Before The US Dollar Collapses, Where Can You Invest?

Nobody wants to think about the possibility of living through an economic collapse in the near future, but preparing for the worst can help you weather most financial storms. For some, this means learning how to cultivate and grow your own food, but for others, investing in precious metals, other currencies, and valuable goods is key to surviving a U.S. dollar collapse. 

But with so many options currently available to investors, which should you be eyeing to cushion against dollar drops? The answer is more straightforward than you think. Keep reading to learn more about building a safety net for you and your family in case of a U.S. dollar collapse.

1. Gold And Other Precious Metals 

Gold

The term “gold standard” isn’t just a fanciful expression used by investors. It refers to how gold is a safe way to maintain value and purchasing power despite inflation and other investments failing. This isn’t just hearsay, either – many central banks have sponsored studies providing statistically-backed evidence that gold can cushion the financial impact of high inflation and a potential U.S. dollar collapse.

This price stability is possible through many factors, but it mostly boils down to two reasons. Namely, the growing demand for gold despite waning supply and its relative absence within industrial contexts. The shiny yellow metal also manages to hold its value despite political issues with and among other countries, which provides a bit of relief during times of geopolitical upheaval.

As a result, many investors are drawn to investing in gold versus other precious metals.

Silver

While gold may be one of the most stable investments you can make if the U.S. dollar plummets, you can still leverage most commodities to maintain value. Silver is one of the most popular options. 

That said, there are a few caveats to investing in this precious metal. Specifically, its price instability. Unlike gold, which mainly acts as an alternative store of money, silver is both an alternative currency and essential material for many industries.

Investors should be aware that the price of silver tends to fluctuate more often and is susceptible to influence during times of economic uncertainty. Moreover, because many industries demand silver outside of investments, its price is not nearly as stable. That said, it can still be used to hedge against U.S dollar collapses, albeit to a lesser degree. See our article on IRA approved silver.

Platinum

Like silver, platinum is an industrial metal traded throughout the world. However, its unstable asset prices make it one of the most volatile precious metals for investing to protect against inflation. 

Where does this instability come from? The answer is that platinum’s value is determined by many moving parts, such as the demand from automotive industries and the development of clean air catalysts. As a result, it can be challenging to determine how asset prices rise, especially when legislation in other nations and the United States equally affects the demand for clean air catalysts. 

Moreover, platinum is more susceptible to the laws of supply and demand than both silver and gold. That means the price of this commodity rises as supply dwindles, which should be expected when investing in this precious metal as it can only be sourced from two countries: Russia and South Africa.

Platinum, two metal web buttons

2. Foreign Stocks And Bonds

While the US dollar remains highly valuable as far as fiat currency goes, there are still many ways to broaden your investment portfolio to protect against inflation. One of the most accessible avenues for most investors is to funnel a little bit of money into a foreign stock market.

With that said, there are some risks involving investments in foreign companies. Specifically, neophyte investors might misunderstand key legislation by foreign governments that may impact the value of their dollars. However, most of these risks can be curtailed with proper research.

Here are the two ways you can invest in a foreign stock market if the dollar falls.

Foreign Stocks And Bonds In Emerging Markets

While investing in emerging markets may be riskier than putting money into developed nations, a US dollar investor can still make huge gains if the greenback value tanks. That’s because many foreign companies in developing countries deal in commodities and raw materials like food and natural gas. 

As a result, investing in these businesses can be likened to building commodities-based funds, which are highly valuable when hedging against a falling dollar. Alternatively, investing in foreign bonds can also be an excellent option for portfolio diversification and spreading risk.

Foreign Stocks And Bonds In Developed Markets

Stocks from foreign nations use their native currencies, meaning US dollar investors have much to gain when buying into foreign exporters and companies. That’s because foreign currencies and treasury securities remain relatively stable even if the US dollar collapses. 

Moreover, investing in developed foreign nations all over the world can help you make and maintain more money without being entirely dialled in to local tech news. Unlike the United States, most foreign countries don’t revolve around tech giants, which tend to rise and fall with public opinion.

3. Foreign Currency

If the dollar collapsed, one of the first things many folks would do is invest in foreign currencies. That’s because spreading your money across the world would also disperse the risk of losing dollars during fluctuating interest rates and dropping values, providing an adequate financial safety net.

But which currencies should you invest in? Here are five excellent options for maintaining the value of your dollars. 

European Euro (EUR)

The Euro is primarily managed by the European Central Bank or ECB, ensuring that the five largest economies are always represented. As a result, this currency is slower moving than US dollars, making it an excellent vehicle for protecting the value of your dollar.

Furthermore, the Euro shares no correlation with the price of US dollars, so it remains relatively stable in times of currency uncertainty.

Japanese Yen (JPY)

Japan is known for being the world’s biggest creditor, made possible by how stable the local currency is. As a result, JPY is one of the most highly traded currencies in the international banking system. Beyond its stability, JPY has relatively low interest rates and is cheap to purchase and trade.

British Pound (GBP)

The British pound is managed by the Bank of England, the English analogue to the US Federal Reserve. Because most financial policies and decisions are made in-house, this currency can be more volatile than the Euro. That said, it’s still a powerful tool when hedging the US dollar. 

Swiss Franc (CHF)

This unique currency is considered one of the most stable and “neutral” because the Swiss National Bank’s governing body comprises both public and private owners. In short, the Swiss Bank operates similarly to a traditional corporation, with its small board making the vast majority of financial decisions.

Like the Euro, the Swiss franc is a slow-moving currency, making it an excellent option for maintaining the value of your dollar.

4. Ethereum, Bitcoin, And Other Cryptocurrencies

Many investors immediately turn to in-demand commodities, fiat money, and foreign bonds when attempting to salvage their dollar’s value. However, there are other options for individuals who are more comfortable with technology, like cryptocurrency.

Over the last few years, many investors have considered Bitcoin and Ethereum “digital gold”, and for good reason. Crypto isn’t tied to any fiat currency, which means your dollar could survive a potential crash without being impacted by real-world political unrest.

That said, there are hundreds of cryptocurrencies currently available for purchase. However, not all are worth your money – some may even be a scam. Here’s a quick rundown of the best crypto options.

Ethereum

While newer than Bitcoin, Ethereum has quickly shot up in popularity and tradability in the last few years. As a result, it’s worth much more than a few short years ago. This is mainly because NFTs (non-fungible tokens) are linked to Ethereum, and this specific currency also allows developers to build apps to facilitate trade and everyday use.

However, like all cryptocurrencies, Ethereum can be volatile. So, instead of going all-in on Ethereum, it may be better to diversify.

Bitcoin

Bitcoin is one of the market’s biggest (and oldest) cryptocurrencies. At its peak, Bitcoin was worth $68,000, eventually to a more modest $35,000. Today, it remains the most valuable cryptocurrency in terms of the coin-to-dollar ratio, but it is still incredibly volatile and may be too risky for conservative investors.

Other Cryptocurrencies And Digital Assets

Many young tech startups have joined the fray and developed their own cryptocurrencies to make the most of their dollar. However, many of these projects won’t take off like Ethereum or Bitcoin did. We recommend against investing in upcoming coins and tokens unless you have a working understanding of cryptocurrency in general.

5. Real Estate Assets That Generate Revenue

Real estate and land are extremely valuable tools for shielding against dollar devaluation. Here are a few reasons why:

  1. It will always be worth something: Land can’t be created and destroyed overnight, unlike paper money, stocks, and bonds. That means it will retain or even increase in value over time, especially if the demand for real estate grows in a specific area.
  2. Generally moves with inflation: Unlike the dollar, the valuation of your land will increase as prices do. This is doubly true if you’re renting out a property to commercial or residential clients since rent increases alongside inflation.
  3. Potential tax benefits: People who own commercial spaces and investment properties may be entitled to tax benefits based on yearly operating costs. 

Final Thoughts About Playing The Falling Dollar

While it’s improbable that the US dollar will collapse anytime soon, it’s essential to understand your options. From investing in foreign economies and currencies to pouring your hard-earned money into digital coins and cryptocurrencies, there’s no shortage of ways to protect your wealth. 

Now that you’re aware of the possibilities, it’s time to do something with this knowledge.

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Peter Grantham

Peter has been an avid investor in for all his life. Over that time he has accumulated a wealth of knowledge and experience including stocks, bonds, real estate, retirement, precious metals, cryptocurrencies and business investments. You can get in touch at my email: info@mygoldsilverbitcoin.com As the owner of this site "My Gold Silver Bitcoin", he aims to bring his knowledge and experience to new investors and seasoned veterans. My mailing address is: 41847 Moen Grove, Greenton, Arkansas, 80976

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