What do you think U.S$ will still go down and gold will up??????????

Question

At this time, U.S economy and currency is passing worst situation...and gold price 645....
euro 1.35, Pound $ 2... Candian 1=1.........

What you think dollar still going down and gold will go up??????Is this possible like 1 euro= 3 U.S $ and 1 pound = 5 U.S.

Answer 1

When America was fighting for independence, the British Pound Sterling was worth hundreds of our current U.S. dollars. Over the long haul, no other currency has ever held up to inflation better than the U.S. dollar.
That being said, until the President, the liberal Supreme Court and Congress get their collective acts together and decide to pay off the debt, our dollar will continue to devalue. Period. Except for becoming radioactive in event of nuclear war, gold will always be worth more than money. It is what our dollar used to be based on (along with silver) but there is not enough gold and silver to support any modern economy.
Best bet: gold will continue going up. As to these other currencies, it depends upon their respective inflation rates and their international trade balances, both of which are very negative for the U.S.
P.S. the Canadian dollar used to be worth $1.25 U.S.

Answer 2

There are plenty of reasons why the dollar is going down.

It all comes back to the notion that the US dollar is NOT backed by gold or silver; It's just a peice of paper. So, being so easy to spend and create, the US government continues to borrow and print more money than it is making.

In March of 2006, the US government stoped publishing the M3 index which shows how many US dollars are in circulation world-wide. This is an important figure for people to determine what the value of the dollar truly is. Now that we don't have it, it's anyones guess, but many experts believe the US is printing between 10 and 15% more money each year... that is a TON! So it's no wonder the US dollar is falling.

The more money you print the less each dollar is going to be worth... you can print an almost infinite (not quite, you but know what I mean) number of dollars on paper. But what is money used for? To buy goods (which are finite resources on this planet) and services. So you can't have an instrument that is infinite being used to buy a finite resource unless the instrument is very stictly regulated and controlled - and right now the US dollar is out of control. China now has more than $1.2 trillion in reserves... It only took decades to get to $1 trillion in US dollar reserves... and in teh last few months alone the Chinese reserves of US dollars has increased over $200 BILLION! They won't hold the US dollar up forever. China has so much power over the US economy - but USA has so much power over China's oil supply (which is the base of any economy) - so they are in a stalemate - looking at each other with caution. Plus, the Chinese don't want to have too many US dollars, especially if the value keeps going down - it's like a losing investment. So they will presure Washington to raise interest rates and take a more conservative approach to the dollar.

BUT, the government's current budget can't change overnight, so things should get worse before they get better. Let's hope the US changes it's path in time to avert a major currency collapse.

Answer 3

It is highly likely the USD will go down a lot more over the coming decades.

Each year more countries are using the Euro and that will increase their price to $2.00 USD or maybe $3.00 USD.

If India, Canada, Australia and other former british colonies use the GBP then it is possible the price will rise to $5.00 USD.

It seems more likely Latin America will start their own super strong currency called Peso and the Middle East will start their own super strong currency too.

Answer 4

I think the dollar will rebound but it will take 2 years or so before it gets better. As far as gold goes, I see it getting higher alogn with all metals to tell you the truth. It sucks but I think it is a solid time to invest in some gold.

Answer 5

It's possible, and my parents bank agent was also saying the same thing gold will go up and the valuse of the US dollar will go down so Canadian and US will be 1-1

Answer 6

Where can I get a crystal ball. I'm professional commodities trader, and I use the charts with indicators to determine when to get in, and out of the market. I don't take wild guesses.

Answer 7

the value of gold stays the same. the way it was explained to me was "in the 1800s, an ounce of gold could buy you a nice suit. and now, that same ounce of gold could still buy you a nice suit" so, moneys value is based on its worth in gold, not other moneys value. it also fluctuates based on the economic state of the country, and the amount of money in circut. so, even though america is in a financial rut, gold is still what it is.