If the Dollar Collapses?

Question

I was wondering how to prepare myself for the collapse of the economy and the dollar?

Will buying phisical gold and silver preserve my wealth until a new currency is created?

What happens to my stocks i invested in?

Answer 1

I think silver and gold are the safest place to be at this point in time.  Without knowing which stocks you own, I can't say what might happen.  I am holding some stock in several mining companies.  The markets are obviously being manipulated so be careful.  If you do go with gold and silver, don't keep it in a safety deposit box in any bank.

Answer 2

When the dollar collapses, all dollar denominated investments go down the tubes.  Gold and silver have no connection to the dollar, and will speak for themselves if you hold them.  I might recommend a swiss bank account, denominated in swiss francs.  

Grandpa

Answer 3

if the dollar collapses, what happens to your investments will not even cross your mind.

for the dollar to collapse (in my opinion), there would have to be sustained nuclear war, with a global embargo on the US.

Answer 4

When it comes to investing.... particularly in volatile times like these...

DIVERSIFY.

You need to have some gold, as much as 10-20%, as a hedge against inflation anyway.

As far as the rest of your money goes...

DIVERSIFY.

This dollar crisis and the global credit bubble bursting is going to be bad, but I don't think I'd sell everything I have and buy a bunch of gold and move into hole in the mountains or anything... yet.  Gold might go back down to $300 per oz.  (I doubt it, but you never know.)

Don't put all your eggs in one basket... ever.  Make sure you have your money in a lot of different things.  Invest in both foreign and domestic companies.  The key to not losing your shirt in times like these is diversification.

Answer 5

The economy will not collapse, nor will the dollar.  The dollar is strengthening against the Euro, gold is dropping, and oil is dropping.  The US economy is just one part of a globally integrated economy.

Gold can preserve wealth in an environment when the dollar is falling, but you will lose money in gold if the dollar continues to rise.  

There won't be a new currency.  The dollar will be fine.  We just need to ride out this brutal economy just like we have in past economic downturns.

Answer 6

Read up on how the Russians survived the fall of communism to get some ideas. They did things like growing their own vegetable gardens and joining  collective farms to share each other's produce. They also swapped services with each other. For example, if your car broke down and someone knew how to repair cars, you would do a service for them that you're skilled in (or give them some of your goods), etc. The main thing is to learn how to rely less on paper money since it will be worthless.

I also recommend resolving any outstanding debts. Work on getting debt erased from your credit files. They have power over you when you default on credit/loans, and they actually want people to default. It's a really evil scheme but it's happening everywhere. Also, in a collapse, your stocks would be useless - you'd lose everything.

I suggest you start stockpiling necessary food items and medical supplies. Food shortages are a definite possibility with an economic collapse -this is something that should be taken very seriously.