Saturday, December 6, 2008

The Dollar Crisis

It seems that many books and articles have been written about the coming demise of the US dollar and the effects it would have on the global economy.

In my journey to financial freedom, I understand that there must be a certain amount set aside hedge against inflation. But what if there is a total collapse of the entire financial system worldwide? What if the US dollar becomes absolutely worthless? How would that affect me and my savings?

If the day was to come when the US dollar becomes totally worthless, I think all countries willl be affected. Everyone will face inflation or hyperinflation and those currencies which are not backed by gold will suffer the most. Of course, this situation is just hypothetical but it could happen in our lifetime.

The best thing one can do is to make sure that a certain amount of money is set aside in Gold - which for the longest time in the history of mankind, has been used as money. Only in recent times have we as nations abandon the gold standard which was replaced by Man's money (easily reprintable and reproducable money).

I am looking for opportunities to invest in Gold.

So far, the only bank in Singapore that sells gold is UOB. I will explore this further in the next posting.

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