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“It’s not that I am particularly interested in the history of the U.S. dollar and it’s role over the years. But I am particularly interested in the future purchasing power of our present holdings in phyzz and in PM-related equities. My outlook for the future of these holdings involves expectations that reverse back and forth between a hopeful future and a grim one.
My current viewpoint in this wavering cycle is one of strong optimism that global forces, involving especially Russia and China’s attitudes and actions towards precious metals, will determine the global role of the U.S. dollar, and that if we can hold on to our present PM-related holdings then these assets are going to have acceptable purchasing power in the future rather than holding these assets in fiat form. ”
Comment:
Thanks for the comeback, well said and all makes sense. Gold, physical is a no brainer, no matter what happens in the future. If the system ever evolved back to a global gold standard, like the 1492 to 1913 era, the old Federal Reserve Notes would have to be exchanged for the new US gold backed U.S. Dollars. The Fed Notes would lose a lot of value.
For example, with gold at $1,200 and a Gold Eagle at $50, the exchange rate today would be 24 Fed Notes for each new Gold backed U.S. Dollar.
P.S. I was too generous above. In reality with all the excess Fed Note money created, and if a rush to exchange unfolds, the exchange could go $3,000 to $5000/oz in Fed Notes in exchange for each Gold Dollar.