How to Profit from the Falling Dollar
The dollar has lost 35% of its value in the last 8 years, making Americans 35% poorer. And, for a wide variety of reasons, it looks like the dollar is going to get weaker. However, just because most other Americans are getting poorer doesn’t mean that all Americans have to become poorer. In fact. financial meltdowns are one of the best opportunities to make a ton of money in a short period of time.
One of the most useful resources that I have found that teaches how to profit from the falling dollar is The Collapse of the Dollar and How to Profit from It
Here are some strategies that the book explains:
- Investing in physical gold
- Gold ETF’s
- Gold options and leaps
- Investing in gold mining stocks
- Investing in silver
- Precious metals mutual funds
- Electronic gold
I like this book because it explains the topics in enough detail to be educational, without getting hopelessly bogged down in so much information that I get bored to death. It has one of the best explanations about how to invest in gold mining stocks that I have seen.
It also talks about what investments to avoid. There is a discussion about cash, stocks, bonds and real estate, and how their value moves as the dollar falls. He says that cash and bonds will fare the worst. Foreign bonds may be a good investment, but probably not for the long run.
The book includes a great explanation of risk and leverage as well. Most investors have no clue about how much risk they are taking on when they make an investment. The authors explain the difference between the different classes of mining stocks: explorers, juniors, mid-tiers, and majors. And, the authors talk about leverage thorough buying gold on the commodities exchange, as well as buying options and leaps.
If you are interested in making money as the dollar falls, this is definitely a great resource. I highly recommend it for anyone who wants to improve their finances as our world changes.
Related posts:
- How to Profit from the Coming Gold Bubble
- Another Nail in the Coffin for the Dollar
- Is this the End of the Dollar?
- Gold Blog Roundup
- Gold and the S&P 500: What is the Future Price of Gold?
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
I beg to differ my friend. All fiat currencies due tend towards zero, but guessing which one will get there first is an impossible task. The dollar is now worth 10% more after this May against the euro. Sometimes we forget the rest of the world has problems too.
This book looks like an interesting read. I feel like it’s a little late in the game to jump into gold. But, I do feel commodities will pop, as the economy recovers.
I also feel there will be more scamflation. That’s a term I coined to describe how the government is printing money to devalue the dollar, then under-reporting the real inflaiton rate.
Nick,
I don’t know. I think it is a good bet that the U.S. dollar and the Euro will get to zero before China’s and India’s currency. Thanks for your comment!
Hope to Prosper,
Yes, if the economy recovers commodities and gold could go down. Scamflation – that’s a great term. Great idea! (That would make a great post…)
It seems Eurozone debt troubles shuffled the cards. This book puts a lot of stress on gold, however as HtP noted, it’s a bit too late to make big money with gold (and if you like Soros you can even believe in the gold bubble). And what about the latest big discovery of precious metals in Afghanistan? Such discoveries can pretty distort the trend…
Jay B,
Yes, I agree that the Eurozone troubles did change things. But only relative to the dollar. In fact, the situation could be a stronger argument that gold will go up. Why is it too late?
I don’t know if Afghanistan will make a difference within the next 5 years. It takes huge investments and years to develop mines, and that is under normal conditions. It is going to take a long time to build gold mines and set up the processing equipment. Who is going to want to go there and work in the middle of a war?
George
George,
I was already writing a post on Scamflation and I linked it back to you. The problem is my readers don’t seem to enjoy my posts on the economy. It’s a critically important subject, but it’s about as popular as a wet dog, without a duck in his mouth.
I read today on Yahoo that some people are skeptical that the Afghanistan claim was only tossed out there to extend the war. I would love to see their people catch a break and run into some wealth. And, I would love to see more sources of Lithium to reduce the cost of electric vehicles. But, I’m not sure if mining operations will benefit or hurt Afghanistan. They would probably rather see us pack up and leave, then to have us hanging around digging up their country. The money probably isn’t nearly as important to them as their sovereignty.
Bret,
Thanks so much for the link. I really appreciate it!
That’s a good point about your readers. We always want to create posts that people actually want to read!
I saw that article on Yahoo too! It was very relevant to our discussion. I am not sure if natural resources like gold and lithium will help them either…
George