Currency devaluation is a common fear right now, and this is caused by the recent policies and moves of the US Government and the Federal Reserve. Almost all consumers and investors understand that the US dollar is weak right now, and it has dropped in value by around 95% over the last century. What can you do to help protect yourself and your investments against this possibility though?
One strategy that is used by many is the utilization of gold bullion. This precious metal tends to retain wealth and protect capital over the years instead of losing money for the individual. It makes a terrific long term choice, and it has an inverse relationship with this American currency. When the currency drops the bullion tends to rise.
There are some gold stock pros and cons that should also be evaluated. While these may not have the same benefits that owning the actual mineral does they can be included in a portfolio when a diversification strategy is chosen. This means having holdings across as many sectors, asset classes, and vehicles as you possibly can.
Many have started to stockpile precious metals just in case the financial system falls and the currency used becomes worthless as a result. These materials can be used to barter for anything that is needed, and they may be one of the few things left that can be used as a form of money. Those that rely on cash could face serious problems if this scenario does play out.
Each investor will have certain preferences, strategies, and objectives, and these can vary considerably. The right moves and choices in one case may not be the same as those identified in another situation. Make sure that you understand all of the risks involved, and use a strategy that offers the maximum protection in order to hedge against them.