The dollar index is a measure of the value of the U.S. Dollar versus a basket of other currencies. When the index is rising, the dollar is appreciating. When the index is declining, the dollar is depreciating.
The dollar index is currently near a key previous low that, if breached, could potentially see a significant leg lower in the dollar’s value.
That’s right. The greenback is precariously close to seeing what could be a significant decline against a basket of other currencies.
And guess what. As the dollar falls, so does your purchasing power!
After retracing much of the declines seen in the early 2000’s into 2008, the dollar appears to be rolling over again and could potentially return to 2008 levels or even lower.
If the dollar starts down this slippery slope, there is no telling just how much the currency could possibly fall.
And every step lower reduces the purchasing power of each and every dollar that is in your wallet or bank account.
Not only that, but a declining dollar could also potentially take a bite out of your investments as well. Consider this: As the value of the dollar declines, real returns may also potentially decrease. That is to say that with every dollar buying less and less, returns have to be higher to keep up with inflation. Put another way; you may see decent or even good returns, but you may still potentially lose ground as goods and services become relatively more expensive.
While no one can see the future, changes in interest rate expectations in the U.S. along with other factors could possibly drive the dollar lower.
Is your portfolio prepared?
Many investors do not hold any assets that may potentially increase in value during a dollar decline and have the potential to protect wealth and purchasing power.
If the answer is “no,” then it might be time to consider adding an allocation in these assets. It might be time to consider adding physical gold, silver or other precious metals to your portfolio.
Physical gold and silver have been considered a reliable store of value and protector of wealth for centuries. These hard assets are traded in dollars and often exhibit an inverse correlation to the dollar.
In other words, when the dollar rises, gold and silver may decline. On the other hand, when the dollar declines, gold and silver may potentially rise in value.
Wouldn’t it make sense to own some of these physical precious metals as part of your overall investment strategy?
Gold and silver prices are already on the rise and could potentially see significant price appreciation in the months and years ahead.
Wouldn’t it make sense to buy these assets at current levels? Would you rather buy gold and silver when they are less expensive or more expensive?
Let us show you how…
Adding an allocation in physical gold and silver has never been easier than it is today. In fact, your existing IRA account may be the ideal vehicle for acquiring and holding these precious metals. While we believe a significant dollar decline could be seen in the near future, there are numerous other reasons to own these assets as part of your overall portfolio.
Speak with an Advantage Gold account executive about your options. Learn the potential benefits of physical gold and silver ownership, and how such investments may potentially fit into your long-term strategy. Don’t wait for further declines in the dollar and more erosion of your purchasing power. Call us today at 1-800-341-8584.Tags: advantage gold, buy gold, dollar collapse, dollar decline, gold, silver