavy penalty for early withdraw. What can a 60 year old do?
Larry, Thanks for all the great work you do.
I agree that something is obviously brewing, but I’m not sure what.
One problem I see is that if gold were revalued, then Our Government may be even in worse shape, since they don’t seem interested in accumulating gold. Also I wonder what good it would
do them if the citizenry owned the gold, It seems the various governments would have to confiscate and thus own all of it.
I would really appreciate your thoughts, or anyone else’s.
My question concerns indexed annuities. I assume you are familiar with the pros and cons?
Given your strong statements about the planned crash of the $ at the G20 Conference but you’re nor sure of when it will actaully be implemented, what do you think I should do? Others here may have a similar questions.
About half of my retirement funds are “tied up” right now in an Indexed Annuity policy bought from Allianz Life. I have already in 2009 taken out the max I can without a 30% penalty. I placed most of that money into the investments that you and other’s in the Weiss Group suggested. I have protected that money very well and sen about 10% growth at the same time. God bless you’ll
I can’t take out the next max until the end of March, 2010 without that penalty. My contract is up in 2012. That is the quandary I’m facing.
In your opinion, would it (1) be smart to absorb that penalty and get the money invested in safe assets right now,
(2) wait until I see your prediction about to unfold, OR
(3) eat the devaluation of the corpus by NOT paying the penalty and witing to retrive my money in 2012?
I hope that gives you a real challenge? (grin) I’m sure stewing over the decision that is best.
I have “all” my retirement money in a IRA account with about 1/3 in stocks and bonds, all the remaining is sitting in a cash account. I’ve lost about 30% from past down turns. I am retirement age and have not had to draw on it yet. I am very worried as to how to make it grow and invest in something somewhat safe without loosing to inflation. Advice is needed. Thank you
the price of commodities will shoot up but the demand for commodities will probably drop if we go deeper into depression. What to do?
LARRY,
I RECOMMEND YOUR TEAM OF YOU,TONY,MARTIN,ETC. OF THE WEISS
FOUNDATION HAVING AN ONLINE VIDEO WITH RECOMMENDATIONS WHAT TO DO,
OR POSTING THE ADVICE ON UNCOMMON WISDOM OR MONEY AND MARKETS
NEWSLETTERS.I TOOK THE ADVICE OF TONY ABOUT BUYING LONG ON CHINA
SO FAR.I INVESTED MY MONEY ON A GOLD AND OIL STOCK I AM CONFIDENT IN.
THEY ARE IN THEIR EARLY STAGES WITH PLENTY OF ROOM TO RUN.THE FIRST
2 SUGGESTIONS WOULD PROBABLY BE AGREED WITH BY MOST OF YOUR
SUBSCRIBERS AND READERS.
SINCERELY,
JOHN
What is your recommendation and plan that we should follow?
What is the best way to convert dollars into gold in addition to GLD shares which was recommended
earlier?
Where do I put my savings???????????????????
19 Sep 2009
Larry,
Thank you for the information you are providing your readers. We sense such an urgency in your comments and you appear truly sincere about the need to be vigilant. Our concern is that given what may happen to the dollar, most of our savings now held in money market accounts, CDs and super savings plus accounts could quickly be cut in half in vaue if the dollar is devalued as you predict. We have already bought some 10 oz of gold in the past several months. Should we immediately be purchasing more gold at this time, or wait for one more dip in gold prices, if in fact there will be another dip? And as Gordon Liddy advertises on TV, should we always purchase gold bullion or gold coins, or a mixture of that and gold stocks? It would seem that the safest would be to hold the gold bullion or coins assuming you can protect them adequately. Your thoughts and advice would be most appreciated. Again, thank you for your keeping us informed.
Larry
Please keep me posted on the sudden death of the dollar report. From my viewpoint the dollar is on life support now and any infromation would be helpful to protect my investment.
Jim
coming from someone who barely understands or knows what to do with the little amount of capital (a couple thousand dollars), what are the steps i need to take to insure that my money is safe and grows? please put what you say in layman’s terms with step by easy step instructions that are as easy to follow as a connect-the-dots puzzle.
Perhaps buying gold now will insure some type of stability for our future?
Larry: Been reading the Weiss reports for years now. Please tell us Government (Civil Service) workers how to cautiously select the few bad options we have for our TSP funds. Generally we are recommended the “G” fund which is basically Treasuries. Since Aug. 10th I have gone into the “F” fund which is short term (5 year) corporate, Agency backed and Government bonds which is paying about 7%, roughly double the “G” fund. According to Weiss, it would seem that when people freak out and sell bonds (or stocks) it drives the price of bonds down which in this case should increase the yield these bonds should pay? It would seem intuitive that the Government would buy the paper of Agency backed and probably most corporate backed debt if the crap hits the fan AGAIN (likely). But then again maybe we have hit “critical mass” and the system cannot handle any more sweetheart bailouts? Obviously, the rest of my portfolio is solidly in the hard money camp. Thanks.
You say all the G-20 would have to do is set the price of gold at $2000 an ounce and the price of food would double. Why would that happen? You could set the price of houses at twice their present value, but that wouldn’t affect the price of bread. I don’t understand this warning, given by others too. I thought the price of gold was in response to the dollar’s demise… not the cause of it. This just doesn’t make sense.
SHOULD I WAIT TO INVEST IN GOLD AND WHAT ETF WOULD BE BEST?
I have several thousand dollars invested in annuities and even more invested in life insurance. I am 60 years old and disabled, so my policy premiums are being paid thru waiver of premium benefits. My husband thinks that I should cash these in and buy gold with the money. Would I be wise to do this or leverage the policies and buy silver? Also, how safe is my investment with Prudential Insurance company? IHelen
I owe 1/2M, 30 yr. fixed @6 1/4 % for a grain farm purchase in 2007. After p & i plus RE taxes my net from cash rent is $6,000. I have Amer. Cent. MM acount, small brokerage account plus social security. How does all this convert? Will I be able to save the farm for my grandchildren who will farm it in a few years? Thank you for your continued sharing of knowledge. gg
Would it be wise to convert my IRA to gold? How is it done?
It seems to me that such a sharp decline in the US Dollar related to re-valued gold, would be problematic for owning stocks in general, since they are really intangible assets. Currently the vast majority of my monetary assets are in precious metals mining and ETFs, but I wonder how long after a spiral starts is it safe to continue to hold such etherical currency. Also, gold at such high exchange rates seems to indicate that common street trading would lean more towards the silver market.
Could you please graphically explain just how raising the price of gold would make the country’s debt more manageabal. The same question with letting the dollar fall. If we still owe X dollars, isn’t saying we’ll pay off the debt with cheaper dollars just symnatics? It will still take the same X dollars and if you don’t have them you just don’t have them. Thank you. Bob Rozen
I don’t get it. How can doubling the asking price of gold affect fiat currencies at all? Unless they all go back to the gold standard, but is there enough gold in existence to even do that? (OK, that is why the price of gold has to go up, perhaps, to make it able to absorb all the dollars and Euros). If that is the plan I feel sure the government would outlaw citizens owning investment gold and silver and buy it from them with the newly inflated money or simple confiscate it at a fixed low rate so buying gold would be no protection.
I have seen this played out for real on a smaller scale. The US Military issues “military script” in war zones and pays in that instead of dollars. Once in a while they lock the gates and issue newly printed script of a different color without warning. I saw hundreds of thousands of dollars in old script float down the river the next morning, thrown there by locals who accepted it for services and goods in good faith and got caught by the swap. That is how fast you can lose everything you worked for. The real currency after the Korean war was gold rings strung on a neck chain, and we all used it in preference to military script or Korean Won for major purchases.
Hi Larry:
I have been reading your comments all week about the devaluation of the dollar and believing (to myself) that I was understanding all that you were saying. I am in
agreement with you that the dollar will be devalued against other currencies and some inflation will hurt us for a period of time. I also see more vacationing within our borders
which will help our economy. Tourism will increase from the countries with higher value currencies which will help the dollar.
But now you throw me a curve with this article about governments declaring a much larger value on gold. This I don’t understand? By placing a nominal value by world leaders on the price of gold, where does that leave the currencies, by their values, as they exist today. I guess I’m not getting how the price of gold will affect the US$ and by extention, the other currencies as they relate to the US$!
Maybe you can give me a lesson on this methodology?
Thanks,
Jerry
What will happen to present costs of goods and services? Will rents go down in proportion to the loss of value of the dollar? Will people be able to buy food at lower prices, because their money is now not worth anything?
What will happen to retirement funds–will we receive proportionately less than what was agreed upon?
Why can’t we just not repay and not service all those loans that Obama made for the country? If they were ignored, wouldn’t the value of the dollar stay at its present value?
How would this play out for the AUD?
If the cost of living just doubles, no one could afford to pay their mortgage. Then just about everyone else who isn’t in foreclosure will be. Then I believe you would start to see civil unrest, riots and the like. Why would the G-20 want to see the world go crazy? This doesn’t make sense to me. But since I don’t own anything, I can’t lose anything. Everything I have is on loan from the man upstairs. He owns everything. And I know He won’t let me starve. I saw another blogger ask about the amerodollar. Is it true that it is printed already and stored in vaults somewhere? I heard that in Canada that the amerodollar is discussed on their news. Anybody out in Canada - can you verify?
Since gold and Fiat currency normally have an inverse relationship in long-run nominal terms. Why wouldn’t we still be losing value in dollar-denominated investments like GLD, stocks, commodities and gold mining stocks?
What’s to keep the government from confiscating or heavily taxing our precious metals while crashing gold & silver mine stocks? What’s the possibility of that happening?
With it rumored that the Fed Families own as much as 75% of the world’s gold while at the same time manipulating the price through their control of the London Gold Exchange and control of central banks, what’s to keep them from sticking it to us by flooding the market at the time the world currencies are imploded?
I know very little about bonds, and you’ve advised against any long-term payout bonds because of the high probability of runaway inflation. Does that include Municipal Bonds for something like a new airport terminal in a major city? I’m guessing ‘YES.’
Please include your est idea for safe conservative investments if possible. Do I need to change currencies? Julie
Please advise how the “little guy” can financially protect his wealth.
Can you explain what a TROY ounce of Gold is?
What kind and how much of gold should a senior in the 80’s invest to save her savings for next 10 years?
Please comment on the security of the GLD and SLV etf’s. We would rather hold physical metal but are bound by a 401K until my wife is 59.5 yrs. (2.5 yrs. from now). We don’t trust Wall St. and realize that is who is managing these etf’s. SLV is massively shorted right now and is evidently holding about 10% less silver than is necessary to back all the shares fully. Could this be a problem?
Thanks and keep up the good work.
Mikal Baker
I am primarily in cash and I don’t want to take physical posession of gold. I can’t seem to find a financial asvisor that pays attention to the critical situation we are facing with the dollar. I need guidance on what to do immediately. Your thoughts and direction would be greatlyt appreciated.
Larry, the outcome for fiat money and particularly for that of the U.S. seems to be as catastrophic as that of 1923 Germany. It is calamitous that in saving our economy from total implosion we have managed to bring ourselves to this imminent abyss. Do you envision that gold will be the only salvation as a currency and that holding 3/4 of one’s position in an ETF such as GLD, with the other 1/4 in bullion, plus commodity positions will be the best solution in attempting to salvage one’s portfolio? What about strong companies with positive balance sheets and dividends?
Thanks for your response. Gabrielle
AS A RETIRED 79- YEARS-OLD, HAVING NO PENSION BUT SOCIAL SECURITY PLUS MARKET INVESTMENTS, WHAT PERCENTAGE OF, SAY, 150,000 PORTFOLIO SHOULD BE IN GOLD AND/OR SILVER?
Thank You for your help. If the dollar is heading out, where would you recommend I do my trading? I currently have an account with Fidelity.(stocks and currency options)
If the governments debt is cut in half by devaluing the dollar…won’t our personal debts…ie school, car loans and mortgages that are already locked in place be cut in half as well? Please explain why or why not.
It seems that your readers have raised some very good questions. Your answer to them now would be helpful to us in choosing the wright path.
Thanks
Emanuel
I have been wondering why the run-up in gold prices not another tuip mania, they are both pretty and almost useless. If a new currency might be indexed to tulips, we should all be buying tulips. But if you are saying that a new world currency will be ‘indexed’ to gold, then I have my answer. Is this ‘indexing’ the reason gold has value?
Would this indexing create a ‘gold standard’ for a world currency, similar to the gold standard we had until (1971, Nixon) If they link the value of the currency to gold, will it prevent world governments from printing world currency willy nilly?
Heavily committed to Sterling with smaller holdings in the US Dollar. What would be the best “Gold” European ETF’s and or USA ETF’s accessable with Sterling, i,e without buying local currencies?
Hi Larry,
thanks for your excellent information.
My question: Do you think it is possible to analyse the current situation as a variant of the prisoner dilemma, only instead of 2 parties multiple parties. If everybody keeps silent (keeps the Dollar holdings), it is best for everybody. But as soon as one concludes that it is inevitable that another one will start to talk (dump his dollar holdings aggresively), it is in his best interest to be the first to act?
And my second question: I saw already efforts by governments to put hurdles in front of commofity investments, leading Deutsche Bank to abondon its Oil ETNs. Do you think governments coult try to ban commodity ETFs outright in order to force the money to stay in governments’ paper currencies?
if the money that supports the majority of monitary transactions Devalues That may drive up cost of foreign goods of non G20 countries but these points have me confused. it would favor G-20 goods and even more favor domestic products. Gold and valued mettals act as a hedge against inflation. massively increasing spot gold prices would favor those with the hightest gold reserves and decrease the favor of getting any foreign investment from any of the g-20 but I don’t see the massive effect on domestic prices. It would make it cheaper to ay off debt owed to the US for the non g-20 that can afford the transactions. It would decrease the balance of trade and for the time being reduce American foreign investment for all countries that are not tied to the American dollar it would hurt those tied but not destroy them as long as they were not totally dependent on imported goods from unaffected countries. That would place Japan in a very bad place. But would not effect our position as trading partners. I am sorry but I just don’t see 100% inflationary figures in this move. Could you show me how that is possible?
Hi Larry,
I live in Australia,how will the demise of the $US affect my Australian Realestate Values and my
A$ savings.The A$ should rise strongly,,,,,,Right ?????.How do i best profit from this event ????
Best wishes,Walter
20 sEPT. 2009
MR. EDELSON,
Thenks for your advice. I heve read the post that you has written about the dollar, which describel the fall of the dollar and opgrading of the gold for 2.000,00 or more.
I am a small investor and peel fresh not like my hard earned geld. i have your opinion and that of Sean, miners bought shares, what does this effect ne, by the fall of the dollar share my halved or doubled the increase in gold. I assume the latter.
If physical gold is a better option, or share in DIA.
Is it possible for miners shares in another currensy to bay, or is this not safe.Welcome your vieuws on these.
I would also like to ask you whether it is possible to vidio messages written to get my hearing is very bad and most of this text, I can not understand
P.S. When the dollar depreciated, will undoubtedly have consequences for the DOW and the S-P.
You do me a good tip how to respond to it.
Your posts with intrerest seeing , I verblijf.
Best wensen. J.K.Kleijweg Nederland.
Larry
I’m retired with 90% of my assets in stocks,muni bonds,cd’s,savings accounts,and cash.
Should I buy gold ETF’S,sell dollars and buy another currency or some other investment
to protect against a falling dollar?
Lou
Larry: Do you really believe that Obama is this economically illiterate and politically insensitive. Doubling the price of everything would almost certainly guarantee that he would be out of office. I suspect that there would be riots-very much in keeping with the predictions of a Kontradieff winter. Yes anything can happen, a stupidity coming from Washington is the norm–but this drastic an action. Let me give you a idea of how the dollar might not crash —at least for now.
The dollar has become in part the victim of the ‘carry trade’ discussed by your colleagues in other missives. Let’s just suppose those trades who are big on the carry trade who go burned in ‘08 decide it is time to unwind because the foreign government voice concern over the dollar may force interest rates up. So they decided it is time to book profits and wait for the next opportunity. This would take pressure off the dollar and probably cause stocks to fall. Bernanke can only play the agency for treasuries game with other central bankers for so long.
Just a thought from a hedge fund researher. Keep up you great work-Everyone should pay close attention to your analysis
1. In “Sow thunder” Sean wrote: “This game could end very badly. When it does, I think you’ll want to own physical gold and silver.” Is he saying the gold and silver we hold in our IRAs and other plans should be in physical metals rather than ETFs or is he referring only to the money we hold outside our plans?
2. Martin advises us to keep our money in T-bills, which seems contrary to everything else we’re hearing. Why not keep unused investing funds in something like MERKX instead?
3. Like Dev, I want you ” to lay out in clear terms EXACTLY how we need to be positioned over the next 6-12 months to deal with the calamity that is coming. I would like to hear specific recommendations and percentages on how we should be invested. For example, how much of our investments should be in physical bullion, precious metal ETF’s, natural resource stocks, foreign currencies, foreign/emerging markets, etc.?”
From the bottom of my heart I thank you for all you do!
Dear Larry,
Please, don’t forget to advise your customers in Euro-countries.
Thanks,
Bob
I am a small investor (less than 60,000) mostly in money market funds. I am also 62 years old and need this money to survive, because I work only part time. What do I buy to keep this money from vanishing. The only other thing I have is a house that is paid for. I have an online trading account with about 30,000 in it, and IRA money in MM funds (30,000) in my bank..
So what gives Larry? is there a perverberial magic pill or do you know something we Don’t. We all seem like sheep wondering around in the wilderness waiting for the last shoe to drop. I give. Whats your solution?
Should I buy gold now - what price is too high?
Hi Larry,,
The National Investor wrote about the manipulation of gold prices in 1999(I think).. My take away was ….as the price of gold climbed, and threatened to draw money way from stocks and bonds…which threated a fragile recovery…central banks in several countries (US did not participate) ageed to sell gold from their reserves, which crushed the price of gold. Could you discuss this episode and discuss current possibility?
Ruth
CALL ME STUPID, HOWEVER, NOT BEING AN ECONOMIST, PLEASE EXPLAIN HOW DOUBLING THE PRICE OFF GOLD CUTS THE VALUE OF THE DOLLAR BY HALF?
THANK YOU,
DIH
As a member of your TFA service, I just have to ask you this;
Why with all the bells/ whistles that Richard and you have from the Foundation, that there was not a trade made on the falling USD ?
It just seems to me that our “UUP” trade will not profit as much as would a trade on the downside has done so far.
The TFA service is very good at finding trades that MOVE VERY LITTLE on the down side, yet it seems to get into a positon abit late. The “SLV” was a very good one. Yes I know this is a choppy market and I feel TFA is waiting for the next “shit to hit the fan” trade, yet I wonder sometimes why not “UNG” when it was at $ 9 per.
I am saying all of this because I fear that IF TOO MANY people leave TFA service that Weiss+Co. will fold-up the sevice.
You guys are doing REAL GOOD in my eyes. Take care, ED N.
What is your advice?
Just checking !!
Larry, With the dollar sinking fast and maybe becoming worth half its value “overnight” like you say, what should I do with my cash? I do need some for daily expenses. What percentage should I keep in precious metals and gold/silver mining stocks? Thank You.
What do you think will happen to the Australian dollar?
In the good old days $1AU was worth $1.30US
now its the other way round
It is too late to buy gold at this levels?
If not which is the best way to buy and hold?
GLD or Gold mine shares?
Thank you for your answer.
With the dollar falling is the place to “secure” your “money” still in short term treasury bills? We are old folks and don’t “invest” in and out of the market. Not that knowledgeable with these computer things, etc. Right now the little wealth we have is 94% treasury bills and 6% gold/silver. Of course we don’t get any income from those and with social security and medicare going down maybe we’ll have to “rob a bank”(only kidding) so we can be put in jail and get a room and three meals a day and all the health care we need, maybe even a law degree? (ha ha). Thanks to Martin, you Larry, and all the Safe Money staff for keeping us from losing what little we had. God bless you!!
Dear Larry,
I am a member of TFA and the Real Wealth Report.
I feel “locked in” to a flexible premium annuity (FPA) since my death benefit (till age 90) is currently $295,236 and growing daily at an APR of 5%, while my fixed 3% APR account value is only $175,794 due to some poor timing decisions on my part. I had been invested in two of the best funds available to me in with my FPA, but was scared out by predictions of a returning bear market, the imminent collapse of emerging market funds, and dire forecasts such as “the whole Chinese economy is a bubble waiting to burst”, and “China will be a bigger bubble than Japan”.
The funds I exited are Pioneer Emerging Markets fund (PEMFX), and Pioneer Strategic Income fund (PSRAX). These funds have realized year to date returns of 62.53% and 25.81% respectively, and 12 month returns of 10.65% and 11.27% respectively.
My question to you is should I wait for a major market correction, or switch my portfolio back to these funds?
Thanks for your help with this.
Dick
Dear Larry,
Whether it’s a new Bretton Woods or something more like Porter Stanberry’s sense of the no-so-gradual collapse of the United States, what can we do? Not much, I’d say, except buy gold and hope that these guys don’t decide to re-value all currencies in one coordiinated swoop but leave gold to fly for itself re Argentina 2000 or Germany 1933. How do we protect ourselves from that? Not everyone has a 40-ft boat ready in Florida to excape to the Bahamas, and even if we did, what good would it do unless we had the boat hull lined with gold. I don’t even know what to ask, really.
I’d like to be in on your conference call.
Best regards,
Jacqueline Holz
Dear Larry,
Weiss and you talk to the people in the US who are still into the USD and USD investments. What about us in the foreign banks and foreign currencies and gold and gold shares. What is our future going to be? regards, Clueless in MD.
Larry,
Thank you for your insight and foresight. I too would like you and the team to lay out in clear terms exactly how we need to be positioned over the next 6-12 months with specific recommendations and percentages on how we should be invested. Plus, inform us on how we can buy foriegn currency such as Swiss francs.
Deborah
Larry, you and Weiss speak to the people in the US who have investments in the USD and US markets.
What about us in foreign banks and foreign currencies and gold and gold shares. What does our future have in store?
Clueless in MD
What is the best way to purchase gold?
Give us an inexpensive way to buy American Eagle Silver coins. If the spot price of silver is approximately $17 per ounce, why should we have to pay almost $27 per ounce to buy the coins?
Larry, of all the people I follow you are my favorite.
My question…I love to buy investments. I have a hard time selling. Most of the advice I read is on what to buy.
How should I make good decisions on when it is time to sell.
When I have used stops I have wound up being stopped out of things I really want to own.
Ralph Palmen
I am a UK resident and most of my investments are in UK assets.
How am i affected and what should i do.
The £ sterling is already shot.
Hi there,
I would like to know the safest way of maintaining the money that we have in the bank. Thanks.
Ben
Hi Larry and thank you very much for all the information again and again!
1.I fall the governments all over the world are so much in debth, who do they owe it to, eachother?
2.All newsletter writers of recidency in any country, like the ones publishing free ones on Kitco f.i. require always payment in U.S dollars for thei subscriptions.
3.Do you know of any authority, that can set the gold price to $2000. an oz? The market, market by itself?
4.So far the gold price seems to have trouble getting to $1035, which has been proclaimed the ‘new floor’
5 I own shares in several prescious metel , both exploring and producing, so sppresing the value of the ‘greenback’ not make any sence to me, that is what seems to be happening?
6. It is incoprehencible to me what would happen to the whole bankingsystem, if suddenly the U.S $ should be out and worthless, and what would happen to oil, gas and gold as well as all the other commodities does anybody in this world have a solution, instead of forever complaning?
With all due respect and thankyou for a reply, sincerely H. Hodal.
Your real wealth report is then in contradiction. I believe nobody knows the timeline but dont you think this reverting back to gold system would drive hoarding of gold, corruption, public unrest and ultimately war?
Larry,
For those who have a mortgage on a house with say a 30 year fixed, assuming the dollar takes a fifty percent hit, will the banks still accept deflated dollars to service the debt? If so, then it would be prudent not to pay off any liabilities with small interest rates and wait to pay them off at a later date. This of course is assuming that the necessary cash is on hand.
Tony Garcin
How do I exchange my equities for gold within my IRA? Should I buy actual gold coins/bars, etc. or just buy stocks in GLD? I really don’t know the commission rates or fees associated with buying gold or any other metals. I would really appreciate your advice.
Larry, I hear what you say re: the demise of the Dollar —- But how stands our “Short ( 6 mo. or less) “T-Bills”, Are they as secure as: Gold, World Commidity Stocks,(Mainly China) and other recommendations you have been mentioning. I’m getting the impression that our playing field is changing —– Are my suspicions right?
Please advise, need your help.
Anthony M.
It’s pretty obvious which way gold will ultimately go, UP! What are your thoughts on silver? I remember back in the 70’s or maybe the 80’s when it went up to about $40 per ounce. Do you see that happening again?
IDEAR MR. LARRY, IF THE US GOVERNMENT DEVALUE THE US DOLLAR, SAY BY ONE-HALF OR MORE AND GOLD IS NOW THE ACCEPTED VAULE. HOW CAN WE AS AMERICANS FEEL ANY SAFER WITH GOLD SKYROCKING OUT OF CONTROL LIKE THE DOLLAR; UNTIL ITS REACHES AN EQUILLIBRIUM OR STABILIZES. AND HOPE SAFE CAN WE BE WIL GOLD IN OUR HOMES AND ELSWHERE WHEN WE DONT KNOW WHO TO TRUST
DEAR MR. LARRY, IF WHAY YOU SAY COME TO TRUE. WHO CAQN WE TRUST WITH OUR FUND AND SAVINGS FOR OUR FUTURE AND FAMILY FUTURE.
I agree with Utz - Walmart is not going to give you change for a Gold Eagle. And you can’t chisel a gold bar without ruining the weight stamping (and making yourself a target). If you’ve got a lot of wealth, then hold real bullion gold securely in a foreign vault until the new world monetary order falls into place. For most of us, the most important thing you can do is keep a significant portion of your assets safe and close in what has been everyday cash for over 5000 years - silver. Don’t forget the US and many countries like Canada and Mexico were also on a Silver Standard until 1965 for coinage, but no legislation was ever passed to confiscate it. As an average guy, I have 25% of my investments in Precious Metals Mutual Funds denominated in $CDN and Euros, 25% in bonds and foreign “too big to fail” bank dividend bearing stocks (dividends by nature have some inflation indexing built in), but 50% of my liquidity is stashed in small silver coin, both pure like Silver Eagles, Maple Leafs and 1oz. generic rounds/bars, but also “junk” silver - the “$1.25 silver” - highly recognizable 90% US and 80% Canadian dimes, quarters, half and whole dollars, bought and stored in $1,000.00 Face Value bags and currently worth about 12 times face value in today’s dollar. While it’s heavy (56lbs per bag), it still adds up to real money, follows gold up and down, and is easily recognizeable by most everyone as a precious metal, and can represent a lot of small, necessary transactions if things get really bad. When the dollar dies, there are going to be a lot of suddenly destitute people that have to barter (or steal) to survive and these coins will skyrocket in buying power. A handful of silver dimes doesn’t make you a target, but it can feed your family for a week, and when the new currency takes effect, it can be cashed in small increments back in at the going rate of whatever it is. Even though silver (and gold) has gone up recently while the dollar is slowly dying, it’s still well below half of it’s high in the 70’s and is very undervalued and yet it’s a very small market - much coin has been melted during industrial shortages. In the Fall of 2008, the crash caused a rush that cleaned out the coin dealers shelves and pushed premiums way up - once it becomes obvious you won’t be able to get it. Collector or rare coins are like art - a target for theft or confiscation.
Since silver is also a industrial metal, it’s likelyhood of confiscation is rare. I also like the really small gold coin denomination like the 1/10 oz and 1/25oz Gold Eagles, Maples and Kurgerands - essentially minted “flakes or nuggets” . Jewelry can also be a great fungible asset that you can wear. Many of you may have seen old small Mexican silver coins that were hole punched and turned into bracelets and anklets for travel, or gold coins made into rings. Just don’t show or carry too much of anything at one time. It’s amazing how easy it is to hide a lot of silver or small gold around your property - and don’t use a bank deposit box as they will be raided by the government during the bank “holidays” that will be declared to stop bank runs during the currency changeover that’s coming. It takes some work and it’s a bit of a pain, but these metals are real money (it’s the only investment that is not someonelse’s liability at the same time) and most importantly, it’s not dollars. It’s also not recorded by anyone if you buy with cash under $10K at a time. If I need currency to buy something, I just drive to my favorite coin dealer instead of the bank. Good Luck!
I do not understand how doubling the price of everything in every currency will accomplish anything. I always thought the key to global value in any particular currency was the relationship of currencies one to another. I readily admit that the G-20 could easily double the price of gold simply by buying large quantities of it. But I cannot see how this would affect the price of beef, corn, copper or even treasury bonds. Or, I can understand that the G-20 could cause a massive devaluation of the dollar by simply selling dollars. And I can see that if the price of gold doubles in dollars yet remains stable in all other currencies the effect would be devastating for those of us whose store of value is in dollars. But this only affects US currency. How does it help these other members of the G-20 who are drowning in debt? The only way any of this makes sense is if the debt of, for instance, the United Kingdom can be repaid in deflated US dollars, and I do not believe that is the case. I am totally confused.
There are those of us out here that only a little left from the most recent wipe out of our funds. Can you help us survive by explaining the in the most baisc of terms and instructions how keep what we have and profit from the coming events?
Youe news letter actually seems, unlike lots of others, that you are straight up and want the product you sell to actually be of real benefit to your customers.
I am 75, with three stock accounts totaling about $250,000. About 50% are allocated to stocks reccommended by all Weiss connected newsletters, 50% in cash. If I invested remaining cash in GLD 25%, and 25% in gold mining shares (during dips), and if currencies are tied to gold say at $2000 per ounce, how would that effect my china stocks, gold mines, and GLD? Would they just be adjusted to the new gold standard, or would there be some mitigating restrictions put on stock holders? I have no physical gold or silver.
Regards, George Bivins
Larry.
Help…I don’t get it.
If the G 20 arbitrarily decide that Gold is $2000/oz (i.e. they will all pay that for gold), how does that change anything in terms of the relative value of the dollar vs other currencies (which I assume you are thinking would also pay twice as much for gold)? How does anything change in terms of the purchasing power of the dollar (other than for gold) ? Thanks for the help! Jim
*****************************
larry,
in your opinion, what would happen with metals in these 4 scenarios:
1. deflation
2. stagflation
3. inflation
4. hyperflation
************************
What will be the impact on my social security, military and disability pension, swiss annuity and small ira’s for myself and my wife? At present the payments from these sources barely cover my retirement community fees and other living expenses, such as auto and transportation expense, household goods insurance, food and medicines costs. Both my wife and I will soon be 80 years old. My only flexibility now is in being able to make some changes in the asset-type of inverstments. We need the income. So perhaps the changes of investments will have to protect against inflation but continue to generate income.Any ideas?
Thank you very much.//Noe Rodriguez
With so much money and gold reportedly held in gold funds and ETFs,—what will stop the USA and world governments from ruling that ALL gold must be turned in to the banks the way they did in 1933 ?
Please remember the majority of people promoting precious metals are in the business of promoting precious metals.There appears to be an attitude bordering on hysteria regarding gold & silver.Ask yourself,”if I have all the gold and you have all the food,which is worth more?”In other words if you have your assets tied up in precious metals,what are you going to do with them?Sit back & think about this a bit.All the best.
How about buying some 2010 gold calls or leaps in gold if they are available?
Will Real Wealth provide investment choices that will help subscribers avoid the falling value of the U S dollar?
What percentage of my liquid net worth should be invested in gold?
What per cent of my portfolio should be in gold? Should I have money in stocks or bonds?
Martin Weiss has said to sit on cash, but you indicate the dollar may be halved. So what do you suggest now?
Would investing in farm real state and having it debt free be a good investment if the dallar is devalued?
How do I buy gold? Buy a mutual fund? Buy gold coins? Buy gold etf’s?
How much of my portfolio should I put in gold.
Example: using a $500,000 portfolio, what percentage should be in the above investments?
THANK YOU Bob Heckert
Larry,
Question=What would you do with 95% in cash, 1/2 milllion, to
hedge collapse,devaluation or continued decline of the Dollar?
Age 76.Just subscribed to Real Wealth Report.
Thank You
Tom
Larry,
With all of the capabilities of the central banks and the bullion banks to leverage leased gold, buy futures contracts etc to protect themselves, and keep the price of gold lower rather than higher, how long can could this go on? I am talking about the gold carry trade as described in other financial newsletter literature. It seems to me a lot of smart money would prefer not to deal with the “gold relic” resulting in another whack to all of us tentative gold linvestors, if “they” can put in a fix. Some serious chartists do not discount another low water mark, below $800.00, for gold. Is it possible that many of us could get whipsawed at the worst time in our lives?
Larry,
What will the impact of a falling dollar have on each of the following different retirement asset classes:
1. Stocks
2. Realestate
3. Annuities
4. Bonds
5. commodities
6. Social security
Most of your readers, I assume, are diversified and a falling dollar will have an impact across all asset classes making it difficult to protect oneself. Do you have some suggestions on how to prioritize and protect our future retirement portfolios?
This has already been addressed above. I am retired and only have a small IRA account between me and poverty. I put half of it in short-term Treasury-only fund and some in GLD. I expect neither one of these will be safe. Waiting anxiously for your recommendations. Thanks.
I am very grateful for your concerns and the timely information you provide to our audience. I subcribe to “The Foundation Alliance”.
- Will we be advised in good time to close any recommended positions which will be affected adversely by a devaluations of the USD.
- Which stocks and commodities are likely to keep their relative value in the event of a sudden devaluation of the a: - the USD, b: other currencies, c: replacement of the USD as reserve currency?
- Will silver or other commodities increase in price proportionately with the price of gold?
- Nobody uses precious metals to pay for groceries, clothing, cars etc.. Will the price increases you’re inferring to, be immediate or scaled over a period of time: days, weeks, months ..?
You have certainly opened a can or worms and got us really concerned. Whatever help or insight you can provide will be deeply appreciated.
Maurice Jegues
Where do you suggest I buy gold?
Larry…
If this does come to pass, overnight, which position (asset) will be most likely to still be valued enough, and liquid enough, to buy gold?
Dan
Hi Larry,
Many can take credit for the coming decline and fall of the once great USA…not the least of these are the current President and Congress, the media, bankers, and investment brokers. Domestically, the currency, in whatever form it eventually assumes (excluding the mark of the beast), will still be readily divisible and will still retain its quality as a medium of exchange…only its quality as a store of value and its use as an international medium of exchange will be burnt toast.
It’s now time to find a closer relationship with God, family, friends, neighbors, community, doctors, fuel oil or heat suppliers, farmers, the county sheriff, and others on whom we are dependent as well as those who depend on us. The best and the most long-lasting investments are in relationships as well as in our creativity, education, freedom, health, and morality.
Jim Price
Does the sudden doubling of the price of gold have any repercussions on the monthly amount of my mortgage paymen? –I don’t see how it could, since the payment is established by contract between me and the lender.
Dear Larry,
I have about $75,000 dedicated to the cycles investment plan. It seems to me that only $25,000 may not be enough to recoup the cost and still make a nice profit. I am investing about $7,500 per position and have had only three positions at one time. This leaves a large portion of the dedicated money uninvested. Do you see, in the future, a larger percentages of the dedicated funds being investmented?
Larry, I think it is absolutely fantastic that you guys are taking the time and trouble to explain to anybody interested in listening what is happening in the financial world. I read your posts regularly. However being in Australia I need to caution myself about the direct applicability of your advice. Can you provide some guidance for your readers living here in Australia?
Many thanks….Helen
I am concerned with the billions of dollars that fund Life Insurance & Annuities. The only way to protect the long term investment is to withdraw & from Life and Annuities and park these dollars in gold now.
How would they re-set home payments? Auto Leases? etc?
If the government devalues the dollar by one half and comes out with a new dollar bill it will mean that everyone will need to pay off their loans with twice the original dollar. I think I’ll pay off as many debts as I can and stop buying things on credit. Mortgage payments can become a misery especially if corporations continue sending their operations abroad and more American lose their jobs to free trade. Its probably smart to pay off the home mortgage if you can.
What will be effect on price of oil and minerals??
Larry…I need suggestions on areas I should invest in & also NOT invest in. ie coal producers, oil producers NOT oil storage or pipeline companies, gold miners, gas producers etc. What countries are good ie Brazil, China, Canada etc. What about timber growers? Avoid U.S. Treasury bonds? or
the same in funds? Bob Nichol @ 5:56pm EDT 9/20/09
It seems to me that holding anything with paper dollar (any currecny) ties is doomed. The entire stock market, bonds, banks, life insurance, et, al. Any financial instrument, other than physical gold or silver, would be subject to gutted value. If the Government makes it illegal to own or trade in gold or silver, boom, boom, we’re hung out to dry with no recourse !
Even gold company stocks would be gutted by Government edict They would simply force double the shares or half the value. It’s still boom, boom !
What can i do to get through this? With the price of gold so high i wouldn’t be able to buy much gold. I have a few gold shares that you have recomended. What else can i do ?
Larry -
Just keep it simple. Be specific about timing, amounts, commodity types, and the best vehicles to buy them.
If the US dollar ever becomes totally worthless, would there ever be a time when keeping any money in savings, money markets or cds through the banking community that it would be recommended to pull everything out of the banks?
EXPLAIN WHY IF GOLD WERE 2000/OZ WHY WOULD THE COST OF EVERYTHING GO UP PROPORTIONATELY.
So , based on your prediction that the dollar will continue its drop,l how should we allocate our assets?
Dear Larry:
I regret that I didn’t follow your advice and take part in this huge rally, preferring to take Dr. Weiss’s advice and stay heavily in T-bills. Naturally, I’m very upset and am questioning whom to listen to; I’m a long-time subscriber and am wondering if I should cancel my Safe Money Market subscription and subscrbe to your newsletter. I can’t go on trying to follow sharply conflicting advice. Please tell me what a conservative investor needs to do right now because it sounds as if major events are in prospect in the near future and I don’t want to miss another huge opportunity.
I realize you may have a conflict with Dr. Weiss, but you can’t ask people like me to follow both of your recommendations when they are 180 degrees apart. PLEASE HELP.
Thank you,
Bruce Blinn
What about the little guy, the one who only has about 50 to 100 thousand in a Roth Ira? What should he do?
Keep an eye on WAMUQ. it’s started upwards
Hello Larry, First thing to do is to rein in the US war machine, how much a year is spent on this over supply of firepower, do they really need more ships ,planes ,rockets,ect. the US is unbeatable in a REAL WAR, so there is no need to keep building at this point in time……… there must be many more ways to save but this is the most outstanding to me, cheers
We sit with all money in cash at T.D. Ameritrade. Should we be invested in gold/gold stock and/or what else? Would appreciate directive from you people.
Dear Larry,
My wife and I (both retired) hold significant savings, including IRAs, in equity-indexed fixed annuities. While we have held these annuities for approx eight years now, there still remains a sizable penalty for early withdrawal or contract liquidation and, thus, a lack of liquidity limits our ability to transfer assets to more protective and/or profitable avenues during these changing economic times. Have you a suggestion for my predicament?
Hi!
I often here that owning physical gold and silver is the best way to protect ones capital. Why is it better then owning let’s say shares in GLD or SLV or even call LEAPs in those ETF’s for more leverage? Thank you.
Larry. I don’t get how does doubling the price of gold has an effect on the us dollar or any of the other currencies? And wouldn’t all the other currencies also be devalued in proportion to the us dollar? please explain. Thankyou.
Dear Sirs:
My problem is quite simple.I don’t understand how to invest.How can I profit after fees and taxes?
Where can I invest or buy in to something that will preserve my money’s value? Maybe in gold?
Should we be buying gp;d at current prices around $1,ooo or will there be declines? Gold coins? Gold ETFs? What other forms,such as gold stocks?
If the government devalues the dollar by one half and comes out with a new dollar bill it will mean that everyone will need to pay off their loans with twice the original dollar. I think I’ll pay off as many debts as I can and stop buying things on credit. Mortgage payments can become a misery especially if corporations continue sending their operations abroad and more American lose their jobs to free trade. Its probably smart to pay off the home mortgage if you can.
Should we be buying gold at current prices around $1000, or will there be declines in price along the way?? What form or gold–coins, ETFs, gold stocks? What other natural resources would be best?
Larry,
I can not accept your view in the “Bernanke’s Secret Debt Solution” that all major currencies will be devaluated simultaneously. If you really believed this you would tell us to put all our money in gold & commodities, not just 25%, and buy more now vs waiting. I think it more likely that the U.S. dollar will fall vs the other currencies. (You said yourself that Asians are refusing to accept U.S. $100 bills). If all currencies devaluate the same amount it is almost as if none did. Their relative values to one another will still be the same. Sure, this will help the U.S. government pay it’s debt and Social Security obligations in cheaper dollars. But how does it help the international banking cartel that controls the U.S. and G7 governments for their own profit ? Don’t these bankers have most of their money in bonds ? Their bonds would fall in value and they would lose money. Haven’t these banks made loans all around the world ? Their loans would be repaid in devalued currency and again they would lose money. Foreign governments with positive credit would be stupid to agree to something that only benefited the U.S. (and other debtor nations) and hurt themselves. With a devaluation in all major currencies, the price of food, fuel and other goods might double (at least short term), causing riots and potential rebellion. All the rich people in the world (not part of the banking cartel) might see their wealth be cut in half or more. Better for foreigners to just let the U.S. dollar collapse. China will still be the main exporter of manufactured goods. The U.S. has lost most of its manufacturing base, and will not compete with China unless Americans work for $4 per day like Chinese workers. Please justify or reconsider your views in response to these arguments. This is critical for your subscribers to protect their wealth.
Larry- You are a KNOB for deleting my comments. Why don’t you want the people to read the truth?!
In summary, buy physical gold and silver- not ETF’s they’re fake.
IF A DEVALUATION DOES OCCUR AND GOLD IS REVALUED AT $2000, WHAT HAPPENS TO MY MORTGAGE OF $200,000. IS THAT REVALUED AS WELL TO $100,000 SINCE I’M PAYING THAT OFF WITH CHEAPER DOLLARS? IF NOT, THEN WHAT IS THE ADVANTAGE OR DISADVANTAGE OF DEVALUATION TO THE MORTGAGEE OR THE MORTGAGOR?
What should I invest in regarding my 401K? My 401K doesn’t offer a gold, oil, or natural resource fund?
Thank you sincerely for all of your advice!
Larry,
With mortgages that must be paid as well as food and utlities, and with the threat of a weakened dollar, what do we do with the few thousands saved in the bank? Do we buy gold and silver leaving no cushion for paying bills or meeting emergencies? I’d love to buy a few acres of farm land but then there would be nothing left.
Social security and a state pension keeps me above water but there is no guarantee there.
I do have a few mining investments, and a few agora investments that look promising for the future.
When you give us your reccomendations, remember there are many of us who no longer or never had over 50 thousand dollars to even invest.
Most of the investments Martin recommenfs require a goodly sum. It’s the little person that seems to need the most help.
anxiously awaiting for your recommendations and thank you for your concerns for us.
Ruth
We just went through a housing bubble, so the following may seem to be sort of a paradox.
Some of us sold homes prior to the housing bubble collapse and are renting at the present time.
Since a house is a hard asset, and we are in the process of the demise of the dollar in the very near future. with a coming substantial loss of the dollar’s purchasing power on the near horizon
Then shouldn’t we expect the price of a home to surge to compensate for the dollars dive
Is it not also an essential hard asset as other essential commodities
It seems we have about come full cycle in returning to our founding days when the “Continental” wasn’t worth the paper it was printed on.
Appreciate your input in addressing the above issue. on housing.
Arne
What I would like to know is how can anyone in the us protect what little money they have is Cash or even invested funds in stocks or bonds??
I second Marvin’s question: how does the average Joe buy gold? I once bought some silver coins. They were incredibly heavy. Wouldn’t this be the same for gold? How/where do you store it?
Thank you.
what about silver, do you see investment potential in silver?
I am retired and have a fixed income Not a great deal of wealth to invest over seas or realestate
Where can I put my money to protect my retirement.??????
My financial advisor will only respond to me, based on what the market is doing. He does not look at the politics of the market. He is into large corporations that have a major presence outside of the U.S. As a investor, what else percentagewise should retirees be doing?
Please tell us who are the gold brokers we should purchase from when the time comes.
WHAT DO I DO? I HAVE ALMOST ALL OF MY INVESTMENTS IN LIFE INSURANCE, ANNUITIES, BONDS, MUTUAL FUNDS, A FEW STOCKS, A LITTLE IN MONEY MARKETS, AND SOME CASH. IF THE DOLLAR GOES WORTHLESS, IS ANY OF IT SAFE?
All I have for income is Social Security and an IRA account. I am in The Foundation Aliance and am invested in those recos but what else should be invested in? Thanks for your blog and help in the TFA.
Larry, is it true the IMF is going to sell $9 billion in gold in the next several weeks?
Larry,
Thank you so much for offering to help. The money I can get my hands on right now is in a fund recommended by Martin Weiss some time ago. It’s a VanguardTreasury Money Mkt Fund. Should I withdraw it and buy gold with it and if so, in what form should I buy the gold and from whom?
Again, thank you so much for your help.
Ida Zinam
Larry,
Thanks you for your insights on how t preserve our hard-earned money. My question is, how does devalueing the dollar in relation to gold help the U.S. pay its debt? The U.S only has $300B worth of gold, that’s assuming the gold in Fort Knox exists. That’s nothing compared to the debt. Could you explain? Thanks for all you do.
Is this why they are offer CASH for gold…buying it all up?
Bloomberg Sept 21 Cordell Eddings and Lukanyo Mnyanda: China Can’t Get enough Treasuries as Dollar no Deterrent to Foreign Buyers: international investors are increasing treasury purchases even as the dollar falls…43.1% of treasuries sold this year were bought by investors outside the US…1.41 trilion vs 27.1% and 527 billion issued to this point in 2008…Federal Reserve holdings of treasuries on behalf of foreign accounts rose 16% to 2.07 trillion since the March high in the dollar index…China added 24.1 billion in July after net sales of 25.1 billion in June, raising it’s stake in US govt debt by 3.1% to 800.1 billion…China’s holdings have risen 10% this year after a 52% gain in the 2008 surge in demand for safety…US will sell another record amount of 2,5,and 7 year notes this week…Foreign governments have little choice than to buy treasuries because they hold so many dollars…Us dollar accounts for 65% of world currency reserves, up from 62.8% in mid 2008 according to IMF.
I’m sure I don’t understand this. However stories like the above and the things you are saying about investors all over the place dumping dollars seem to directly contradict each other. I don’t know. I just don’t know anymore…
What should one do with an IRA ? How much is gold now worth?
What about Life Insurance,is going to be worth anything?
Thank you,Thelma
Hi Larry,
Besides owning physical gold in the final scenario you predict (of raising the price of gold…I agree with your prediction) what good would it be to own stocks in oil, gold mining, etc. that you recommend?
In the even they went up with the new price structure of gold you predict, they would only be redeemed for the new “dollar” at a one to three ratio, right? In that case, we would still be in the hole with our stocks, even if they went up…
Also, is there any serious talk of nationalizing personal oil/gas assets, et al?
Thanks,
Dan
Hello Larry:
Please advise on best ways to escape from dollar savings and investments.
Should one diversify among the several gold ETF’s (London, Swiss …held) and on which percentages. If bullion or coins are the answer, where should one get them and store them?
Where can I buy foreign short term bonds and stocks, and bonds of which foreign countries do you recommend?
Are there any other investments to be considered?
Thanks,
Elisa Entine
If this is a pending event wouldn’t we see action in the bond market. You are betting on the inflation crowd using a currency re-valuation versus a deflation event in which the holders of the debt call for payment. Is there a single event that could tilt this one way or the other?
Larry:
I don’t envy you (and your staff–you would certainly need one–) combing through all the comments
and suggestions that you bravely invited. I have read only a small fraction of them and many
ideas and queries were duplicated numerous times.
However, In the 1 1/2 hours I read through a part of them I did not see any mention of tax- free state and
municipal bonds and the effect of re-pricing gold would have on them and what action you would
advise to those who own them.
My only suggestion to start unravelling this can of worms is to go to the syndicate that had been
so successful in controlling and suppressing the price of gold for the last ten years or so (at
substantial profits to them and their clients) and attempt to find out what they plan to do. To my
way of thinking if they had not played with the price of gold during all those years gold would
have reflected its true value in an orderly way and not have had such a violent surge that when
added to the policies of the past chairman of the Federal Reserve has caused the problems
that ordinary people face now.
I congratulate you on your willingness to get involved in this project. Good luck!!
If all, or many, of the G-20 currencies are devalued at the same time, would we be facing a hugh inflationary environment? What type of real assets would survive such a debacle? Would Commodities hold up? Is the answer more international investing in countries where the currencies are not likely to be devalued? Would US inflation protection bonds hold up? Even if the value of such bonds is significantly reduced, wouldn’t inflationary pressures begin to revive as individuals and corporations attempt to make up what they just lost in the devaluation?
If the G-20 currencies devalue at the same time, and in the same amount, then wouldn’t the relative values of the currencies remain the same? I am not a currency trader but are their any currencies that would retain their value, like the swiss franc or some other currrency?
larry i have quite a bit of cash plus about half millon in gold coins
i get confused all the time as to where to put this cash
could you call me so that we may chat some concerning this 704 377 6799 or advise me
on this problem i really need help soon if not immediately thanks dick
Claus Vogt was ranting about Fed money printing last week, and how this increase in the money supply is inflationary. But this is a fundamental misunderstanding about basic economics. An increase in the money supply + available credit is inflationary. Since credit is contracting faster than the Fed is printing money, aren’t we in a deflationary situation in the US? So which point of view do you ascribe to (which I assume influences your recommendations) - inflationary or deflationary?
My question is: When the government owns every thing as the way it’s going, what’s to stop them from owning and controlling the gold or even taking it away? Please don’t laugh. To control the people they have and will control every thing. I have over 25 years in the housing industry. Do you think this economic collaspe just happened?
What’s better to own then gold or silver? It’s land with water. Natural water. You can’t eat gold or silver, but you sure can grow a lot of food and survive with water.
I’ll be selling and trading my water for your gold and silver.
God bless all of you.
Buy land with water.
How about putting cash into the currency ETFS. Which ones would be best?
The G-20 meets this week. Do you think the $ devaluation may happen this week or very shortly after?
I have several CD’s in varous currencies. They are doing well since those currencies are appreciating against the dollar. If the price of gold were to increase rapidly as you are predicting will all these currencies also lose their value? Will some of these currencies such as the brazilian Real retain their value against the new price of Gold?
A question - The Foundation Alliance and other Weiss sources are saying that medium term (until early next year) stocks appear to be heading up - a bear bounce. However, in your lengthy report on Bernanke’s debt solution you suggest that investors get out of stocks altogether. Which advice should a person follow?
My question is: Would buying stock in a gold mining company be the same as buying gold? I mean would it be a good investment if the price were right? Maybe not, stock is paper, so should we buy gold instead?
How about some guidance regarding how to purchase gold or gold coins via a Self-directed IRA to convert and protect retirement funds?
Please give interim choices, if possib;e
Hey, wake up you people! Gold is wealth STORAGE! You don’t use a Maple Leaf to buy a loaf of bread, you use it to park your wealth and make big-ticket purchases. Silver, on the other hand, is your spending money. “Junk” silver, Walking Liberty silver dollars, Indian Head sterling - you spend this stuff.
When everything comes down, I DO plan on selling a roll of “junk” silver dimes or two to yuppies who stupidly bought nothing of gold, and who snubbed silver but will be starving.
Turnabout is fair play!
ARE SHORT TERM US TREASURIES STILL THE SAFEST PLACE TO BE ? DO YOU RECOMMEND TAKING OUT AS MUCH MONEY AS POSSIBLE FROM ANNUITIES AND PUT IT INTO TRESURIES?
THANK YOU FORM YOUR HELP.
Dear Larry,
Thanks so much for your insightful emails. My wife and I are mid-to-late-fifties Americans retired in Chiang Mai, Thailand, after 12 years of bicycling around the world.
Yesterday morning while riding our bicycles to Tesco/Lotus to stock up on essentials not available here in the local-market, we had a revelation. One that I’m thinking you may appreciate, because it puts a great deal of what’s going on around us all into perspective, and we think frames our future options pretty vividly.
For some time now too many Americans have been operating on the premise that there are no limits to [whatever] so long as someone else pays. I don’t know when this started, but I’m pretty certain it began sometime before 1950, the year I was born, and then began accelerating with the aging of the Baby Boomer generation.
For example, for all those Americans who pay no IRS taxes whatsoever, why shouldn’t everyone else, all those who do have to pay taxes, be required to help pay for their food, housing, education, healthcare, and even automobiles [Cash for Clunkers]? For all those Americans who live, function, and adhere to the principle that everything is morally and socially acceptable…so long as someone else pays, this is an understandable demand.
It also makes obvious that the takers now outnumber the givers in America, and that’s a problem.
Now that the taker constituency represents more than 50% of the American public, nearly all of whom voted for Mr. Obama, is there anything that can stop America’s momentum toward near-certain economic [and social] oblivion?
We’re thinking that this theme explains why the American government is now actively debasing the value of the US dollar. And it strikes us that if we want to protect ourselves from a depreciating US dollar, we had better first understand why it is happening.
With our little revelation, we now think of this “why” in terms of a Five Act play…
In the First Act, our elites in conspiracy with tens of millions of main-street Americans modified a socio-financial system to enable nearly everyone to purchase [whatever they wanted] on credit, regardless of his/her ability or willingness to repay. Then Wall Street’s elites, with the full complicity of their Washington D.C. brothers [without whom none of this would have been possible], bundled these questionable loans into securities and sold them in the hundreds of billions of dollars to trusting foreigners all around the world.
When the American credit-bubble popped last September, as it inevitably had to, America left hundreds of millions of folks around the world holding the tab for our dirty little social secret… Everything is morally and socially acceptable…so long as someone else pays. Thank you world for America’s latest free-lunch!
In the Second Act, Washington’s elites accelerated the country’s overseas borrowing by well over $4 Trillion. This Second Act began last October just after our housing/credit bubble burst, and represented Washington’s desperate attempt to rescue the American economy from this frenzied self-created bottomless abyss. First they expanded the Federal Reserve’s Balance Sheet by in excess of $2,000,000,000,000 [Two Trillion Dollars], all of which was pumped directly into American banks, primarily money-center banks. Shortly thereafter, our D.C. elites [led by Messrs. Obama and Reid and Ms. Pelosi] upped the ante and expanded the national debt by another nearly $2 Trillion to $9 Trillion [$1.927 Trillion = $700 Billion Tarp program, $787 Billion Stimulus program, $440 Billion 2008/2009 supplementary budget].
Adding in all the unfunded liabilities in Washington’s Social Security, Medicare, Medicaid and Pensions systems [$56 Trillion at last count], every man woman and child in America is now saddled with $483,000 in government debt. That’s impossible for each of 305 Million Americans to repay, at least anytime during the next millennium, so what can we expect to happen?
But hey, everything is morally and socially acceptable so long as someone else pays. Right? And in the meantime, hooray for all those naive foreigners who purchased all those US Treasury bonds required to fund these various crap-shoots.
In the Third Act, which began in March of this year after the US Treasury experienced significant resistance from foreigners to continue playing along, the elites in Washington and on Wall Street joined forces, and re-doubled their so-called “rescue” efforts.
Not enough foreigners want to buy American Treasury debt…no problem! The Fed simply began “printing” dollars to buy the Treasury’s debt. Larry, that is roughly akin to your left hand buying the debts incurred by your right hand, and then you partying to celebrate the resolution of all your loan problems!
Most of the world’s central banks [including Thailand's Central Bank] followed along with similar programs, like obedient little lemmings marching over the cliff and into the sea. Otherwise, the US Dollar would have long ago crashed. Much of this “newly” printed money ended up sitting on the balance sheets of bankrupt money-center banks around the world.
At the urging of these same Central Bankers, huge zombie banks promptly invested a portion in the world’s stock markets. The stock market bubbles created from this joint exercise represent the lion’s share of the so-called “green shoots” the mass media is forever touting. The American consumer is not spending, he’s saving, or unemployed…15.2% in Michigan, 13.2% in Nevada, 12% in California. Seventy percent of American GDP stems directly from consumer consumption. All the “green shoots” daily being advertised on the media relate to the prayer that stock market investments are somehow signalling an end to the world’s economic woes.
The Fed calls it “Quantitative Easing,” but truth be told, Mr. Bernanke has been “Monetizing the Treasury’s Debt” for quite some time. Ditto Great Britain and the ECB. America’s big banks have dutifully sucked up much of this money, and along the way pretending to be “healthy,” funneling $100+ Billion into the US stock market since March 9, 2009.
Like cancer cells, this phenomenon has spread nearly everywhere around the world, including Thailand. Otherwise the US Dollar would most assuredly have crashed sometime in July. Everything is morally and socially acceptable so long as someone else pays.
In the Fourth Act, which began in late August or early September, and this is where it gets really interesting, the elites of Washington and Wall Street became desperate to continue fueling their “Big Lie.” That’s when they decided to actively [but covertly] devalue the US dollar.
We hourly hear this strategy expressed in mainstream American newspapers and other media…a devalued dollar increases the attractiveness of American exports, and that’s supposed to be goooood, if not for the country’s unemployed, that at least for restoring the long-lost power of America’s Labor Unions, right? Oh really?
Where America’s elites have previously been overt in twisting foreign arms to buy our debts, the economic situation is now so gawd-awful bad that the country’s elites are driven into a rather more dangerous covert world.
As the value of the US dollar plummets, literally every human being on the planet [including all the Thai's we hang with here in Chiang Mai] is being covertly taxed to pay for America’s profligate spending. Every time someone in Thailand or Rwanda buys a liter of petrol, they effectively pay a covert tax in US dollars [the US Dollar being the world's Reserve Currency]. Every time exports are traded for imports anywhere around the world, America extracts its covert tax. But hey, everything is morally and socially acceptable so long as someone else pays.
America has finally sunk all the way down to its lowest common-denominator. This “taker” constituency has elected a terrific President to lead and cheer them on. Now the takers hold nearly all the levers of power in Washington. And their brothers, also natural-born socialists, the ethnic minority that control Wall Street [78% of whom voted for Obama], hold nearly all the levers of power on Wall Street. Taken together, these folks control America lock, stock and barrel.
But hey, everything is morally and socially acceptable so long as someone else pays.
As happy readers of Ortega Y. Gasset were advised in the 1920’s, Democacy’s long-term tipping point occurs the moment the masses really, truly realize that they have the power to be absolutely selfish. When society declines sufficiently in terms of selflessness (i.e., religion, allegiance to something greater than self), then the masses will lay claim to the collective wealth of the entire polity. This concept feels fairly accurate about now.
What, we wonder, will be the Fifth Act of this grand play? Wh