Commodities, real estate, and interest rate products:
Month | Dollar Index |
Dec 00 | 104.65 |
Dec 01 | 109.51 |
Dec 02 | 101.48 |
Dec 03 | 86.21 |
Dec 04 | 80.10 |
Dec 05 | 85.65 |
Dec 06 | 80.89 |
Dec 07 | 73.69 |
Dec 08 | 80.69 |
Jul 08 | 70.91 |
Aug 08 | 74.09 |
Sep 08 | 75.51 |
Oct 08 | 80.39 |
Nov 08 | 82.74 |
Dec 08 | 80.69 |
Jan 09 | 81.01 |
Feb 09 | 83.11 |
As interest rates increase it could trigger a debt bubble collapse. Whether its corporations, municipal or national government debt some players in the game may find themselves overextended and unable to pay.So while there are people that always scream buy gold or silver whether the economy is on the cusp of a crisis or not (these are the folks that make their money by selling silver and gold coins) if there is a severe long-term crisis large quantities of gold and silver coins arent practical. Theres no formally established and tested medium of retail/consumer exchange. Id rather have access to clean water. Your bartering skills will be what matters and your time can be exchanged for goods, for example in the Community Oriented Mutual Economy which makes sense to have on offer in a community regardless of times of prosperity or gloom. Last October a family member spoke of the gold coins he purchased. He had to buy a safe and then had to have it installed. Considering the overhead its tough to come out ahead financially. Fortunately the price of gold rose significantly since he made his purchase but hes not planning to sell the coins, he wants to pass it on to his children. I commented that his children would sell them his wife smiled, she wasnt a supporter of buying the coins.But why worry about the economy entering despair? There is a built-in safety net rich people still want to protect their wealth so the system wont evaporate, itll trudge along so the rich people can maintain their relative affluence.