"While there are many financial storm clouds on the horizon, the storm cloud I am watching is the continuing decline of the U.S. dollar. For over 40 years, the U.S. dollar has been the currency of choice of the world. Due to excessive debt, both nationally and as a people, the mighty U.S. dollar will come under even greater attack as the world realizes how weak the dollar is.
Recently, the Prime Minister of Malaysia, Mahathir Mohamad, urged a room full of Saudi Arabians to not sell their oil for dollars. Instead, he urged them to sell oil for gold. He said, 'The price of oil is $33, but the U.S. dollar has declined by 40% against the euro so you’re effectively getting $20…so you’re being short changed.' Now you may understand why Kim and I invested heavily in gold and gold shares seven years ago, when gold was bad news.
While it may be almost too late to invest in gold, because gold at around $400 an ounce is now the good news, there is a lot more bad news ahead. Today, many people are living in dread about the rising price of gas at the pumps. Rather than join them in their fear, I suggest you begin to think about the ripple effect higher gas prices and a weaker dollar will have worldwide. Begin dreaming about a real estate crash or a banking failure due to excess credit. When you can see the opportunity in what other people fear, you will begin to see the brightness and excitement of the future ahead."