How Can Investors Protect Against Currency Devaluation?

Right now currency devaluation is a big concern among investors and consumers both, and if this happens then the consequences could be disastrous for a large portion of the population. Is it possible to protect against this possibility though? In most cases the answer is yes, and this concern is one of the reasons that silver and gold are such popular choices and top picks today. Many signs are pointing to the fact that the US dollar is weak, and the printing of new money is just making things worse.

silver and gold barsThe Federal Reserve has engaged in a number of stimulus efforts in recent years, and the general result was that more currency was put into circulation and each dollar lost some value as a result. Since the gold standard is no longer applicable this entity can basically create money from thin air, but this is a shell game that will eventually come crashing down. When this occurs those individuals who have investments with intrinsic value will be in the best possible position.

Precious metals have a tendency to preserve capital and retain some value, and this makes them highly attractive for those who are worried about the slippery economic slope that we are headed down. The global economy is still barely breaking even, record deficit levels around the world threaten the stability and prosperity of many nations and populations, and the answer of the US government seems to be to just create more currency and hope that this improves things. So far this magical thinking has not been effective and fears among the investment sector have increased instead of being assuaged.

If the markets collapse and the American dollar loses all value then chaos and an end to social order as we know it could occur. Goods and services may not be accessible for those who only have cash to spend, but anyone that has silver or gold will be in a better position to barter for these things and will be better off as a result. This is one of the reasons that many survivalists recommend stockpiling bullion, in order to protect against just such an event.

Many individuals find it hard to believe that currency devaluation could actually occur, but even analysts and experts have warned that the current path we are on could end in this if steps are not taken to avoid it. The national deficit has to be reduced, spending needs to be brought under control, and the government needs to stop considering American taxpayers as a personal piggy bank who can be hit up for more taxes whenever the mood strikes. The only way that a full economic recovery will occur and the dollar will strengthen is by addressing the current problems, not by making it more difficult and expensive for investors and consumers.

Prices Reaching Record High Levels