Will Gold And Silver Replace The Dollar After The Economic Collapse?
The dollar based system had dominated the global trade for decades but with the current economic condition and the instability in the global financial system, questions are arising on whether the dollar will support this very changing monetary system. Many people feel insecure with the current system and in this video, we will look at some of the reasons why the dollar will collapse and a gold based system will take over the global trade and the whole monetary system. Before diving into this, lets first understand what is the collapse of the dollar means.
The collapse of the dollar will happen if the value of the US dollar plummets and those who will be holding dollar-based assets will have to sell them at a very low price. This includes foreign government and investors who own the U.S treasuries. Such a crash can happen if everyone is simultaneously selling dollar based assets and when no one is willing to buy, the price will fall further causing the whole market to panic. If such a crash occurs, the world will shift to assets that are dominated by anything else other than the dollar. Most likely, gold and silver will be the best alternative and this will usher in a new payment system that will be based on gold. This might not happen any time soon but based on the current trend, at one moment it will have to take place.