Aftershock: Protect Yourself and Profit In The Next Global Financial Meltdown, Second Edition

If the Rest of the World Is Collapsing, Won’t That Be Good for Gold?

Yes! Gold will especially benefit from the collapse of economies around the globe because it is a favorite safe haven investment for people in Asia and the Middle East. Those countries buy most of the gold in the world. In fact only 10 percent of the world’s total gold is purchased by the United States. India, on the other hand, represents almost 20 percent of the world’s gold demand and will be eager to get its hands on more as insecurity rises. Demand for gold has been exploding in China partly due to fear of inflation. It now represents nearly 20 percent of world gold demand, according to the World Gold Council. So, it is important to view gold from a global perspective and not a U.S. perspective. The rest of the world looks at gold as a very viable and particularly safe investment. People at every economic level often own or want to own gold. It is much more favored culturally around the world than it is in the United States and even Europe.

A $100,000 Toyota Camry?

An important side effect of the dollar bubble collapse is that the price of imported goods will soar. Imported cars, for example, will be priced so high that the United States will no longer buy a significant number. This is the market’s way of restoring trade balance after so many years of imbalanced trade. Some things we will have to import, such as oil, but it will be very expensive. Hence, gasoline prices in the United States will easily reach ...