There are many individuals and institutions trying to imply that the US Dollar will simply keep falling until it is worth nothing. However, a good contrarian investor knows that all bear markets come to an end eventually!
Take for example this chart used in an article at Gold Price:
It shows a US Dollar which has been in a bear market for some 100 odd years.
No bear market lasts forever and we can see sharp upticks in the value of the US Dollar several times over the last couple of hundred years, I suspect we will see similar as the public reaffirms their confidence in Government backed Paper Money over the next few years or maybe even decades. This chart shows the value of the Dollar is currently well below long term averages. As more people flock back to Paper Money including the US Dollar it's value will no doubt rise.
Those holding Paper Money can expect their value to increase as the long term bear market turns into an unrelenting bull market. Any other outcome (such as that of rabid precious metal investors suggesting the Dollar will return to a value of $0) seems highly unlikely and in fact implausible if we consider the facts.
As mentioned in an earlier blog post, the cost to extract the metal is far below the spot price, so as the price of gold and silver contracts (reducing the previously discussed "ponzi factor") we can expect capital flows to return to Paper Money, further solidifying it as the money of choice for the majority of the populace.
Yours in Paper Money faith
- Paper Money Shield
There are many individuals and institutions trying to imply that the US Dollar will simply keep falling until it is worth nothing. However, a good contrarian investor knows that all bear markets come to an end eventually! writing services
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