…One of the reasons given for allocating a portion of one’s investment assets to the precious metals sector such as physical gold is that gold can be considered as an insurance policy against the devaluation of paper money…so, the question we wrestle with is this: “Would gold really rocket or are there other solutions available should we encounter such a disaster, negating the need for gold?”
Possible Alternative Solutions For A Fiat Currency Collapse
1. The world of the Internet and cryptocurrencies and other such wonderful inventions…may or may not harbor a solution.
2. Possibly governments and central bankers…[could] put their heads together and just move on from the pound, the yen, or the dollar to another form of paper money in a seamless transition…so maybe, in the event of a catastrophe with any particular fiat currency, it could be retired and replaced by a new currency and business would continue to be transacted as per usual.
…If a number of the top six currencies collapsed at once then gold could well be the last man standing and become a fallback position during a period of utter economic and social carnage. However, if one of the top currencies failed then business would quickly move to conduct trade in another currency. This would be an inconvenience but not a disaster…
There are many reasons to invest in gold and its associated stocks, so do it in a positive frame of mind and not for ‘doom and gloom’ reasons, after all it may never happen.
Take good care as these are treacherous waters.