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US Dollar and PM
Coins101
Posts: 2,602 ✭✭✭
This may have been discussed before but I couldn't find it. So, I will asked the question.
With Iran, China, India, ect. discussing using gold or other currency to trade for oil, if the dollar stopped being the "world currency" per say, what effect would this have on PM's?
With Iran, China, India, ect. discussing using gold or other currency to trade for oil, if the dollar stopped being the "world currency" per say, what effect would this have on PM's?
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Liberty: Parent of Science & Industry
<< <i>It will cause prices to fluctuate. >>
Ok, so you don't have an opinion. Anyone want to make an educated guess? It seems gold and silver are tied to value of the US dollar as it increase when the dollar goes down. If the US dollar is replace with another currency, will PM's just switch to being tied to the value of that other currency or would PM go up as I would guess the US dollar's value would decrease due to less demand.
China is so highly invested in the dollar that they have no interest in moving (quickly) to a gold standard. They might, however, move towards a gold standard by trading a portion of US debt for US gold. As a very wild guess, such a trade might happen at $ 10,000/ ounce. (so, for example, they would trade for half of our gold stock at a value of somewhat above $ 1 trillion)
Give Me Liberty or Give Me Debt
In time, the dollar sinks and gold, silver, and other PMs go through the roof.
all you would need is One global disaster or big economic crisis, and where will the world flee to for Safety?
to the US dollar.
this will not change in any of our lifetimes, is my prediction. Any noise to the contrary is just that, noise.
And transactions for gold, for example when Apmex leased space from Trump for gold bullion, or Utah or Colorado "legislating" metals for transactions, or these "gold for oil" deals" is just a gimmick. It will always be the exception, not the rule, again, as long as anyone reading this will live, that's my prediction.
Liberty: Parent of Science & Industry
<< <i>if the dollar stopped being the "world currency" per say
all you would need is One global disaster or big economic crisis, and where will the world flee to for Safety?
to the US dollar.
this will not change in any of our lifetimes, is my prediction. Any noise to the contrary is just that, noise.
And transactions for gold, for example when Apmex leased space from Trump for gold bullion, or Utah or Colorado "legislating" metals for transactions, or these "gold for oil" deals" is just a gimmick. It will always be the exception, not the rule, again, as long as anyone reading this will live, that's my prediction. >>
What you say sounds feasible but with all due respect, the dollar is being shunned world wide. You're ignoring the fact that China no longer invests in long term treasuries. Countries that run to the dollar do so only to short term notes....30 day, 3 month, and 6 month notes. All the evidence is in. The US dollar has been deteriorating for decades. I'm suggesting to you that these other nations are not stupid. They
know the balance of debt is out of control here. You can't really say the US dollar is a safe haven. We're the largest debtor nation
in the history of mankind. Will we survive as a nation? Probably. Will there be chaos in the streets in a few short years? Probably.
It's no "gimmick" that nations are trying to figure out the safest place for their trade currency. It's not the US dollar. US Corporations are safe havens, but not the US dollar.
Give Me Liberty or Give Me Debt
<< <i>Central Banks have moved to dumping dollars and are buying gold. >>
I don't know much about PMs but didn't the central banks sell most of their gold at around $350? If they did and they are buying now it seems like they buy high and sell low.