Thursday, December 30, 2010

How's the Dollar Doing

How's the Dollar Doing - It seems that the world dominant currency has not been doing so great lately. The value of the dollar depends on a number of things: the treasury notes, the exchange rates and the amount of American money belonging to foreign countries. Considering these numbers and the following facts, we can only conclude that the future does not look so great for the American currency.

The US debt is over 13 trillion, which causes taxes to raise and economic development to slow down. There are voices who claim that the American government wants the dollar to go down in order to diminish the relative value of this enormous debt. The euro zone is also confronted with a lot of issues; but the demand for euro is increasing, as many countries want to join the European Union every year. This is why the US dollar seems to lose the combat with its European counterpart. Likewise, as the US dollar seems to be falling down, investors seem to be afraid of keeping their assets in dollars.

How's the Dollar Doing

In times of deep economical crisis, people all over the world are searching for safe investments, to secure their savings. Instead of trying to strike a profitable deal on the stock market, more and more people want to invest in tangible assets which can offer them stability. The growing inflation and the weakening of the US dollar made the price of gold to reach an all-time high.

The demand for gold is growing, but its quantity is limited; the gold supply already fails to meet the demands coming from individual investors, governments and funds. If you want to make a smart investment in times of recession, think of buying gold sovereigns coins, big bars, e-gold or gold mining stocks. If all else fails, gold can never lose its entire value. It can be stored at home or at the bank, in special vaults.

How's the Dollar Doing

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