Reply to We almost (might have) lost reserve currency status

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. [b]Prepare accordingly.[/b][/quote]

How?[/quote]

Buy gold. Buy bitcoin. Consider foreign stocks. Invest in things whose value isn't linked to the U.S. dollar. [/quote]

Honest question. What does one do with a gold bar?
[/quote]

More common would to be gold bullion coins, issued by the U.S. Mint (e.g., 1 once Gold Eagle). You'd buy it and hold it as a store of value; you could later sell it at a coin shop or online retailer like APMEX for whatever the value is at the time, likely more than today.

The idea is that gold generally holds its value. Today, an American Eagle 1 ounce gold coin is worth about $3,000 (a little more actually). So, to buy a used 2012 Honda Civic today for about $6,000 USD, you'd need the equivalent of two 1 ounce gold coins.

If the dollar rapidly loses value to the point where that 2012 Honda Civic costs $20,000 USD, and if (and it's an "if" because nothing is guaranteed) gold held its current value, gold would be expected to be worth around $10,000 per ounce. But in theory, you could take two gold coins, sell them for $20,000 and then go buy your Civic.

That's what you do with gold -- you hold it as a store of value, and convert it to dollars when you need to spend some of that value.[/quote]

Thanks for the explanation. I appreciate it. Follow up questions - Who is responsible for the valuation of gold? Could "they" just decide it's no longer worth X amount?  What if the entire economic climate crashes, who is going to have the money to buy the gold and how would that benefit them?[/quote]

Who is they?

You're talking every country and person in the world.

The benefit is when currencies and markets crash severely, you use gold and silver to transition into more stable forms of payment.  Been that way for hundreds of years.

By the time everyone is willing to buy it, it's late in the game. Probably won't be able to find it.

As an example, those evil oligarchs in Russia transition into it and out of the ruble in  the late 80s  before things in their country collapsed. [/quote]

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