Welcome to Loyalist Forest Financial Investing!
We provide economic advice for people interested in contrarian investing.
This type of investing means going the opposite direction as most investment advisers are recommending. Some investors who can see the coming economic debacle ahead are going against the grain by investing in non-popular investments.
As most Americans are invested in mutual funds, bonds and IRAs. We are going in the opposite direction and see that most investment vehicles will be effected by the currency currency crisis all over the world. Currently the debt in the U.S. is increasing at astronomical levels. Over the past five years the U.S. debt has increased by over 20 trillion dollars. This increase in debt leads to high inflationary levels never before seen in the U.S. As the debt raises the value of the U.S. dollar becomes less and less. International governments who are worried about the skyrocketing debt are pulling their money from the U.S. dollar and are not supporting Treasury buying as they were in the past. Where does this leave Americans?
If the the debt of the U.S. government moves higher then there will be an exodus from the U.S. dollar by foreign nations. This will cause a rapid run from the currency and the dollar could decline by over 90%. This will cause many people in the U.S. to go to their banks and find that the dollar is not worth anything. This happened in countries such as Argentina, Wiemar Republic and Zimbabwe. So how can a U.S. citizen protect themselves from the currency decline? In this article we will discuss methods to save your life savings.
Methods of Hedging a Currency Depreciation:
1. Investing in international stocks and commodities.
2. Investing in foreign currencies such as the Canadian dollar.
3. Buying Treasuries of foreign nations such as Switzerland.
4. Buying Precious metals.
One method of hedging the dollar collapse is to purchase precious metals such as gold and silver bullion. Since 2001 the charts show gold price and silver prices on a rapid upsurge. This is due to the demand for precious metals as people are wanting to save the value of their savings.
The reason why silver prices could have a huge upsurge is due to the fact that silver is one of the highest conductors of electricity. Silver is used in appliances such as solar panels and cell phones. Many people are purchasing silver bullion coins in apprehension that the U.S. dollar will become worthless eventually.
Oil and Gas Price Investing
According to large investors oil prices and petroleum prices could rise substantially over the coming decade after currency prices decline. Some investors are investing in oil mining and oil companies. They believe that oil prices could surge over $300 a barrel.
Reasons why Gold Prices could Rise over 200%
1. Many people are looking to buy gold bullion due to declining currency. Over many decades gold has been a very steady investment.
2. Gold is utilized in electronics and manufacturing.
3. Banks are allowed to use gold as collateral and has a 0% risk rate.
4. Foreign countries are hoarding gold.
5. Increasing demand compared to lower supply should increase gold price rates as well as silver prices.