The global economy is struggling at best. Central banks continue to beat the same dead horse policies that have provided no relief whatsoever to investors and even worse, actually serve to expedite the collapse of the already crumbling global economic infrastructure. Newer envelope-pushing policies, like negative interest rates, are proving to be an even worse idea than indications were on paper, nevertheless the list of participating countries continues to grow, as does the list of countries on the verge of bankruptcy.
The Chinese Yuan is preparing to join the small group of International Monetary Fund (IMF)-approved global reserve currencies, effective October 1, 2016. If this basket of individual currencies continues to flounder, it may not be long at all before the IMF steps in and implements an IMF-sponsored “One World” currency. The global standardization argument for this is obvious, but the ramifications, especially for the U.S. dollar could be cataclysmic and immediate. Floundering global economic growth, Brexit and other fractures in the global economic fabric are providing increasing credibility to this proposal.
I stressed “physical” in the title of today’s blog article, because the physical ownership of precious metals will be critical when any of the afore-mentioned dominoes fall. It amazes me that so many find solace in ETF’s like GLD and SLV, but if you read the fine print, you’ll realize that if a One World currency were to be implemented on October 1, the rush to cash out would result in a price freeze of the stock, so regardless of how much the spot price of physical precious metals were to increase, those ETF owners would not stand to benefit, just like almost every other investment instruments which would ultimately convert into a debased-dollar that would somehow convert into a watered-down amount of the new One World currency.
Physical precious metals will shine brightly with any type of financial bedlam, but especially with any type of currency debasement. Precious metals have a long and illustrious history of being the world’s best store of value and when it takes a Weimar-style wheelbarrow of cash to buy a loaf of bread, those silver American Eagles, for example, will be easier to handle and far more readily accepted. Don’t wait for the bandwagon. By then it will be too late. Protect yourself, your family and your legacy with physical precious metals. Now!!!