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The U.S. Dollar Will Collapse in 24 Months
Your Only Hope: Owning Gold and Silver
By Greg McCoach
Friday, December 17th, 2010

Investors have been shuffling currencies around faster than a game of three-card Monte as the true value of world's paper money is being exposed.

But in the end, the only real winners would have walked away from the table long ago, their pockets stuffed with the only currency that really matters: gold.

The consequences of decades of abuse to the system of credit in the United States are coming to a head. And the gray clouds that loom over the skies of the dollar are growing bolder by the day and darker by the minute.

The cold hard fact is I expect the U.S. dollar to ultimately collapse within 24 short months.

This failure will likely push gold prices to over $5,000 an ounce. Meaning that, even at $1,400 an ounce, gold is still dirt cheap.

Every investor should own gold right now as the ultimate store of wealth that will protect hard work and savings.

As the world begins to learn the true nature of the world's funny money, masses of new buyers will come flooding into the gold market. And this surging demand will be the catalyst that launches the price of gold into the stratosphere.

It's pretty simple...

Most investors are unaware, but the gold market is incredibly small.

There have only been about 175,000 tonnes of gold ever mined. That means there is only 0.9 of an ounce of gold for every person on the planet.

That's why they call it precious! Simply owning a single ounce of gold puts you in a much higher global economic class.

When the oceans of fiat money suddenly try to take a part in the gold market, the law of supply and demand will fundamentally force prices much higher.

But don't put all your eggs in the gold basket

While the price of gold will soar and get most of the attention, it's silver that typically outperforms gold, dollar for dollar invested.

In certain instances when gold prices have doubled, the price of silver has outperformed gold by a factor of more than six-to-one!

World Silver
Investment Demand
■Investment demand for silver has skyrocketed 522% since 2007.
■World governments are hoarding silver; official sales have plummeted 83% in the past three years.
■Above-ground silver supplies dropped 86% last year.
■Industrial demand for silver has increased over the past decade, despite a 236% increase in prices.


The only problem with silver is that it's not as portable as gold.

You can hold $50,000 worth of gold with your two hands cupped in front of you. You could put that gold into your coat pockets and walk down the street without anybody knowing what you are carrying...

On the other hand, $50,000 worth of silver would take a hand truck to move.

Investors should also consider owning silver for the potential use to buy day-to-day items such as bread and prescriptions drugs, preparing for the time the government declares a “bank holiday” as the crisis in the banking sector exacerbates.

During a bank holiday, checks and credit cards will no longer be accepted as payment for goods and services.

For this reason, I also recommend keeping some cash on hand at all times. I'm not recommending stuffing the mattresses; but it's probably smart to keep a few thousand dollars in 1s, 5s, 10s and 20s around the house.

U.S. Silver Eagles would also be very useful in such an event, as they are considered legal tender in the United States and could be used to purchase groceries.

Why lose sleep?


Ownership of gold and silver will become one of the hottest investments on the planet.

The early adopters — those who wisely purchased their positions before the masses come — will sleep well at night while others fret as they watch the purchasing power of their savings evaporate like water in the Sahara.

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Thoughts??

I could probably find an identical article from 24 months ago.

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Most investors are unaware, but the gold market is incredibly small.

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Whether the Dollar collapses or not, gold always has been/will be a good investment. That's because, until the day the Human population becomes stagnant or extinct, gold's value will always increase. Why? Supply and demand. Our population grows faster than we can mine gold... and eventually all the gold will be mined... that means the gold:person ratio will continue to get smaller and smaller, and people will always want gold.

Imagine one gold coin and four people, each fighting for it. Now imagine it's 20 years later, there's now eight people, but still only one gold coin. It suddenly has twice the power (value), right?

Back in reality, we can see the evidence to support this.



Ten years ago gold was worth $300 USD. Today it is worth $1,400. That's a 466.67% increase, although since we're comparing it to an elastic currency we have to make the correct adjustments.

$1.00 in 2000 had roughly the same value as $1.27 when 2010 ended. That means, using the 2010 Dollar's value, ten years ago gold was worth $381 USD. In other words, gold only really gained 367.45%, not 466.67%. Now let's look at the world's population.

World POPClock Projection

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According to the International Programs Center, U.S. Census Bureau, the total population of the World, projected to 01/06/11 at 18:46 UTC (EST+5) is

6,891,846,346

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