Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Why I Still Like the U.S. Dollar in a Crisis

Currencies / US Dollar Nov 30, 2010 - 11:51 AM GMT

By: DailyWealth

Currencies

Jeff Clark writes: "Where the heck is our emergency cash?" I asked, looking squarely at my wife...

The mountain of $20 bills I stashed away last year was now nothing more than a mole-hill.


"I needed the cash when the girls and I went to New York last month," she confessed, "and I didn't have time to get to the bank."

"But what if there was an emergency?" my kids gasped in unison. The look on their faces was sheer anguish. And it was priceless.

Even 8- and 10-year-old kids know you need cash in times of crisis. You need dollars.

Gold is nice, too. It's a store of wealth, a sleep-tight investment that'll come in handy when Armageddon arrives. But for crises that are somewhat less Armageddon-ish, dollars are more useful.

Think about it...

When terrorists flew planes into the World Trade Center, the dollar rallied 8% in six weeks.

When Lehman Brothers went belly-up, and the U.S. banking system was on the verge of imploding, the dollar jumped 10% in 10 weeks.

And last May, when a few algorithmic programs made computer trading go nuts on the New York Stock Exchange – resulting in a 1,000-point drop and recovery in the Dow in 15 minutes – it sparked an 8% rally in the dollar over the following six weeks.

How did gold do during those times? I don't know... I didn't check.

All I know is I've never had a problem exchanging dollars for any sort of goods or services. It didn't matter where in the world I was at the time. If I needed help, a greasy palm full of greenbacks always did the trick.

Of course, I understand the problem of fiat currencies. The folks in charge of the printing presses go nuts and purchasing power is destroyed. I get it.

But until Safeway is willing to exchange a basket full of groceries for my MS65 Saint-Gaudens gold coins, I'll keep a stash of $20 bills in my survival kit.

My point is... in times of crisis, when investors need liquidity, the world flocks to the dollar. That has always been the case. And, at least until Armageddon arrives, it will continue to be the case.

So in times of crisis... in times of emergency... I want to own dollars. You should, too.

Good investing,

Jeff Clark

Editor's note: Jeff is putting his money where his mouth is... in last month's issue of his Advanced Income newsletter, Jeff put on a super-safe bullish dollar bet that pays a 30% annualized income stream. To learn more about Advanced Income – and how to collect that income tax free – click here.

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2010 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

JL
01 Dec 10, 00:47
Dollar ?

The author's point seems to be that he doesn't feel we are headed for a major type of financial crisis that would warrant using precious metals as currency. All you know is you've never had a problem using US currency for goods and services? That's as weak an argument as I think anyone could come up with. The point is, if we are heading for seriously tough times, the things that worked in the past aren't going to work.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in