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iShares Silver Trust Message Board

  • brichardseattle brichardseattle Oct 30, 2013 4:06 PM Flag

    What is METALS impact when the reserve currency switch happens?

    The EBCU and Tierra are slated to be the currencies that replace the US dollar as world reserve currency. Gold will be included in the basket of commodities that will back the new reserve currencies. Carbon dioxide will also back these new currencies. MY QUESTION TO YOU IS -- what will happen to gold and also silver prices when the US dollar is replaced by these currencies?

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    • if anything is worth anything measured in dollars and that dollar goes down that anything must therefore go up in that lower valued dollar. the afore mentioned anything did not change in value. the stock market would then I think go up unless criminal entity tried to drive it down. you think or not?

    • you mean when hell freezes over? or world war III whichever comes first?

    • now that I think of it...nothing would happen...imo. Unless you consider the US to define the price of global gold and silver.

      what do you think will happen ?

    • what will be the impact on all investments is a better question ( I don't consider dollars an currency...aside from currency traders, people don't invest in currency)

      • 2 Replies to stumbleoften
      • Everything that you can still buy with dollars will more than double every day until it all stabilizes!
        Imports will shut down which also means like the first statement said everything you can still buy will go away quickly and some stores will quit selling anything for dollars!
        Gas will quadruple overnight!
        If you can still buy it!
        Barter will become the way of life for a while!
        Welfare stops ss stops medicade stops most gov functions will be gone and the depression will look like a trip to Disneyland!
        Look no further than Mexico in the 70's and then look and see where they are today to see where we are heading!
        Ugly will look like a beauty queen in comparison to a currency collapse!
        Understand now?

      • Good point about all, but holding dollars is an investment since there is an opportunity cost of holding something that may depreciated in purchasing power. The biggest impact if dollar is not world reserve currency would be US couldn't just print and borrow at such a low interest rate. 80% of Forex transactions are done in us $ and about 60% of OVerseas reserves are held in $'s. A massive and sudden exit from us $ to other currencies can disrupt world financial markets including exports/imports pricing.
        Biggest loser investment - US Bonds, leading to quick interest rate increases.
        Stocks sell off because liquidity is needed by big boys to execute currency transactions. Also, profits get converted with currency exchanges also and UNCERTAINTY due to situation maycause selling
        Real Estate higher rates may mean lower price or value.
        All the $'s generated from the bond and stock selling now need to go into something more stable as a store of value. You might buy swiss francs or other currencies but like you correctly point out, people don't invest in currency. Higher interest rates lead to higher inflation and lack of trust of other currencies for other debtor nations leads all, people, gov's to silver and gold based on historical value and recognition as worthy for trade purposes.

    • What happened to gold and silver prices in Countries like Argentina where inflation ran wild ? I guess they held the value the rest of the World put on them.

    • What do you think will Happen ? I Know I wont be holding onto to many Dollars / Toilet paper. As for Silver and Gold . Well Since silver is needed MUCH MORE Industrial whys then gold is. This is why I stay buying Silver and not gold. YET. I think EVERYONE Should first figure out what they need to have % Wise in Hard assets just for piece of mind / Protection. Second is to have a plan and stick to it. Figure out financial self worth and go from there. I hear talks or suggestions of 20 % but I myself will probably one day bring that up much higher then that. First off though nobody should be buying with money they will need anytime soon. Dont get caught up making a Gamble.

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