Most currencies in the world have declined 25-30% in the past several years. Most commodities have gone down 20-30%. The stock market is near all time highs. The US debt is at all time highs. The boat usually sinks when all people get on one side of the boat. I would encourage our readers to be cautious in this area. I have attached open positions and how we are personally trading this. Posting these results comes with the usual disclaimer that past performance is not indicative of future results and trading involves extremely high risk.
Currently, the dollar is the world currency. The Chinese are in the process of opening a world bank. The Australians and Japanese have implied that they would like to be on board. This is another factor to consider about the possible demise of the dollar as the world currency. We went off the gold standard for our currency in 1972. Therefore, the evaluation of the US Dollar is based mostly on trust. Conclusion: Think about diversifying your assets into other currencies.
Australian Dollar – The attached chart shows the monthly performance of the Australian Dollar. Our debt to GDP is around 100% whereas the Aussie’s is about 30%. Our debt is at such enormous proportions that one day we will hit a freight train.
Gold – There is a huge question about our gold reserves at Fort Knox. We have not had an audit in 40-50 years. China has announced they have a huge supply of gold. The numbers simply do not add up via gold mining. Either the Chinese are lying, or we do not have the gold reserves. Investors are placing their money in the US Dollar based on trust. If this trust begins to fall into question, it could signal the demise of the US Dollar.
I may be 100% wrong and sincerely hope that I am. Do not blindly move to the other side of the ship. Options are a great vehicle if properly used to limit losses.
DISCLAIMER: TRADING FUTURES AND OPTIONS INVOLVE HIGH LEVELS OF RISK AND MAY NOT BE SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR EDUCATIONAL PURPOSES ONLY. NOT A SOLICITATION.