The US Dollar is Under Assault: How to Protect Your Wealth

The US Dollar is Under Assault: How to Protect Your Wealth

The US Dollar is under assault.

And we’re not talking about the reckless money printing by the Federal Reserve.

We’re talking about “De-Dollarization” ...

This is the idea that the U.S. dollar is losing its status as the world’s reserve currency over time.

It’s one of the most important investing issues today. And in fact, it’s inescapable.

It affects everyone who holds dollars. It doesn’t matter if you’re heavily invested in stocks, real estate, bonds or cryptocurrencies.

So, we’re going to perform a deep dive on this topic today. We’ll explain what’s happening… and how to protect your wealth from de-dollarization.

But we want to first welcome you to The Discount Weekly. Each week, we pull back the curtain on the biggest issues facing traders and investors… and explain how they impact your portfolios.

Today is all about de-dollarization.

It’s a huge topic… and something less than 1 out of 100 people are prepared for.

You see, Americans have been spoiled. They’ve gotten used to the dollar being the world’s reserve currency. This means other countries need dollars to buy crucial commodities like oil and gold.

That’s kept the dollar strong for decades and maintained America’s high standard of living.

But the dollar’s reign on the top is in jeopardy…

Since the turn of the century, many countries have sought to distance themselves from the dollar.

That’s taken a huge toll, and it’s just the beginning…

In 2001, the U.S. dollar accounted for 73% of global currency reserves. Today, it makes up 58%.

This trend is only accelerating.

In recent years, Brazil, China, India, Saudi Arabia, Malaysia, and many other countries have sought to distance themselves from the dollar.

These are huge economies. So, as you can imagine, this is being felt.

Last year, the dollar’s share of global reserves fell 10 times faster than it has in recent years.

Earlier this year, The United Arab Emirates (UAE) and India began discussions around using rupees - India’s currency - to trade non-oil commodities.

Saudi Arabia is also looking to trade in currencies besides the U.S. dollar for the first time in five decades!

And Brazil and Argentina have also discussed creating a common currency. That would represent a major move away from the U.S. dollar for South America’s largest economies.

Some of our closest allies are even looking to sever ties…

Two weeks ago, French President Emmanuel Macron said he would like to attend the upcoming BRICS summit in South Africa.

This means France could become the first European country to sideline the U.S. dollar for its international trade settlements.

A huge blow to the United States.

We could go on and on listing examples like this. But you get the point.

De-dollarization is in full swing.

Of course, this doesn’t mean that another currency will dethrone the U.S. dollar anytime soon. Instead, we think the dollar’s importance in global trade will slowly get chipped away over the next decade.

The implications of this on the global financial system are massive. And the time to start shielding yourself from “de-dollarization” is right now.  

How to Protect Yourself from De-Dollarization

1. Own Hard Assets.

The first step you should take to protect your wealth from de-dollarization is to accumulate and own hard assets for the long term.

Hard assets like Gold, Silver, and while still unproven long term, the most popular finite digital currency: Bitcoin.

Hard assets have fixed supplies. Unlike the Dollar, Euro, Japanese Yen, or Chinese Yuan, they cannot be created from thin air.

This scarcity makes them extremely valuable in a period of rapidly depreciating paper currencies.

And we like them as long-term holdings for a simple reason..

If and when another currency replaces the dollar, it will still be fiat money… meaning its value can be destroyed by whoever is in charge of it.

The Three Horsemen: Gold, Silver, and Bitcoin.

Let’s start with Gold.

The pound-for-pound wealth protection champion since approx. 3,000 BC...

Yes, BC as in “Before Christ”. That’s how long Gold has withstood the test of time.

It might not make you insanely rich by just purchasing and holding the physical metal outright… but it will surely keep you rich.

And especially in turbulent times.

If America ever entered a hyperinflationary period, if FDIC insurance ever fails, if the government reaches bankruptcy, if we ever get invaded or go to war, and so on and so forth… you’re going to wish you owned some physical gold.

Next up: Silver.

Think of silver as a more volatile gold. Meaning more upside and more downside.

It also has a very similar history to gold in terms of its use as a monetary metal and in jewelry.

By owning physical silver, you capture the same benefits and own it for all the same reasons as physical gold however there are some other advantages:

· Global industrial demand for silver is on the rise i.e. electric vehicles, electronics, more.

· Historic undervaluation relative to Gold (chart above).

In short, like one of my favorite Christmas songs, Silver & Gold go together. If you are going to own one, make sure you own the other.

Finally: Bitcoin

We recommend our subscribers read The Bitcoin Standard in full. It is a comprehensive exploration of Bitcoin and the pseudonymous programmer that introduced "a new electronic cash system that’s fully peer-to-peer, with no trusted third party".

For today’s purposes, let’s keep it simple.

While it’s only been around since 2009 and can very controversial, think of it like this…

Bitcoin is a call option on the future of finance and the global monetary system. And you don’t need much of it to participate and be protected if this technology reaches its full potential.

The beauty of Bitcoin is this: It’s a combination of groundbreaking blockchain technology and great economics.

There is a finite supply of Bitcoin, meaning there are only 21 million available.

You might have heard Bitcoin referred to as “Digital Gold”.

While it still has a lot to prove to hold up to the history of Gold, in short, we agree with this phrase and think that’s the best way to describe it to the average person.

2. Own Defense Stocks

 As former President Dwight Eisenhower once famously said: “Beware of the Military Industrial Complex”.

War is perhaps the most serious business in the world. And Empires do not go down without a fight.

 Don’t be surprised if the United States continues to get more aggressive militarily in the coming years.

 We’re already starting to see this play out in real time. Just look at how involved the U.S. has become in the ongoing Russia-Ukraine conflict.

 Not only that, tensions between the U.S. and China are on the rise. Not something to take lightly.

 This all points to increased military spending, and that’s great news for defense stocks.

 Lockheed Martin (LMT), Raytheon (RTX), and Northrop Grumman Corporation (NOC) could emerge as big winners in the long term, if the U.S. continues to flex its military more.

3. Follow Us for More

We have many more tactical trades for the long, mid and short term that we are monitoring every day and/or already positioned in.

We’ve been consistently capturing 12% and even over 100% gains on our trades.

You can follow along free on YouTube and our Telegram Channel.

Also, we will be launching “The Discount Portfolio” soon. Here you can track all our long term, mid-term, and short-term trades in real-time, with common-sense analysis for each position we take.

A service that anyone, from beginner-to-advanced, can easily understand and take advantage of.

Be sure to subscribe via email, if you haven’t already, to receive the notification when our portfolio service launches.

For now, stay tuned and have a great rest of your weekend!

See You Next Sunday!