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Nov 30, 2004, 6:39pm

I don't normally post things that are off topic, but this is an
exception. I'm sure that many of you have heard about the declining
value of the United States Dollar (USD) versus other currencies such as
the Euro.

According to http://www.goldmoney.com/en/commentary/2004-11-17.html the
"US Dollar Index closed in New York today at the lowest level since
October 1995. It looks like new lows are on the way."

Unless the US starts to lower (pay off) its debt, things may remain like
this or even get worse. Obviously, this it not a good thing for the US
or the global economy.

With major US companies still sending jobs to foreign countries
(outsourcing) and the recent price increases in oil, things are getting
even more shaky. Some are predicting that an economic collapse similar
to the Great Depression may happen.

So what can the average person do about it? Buy some physical silver or
gold while the prices are still relatively low. If you sell some of your
US Dollars to buy/invest in another currency (such as the Euro), you are
just going to be letting the value of the USD dip further.

Silver and gold were used in the past and are considered to be "real
money." They are very stable investments compared to other volatile
currencies)

Go to http://www.kitco.com/charts/ and take a look at the charts for
gold and silver. Then check out http://www.libertydollar.org and decide
for yourself if investing in some silver and/or gold would be a wise
choice. Since Christmas and other holidays will be coming up, silver or
gold coins would make nice gifts, too.

If you have the time and want to do some further research, please check
out the following links:

http://en.wikipedia.org/wiki/Federal_Reserve
http://en.wikipedia.org/wiki/Inflation
http://en.wikipedia.org/wiki/Hyperinflation
http://en.wikipedia.org/wiki/Recession
http://en.wikipedia.org/wiki/Great_Depression
http://en.wikipedia.org/wiki/Peak_oil
http://www.cmi-gold-silver.com/buy-silver-bullion-coins.html
http://www.cmi-gold-silver.com/buy-gold-bullion-coins.html

-Builderz

Nov 30, 2004, 7:15pm

ya, but me being in the uk, the lower the dollar, the cheaper things i buy
off the itnernet are for me!

-SWE ^_^

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Nov 30, 2004, 7:56pm

http://www.xe.com is a good site for currency conversions.

SWE, for every 1 GBP you spend, you can almost buy 2 USDs. So yes,
buying anything priced in USD will be good for *you* and some people in
other countries (depending upon their currency) at this point in time. I
got some more orders for a product I sell from other countries because
it is more affordable for them. However, it is just the opposite for
Americans buying most foreign goods.

On the other hand, unlike all "paper" or "fiat" currencies, silver and
gold have acted as inflation hedges and have real value. I believe gold
has been used for thousands of years. Unless someone invents a
replicator type device from Star Trek of can use nanotechnology to mass
produce more silver and gold, they are both scare metals and are in
limited supply so their value will most likely only go up from this
point forward.

-Builderz

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Nov 30, 2004, 8:27pm

http://www.xe.com is a good site for currency conversions.

SWE, for every 1 GBP you spend, you can almost buy 2 USDs. So yes,
buying anything priced in USD will be good for *you* and some people in
other countries (depending upon their currency) at this point in time. I
got some more orders for a product I sell from other countries because
it is more affordable for them. However, it is just the opposite for
Americans buying most foreign goods.

On the other hand, unlike all "paper" or "fiat" currencies, silver and
gold have acted as inflation hedges and have real value. I believe gold
has been used for thousands of years. Unless someone invents a
replicator type device from Star Trek or can use nanotechnology to mass
produce more silver and gold, they are both scarce metals and are in
limited supply so their value will most likely only go up from this
point forward.

-Builderz

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Nov 30, 2004, 11:53pm

Random double post, but great report Builderz. Always expected great
stuff from you :P

--

Signed,
TheMask

:: Owner of Delusional-Minds Hosting ::
Free world hosting.. Just a T-Gram will do it.

Dec 1, 2004, 12:20am

ya, british pound ownz! ^_^
just, about the gold thing, to be honest, don't see how it is that good an
investment, unless you're spending awhole lot, and willing to wait a long
time.
it's value has nowhere to go but up, but it goes up slowly O_O

-SWE

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Dec 1, 2004, 12:37am

The thing is, is that if a major currency such as the US Dollar
collapses or needs to be re- or devalued, gold and silver prices will
SKYROCKET! Here is some information from a recent
http://www.libertydollar.org newsletter that explains it a bit better:

"As the once noble German mark continued to sink in value, the price of
silver in marks increased, as silver always does because it represents
'real' value. Do you have any idea, what the price of the same ounce of
silver was as the mark reached zero in 1923? Pause for a moment and
pick out a figure, any figure. 100? Maybe a 1,000? Or even a million?
No, none of these will do. What do you think the price was only four
years later, on November 7, the day when a little guy with a mustache
jumped on a table in a beer hall in Munich and yelled that the
revolution had began? Could an ounce of silver cost more than a million
marks? Impossible, would be a reasonable answer. But these were not
reasonable time. This was pre-Nazi Germany.

It may surprise you then to learn that it cost 543,750,000,000 (543
BILLION, 750 MILLION) marks to buy the same ounce of silver! In four
short years, the price in German marks of silver became all but
impossible. The people simply could not outrun the runaway inflation.
Nor can we! Do you 'think' silver is expensive now? You know nothing
about survival. Unfortunately, we may all find out, all too soon."

So, to summarize: if you buy just an ounce of silver today for about $8
USD and the US Dollar becomes totally worthless in 2005 or 2006, your
once of silver could be worth 10, 20, 100 or even 1000+ times what you
paid for it!

Buy a few silver or gold coins off of eBay or another auction site and
put them away in a safe place just in case something happens to your
country's currency.

-Builderz

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Dec 1, 2004, 2:29am

Problem is... once the currency collapses, the gold could be worth all
the money in that curreny you want (543 billion marks, for example)...
but it does you no good to sell it because a) no one has enough money to
buy it at such an inflated price and 2) even if you do sell it... now
you've got a lot of worthless currency on your hands.

If the dollar were to collapse, you'd be better off just hanging on to
your cold and waiting for the economy to recover. You've got to remember
that even if you sell your gold and become a billionair, the price of
everything else is going to be so inflated too, that your billion
dollars isn't going to get you very far.

*If* however, you sold the gold, and hung on to the money *and* the
currency made some dramatic recovery, your money would be worth a lot
more.... But that'd probably take a while....

You're right though, it probably is a very good idea to invest in
something more 'real' than the stock market. Companies come and go, but
gold/silver isn't going anywhere. If something should indeed happen,
you'd be a lot better off having gold.

-Jeremy

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Dec 1, 2004, 4:35pm

Let me try to explain it another way because I think you are missing
part of my point. If the crap would hit the fan and the USD was
practically worthless, the last thing on my mind would be to use my gold
or silver to buy or exchange it for more USD. You were right when you
said that would do "no good" because no one would have the 543 billion
(or whatever) to buy the silver or gold from me.

The real power comes when you use your silver or gold to barter for
things. Just think of what would happen if the USD really did go belly
up. People would be in the streets rioting like crazy! Do a search for
"Argentina banking crisis" for an idea of what might be in store for
Americans if there were ever to be a collapse of the USD. People lost
their retirement/pensions, bombs were set off at banks, and people
weren't able to withdrawal all of their money out of their own bank
accounts for months at a time.

If you had some silver or gold coins on you, you could barter for
things. Depending on how bad things got, you could at the very least be
able to buy enough food and water for your family -- or maybe even an
entire farm or barn full of animals. Or if there were riots, maybe you
could buy some protection or hire a body guard to have around. Having
physical silver or gold with you is a safe bet that you could at least
buy or barter for the things you need (such as gas, food, water, etc.)
until the economy improved.

Now, even if the USD stays okay, buying some silver or gold is still a
wise investment. Diversifying your investments is the key. Have some of
your money in the stock market, some in a bank earning interest, some in
silver and/or gold, etc. Yes, precious metals go up slowly, but they
hardly ever lose value because there is a limited supply available.

Did you know that most electronics have a small amount of silver in
them? Did you know that China is going to be needing a heck of a lot
more silver in the next few years because they manufacture so much
electronics? IMO, the trend for silver and gold is only going to go way
up. It makes common sense to buy a small amount now. Gold is at a 16
year high! I know that the stock brokers say that you should buy low,
but gold is only going to go up and not down. If you wait, you'll just
have to pay more for it in the future.

Since Gold is around $450 USD an ounce, it is fairly expensive for the
average person to buy. On the other hand, an ounce of silver is under $9
USD per ounce so it makes more sense to buy than gold. Silver is the
"poor man's gold" and will go up just like gold will, but at a lower
pace. The stock market goes up and down all the time and has crashed in
the past. Silver and gold are here to stay and are very safe
investments. You don't have to worry about a "silver Enron" or a "gold
dot com bust" when it comes to precious metals.

So in summary, if there was a financial emergency and you needed food,
shelter, water, gas, etc. that small piece of silver or gold could
really save you. And even if things stay okay, they are expected to only
go up in value. So in 5 or 10 years from now you could sell it for
possibly 4 or more times the price you bought it at. Not a bad deal.

-Builderz

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Dec 1, 2004, 7:24pm

i like the dollar being so low, it means i can get so much more for my
british pounds, which are worth so much more now, :P at how much cheaper aw
will be with the current exchange rate

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