Gold and precious metals have always been a good hedge against a currency crisis. You cannot eat Gold but you can trade it easily for food etc. But Gold has crashed before and could do so again.
What if Spain or Italy default ? Euro will crash and Germany and France will abandon it. Anybody holding Euros would lose. Anybody who converted their Euros to USD or CHF would be in a good position.
What if you hedged with USD and US defaults ? This could happen and Euro in this instance would soar against USD and your hedge would fail.
What if UK defaulted ? GBP would crash obviously and anybody who hedged with USD would gain massively.
But who can really really predict any of those defaults ?
What if Spain or Italy default ? Euro will crash and Germany and France will abandon it. Anybody holding Euros would lose. Anybody who converted their Euros to USD or CHF would be in a good position.
What if you hedged with USD and US defaults ? This could happen and Euro in this instance would soar against USD and your hedge would fail.
What if UK defaulted ? GBP would crash obviously and anybody who hedged with USD would gain massively.
But who can really really predict any of those defaults ?
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