The best speculator we know...Goldsmith comment: I'm out of the office this week. So in lieu of our regular Digest fodder, we're running an excerpt from a special report written by Chris Weber. Chris is one of the best macroeconomic trend forecasters we've ever met. He's never been wrong about a major market call. Chris is especially good at predicting currency and precious metal trends, which is why today's Digest is so important.
Chris agrees the dollar will lose its place as the world's reserve currency. But that doesn't mean you shouldn't be buying certain global currencies. In fact, Chris has used a proprietary currency trading system to produce huge returns throughout his career – thousands of percent. And it's simple... It only involves one trade per year.
Read on to learn more about Chris' system... and why you should still be buying gold and silver...
After several decades of traveling the globe, living in dozens of countries, and studying the international monetary system, what have I learned? Well, for one thing I've realized that diversifying your money outside the U.S. dollar is one of the smartest decisions you can make.
For too many American investors, the thought of diversifying out of the dollar seems "Un-American" and reeks of treason. But the reality is, if you don't diversify out of the dollar – and soon – the real betrayal will be against your family and heirs.
Understand, there is no law – nor has there ever been one – that prevents you from owning British pounds, euros, or Swiss francs.
Why would you want to own a foreign currency? Simple. Some of them have very high interest rates. Traditionally, high interest rates on a currency often means that something is rotten in that country's economy.
But believe me, this is not always the case.
Sometimes you can get high interest rates in the currency of a country that is turning its economy around and whose currency is firming and about to rise.
I started diversifying outside the U.S. dollar back in 1971... I took $10,000 out of my savings and converted the money into German marks. A year later, I converted the money back into U.S. dollars and made a 10% profit.
Every year since, I've continued to invest this same pile of money into a safe but high interest-bearing currency. By doing this, I have turned my initial $10,000 stake into $688,691. That's an increase of 6,787%.
Now, in terms of the BIG macroeconomic trend, my faith in paper currencies continues to wane... especially since the world's reserve currency – the U.S. dollar – is on its way out.
Understand, we as Americans are about to see a major, major collapse in our national monetary system and our normal way of life.
Our government has borrowed such a huge amount of money that we will no longer be able to even afford the interest on the loans we've taken out. Of course, you may take a look at our economy and think otherwise. The stock market has had a great year, and unemployment rates have stabilized.
But understand, even if all Americans gave away 100% of their income right now it would still not be enough to balance the federal budget! We'd still have to borrow money just to maintain the status quo.
Yes, the U.S. dollar is still "the world's reserve currency." And yes, because of this we are privileged as being the only country in the world that can pay for imported goods with our own money.
If you're the Canadian government, for example, and you wanted to buy coal from China, you can't use Canadian dollars to pay for it. You have to buy U.S. dollars first, and then buy your coal.
But in America, we can consume as much as we want without worrying about acquiring the money to pay for it, because our dollars are accepted everywhere and by everyone.
This is why we haven't had to produce or export anything to get all the dollars we needed to buy the goods our country required. All we had to do was borrow the money. And now the U.S. government is in more debt than any other nation in the world.
What are we doing to repay our debts? You guessed it… We're printing more money.
I believe this will eventually anger our creditors, who in turn will stop accepting the U.S. dollar.
And that will make all of our imports vastly more expensive. From gas and oil, to clothing and food, you can expect everyday items to get way more costly in the near future...
As soon as other countries start preferring payments in something besides U.S. dollars, the value of our currency will sink.
So what can you do to safeguard your wealth, before it's too late?
Buy gold and silver.
Regards,
Chris Weber
Editor's note: In addition to gold and silver, Chris also likes high-yield currencies. As you read, he's earned nearly 7,000% returns using his currency trading system over the years. To learn what global currency Chris recommends you buy today, click here...