For the past few months I've been listening to brokers and others write about the collapse of the US dollar, and I'm here to tell you why it will not happen overnight. You see, even though the US has been printing trillions of dollars during the Obama administration, other countries including the EU, Japan, Russia, and yes even China, have also been running up their via the printing of money.
In other words it's almost tit-for-tat as far as printing money goes. I specify almost because the United States Treasury has been printing more than the other mentioned countries. The disparity between the currency exchanges should be negligible.
Although at some point in the future the United States dollar will lose its strength and then, and only then, will silver and gold begin appreciating again. But for right now, silver and gold are both overpriced, and that is why both have been depreciating this past year (2013). I expect that despite the recent small spikes in both gold and silver, that they are still both in a downtrend.
In the short term I expect both to remain in that downtrend. However, in the long term, meaning 6 to 12 months from now, both gold and silver will turn around and begin to rise again.
This prognostication is applicable as long as the US Congress holds the line on any further rising increases. The next vote on that should be sometime in March of 2014.
I believe that all the commentary regarding the collapse of the US dollar is for the sole purpose of making brokers richer. I only say this because in all the reports that I read, I never see anyone talking about the other countries involved, who are also printing money to bolster their economies.
When this one factor is taken into consideration, any economist worth his salt would recognize that it at least partly offsets any printing by the US Treasury. Their failure to do so only deepens my distrust of all those who are reporting the untimely demise of the US dollar. Only time will tell.
When that time does come, gold and silver will have higher value, but so will everything else including collectible coins, works of art, cars, houses, and even baseball cards. You remember the last time baseball cards went up in price, do not you? Just in case you do not, let me remind you. It was in the late 70s, and they peaked in the early 80s. Now if you think back to that era, what was happening in our economy? The dollar was down and gold and silver, as well as works of art etc., were all appreciating in value.
So the smart money should not only be watching the US dollar, but how the rest of the world is managing their finances.