3 ETFs To Hedge Against the Buck

Having trouble viewing this issue? Click here Sign-up! | Whitelist Us | Contact | Site Map Home Editors Archives Reports
3 ETFs To Hedge Against the Buck By Luke Burgess | Tuesday, June 9th, 2009 The value of the US dollar is falling fast. And there are several forces currently at work that will surely continue eating away at the American currency's purchasing power over the next several months. A major fear for dollar bulls right now is China. The Chinese government holds approximately $2 trillion in US dollar assets, which has been accumulated through decades of exports to America and massive purchases of US Treasuries. But because of skyrocketing US debt and government spending, Chinese officials are signaling that the country may loosen its ties to the dollar, and pushing to make the yuan a reserve currency that can rival the greenback. As a result, both Treasuries and the US dollar could weaken considerably. The foremost concern is, however, inflation; or, at the very worst, hyperinflation, where consumer prices can double in a matter of hours. US national public debt in the is currently over $11 trillion... and is growing by about $3 million each minute! The total financial obligation of the United States – including social security and government-sponsored health care systems – is over $70 trillion! To put that figure into perspective, to pay back a debt of this size at $1 million per day would take 191,781 years! Advertisement Multiply Your Money by TEN with Gold The biggest gold rush in history is right around the corner. And it could push gold prices to over $5,000 an ounce! Fortunately, there's a new investment vehicle on the market that doubles the daily profits of gold. And it could turn every dollar invested into TEN! To learn more about this incredible opportunity, click here. America must continue creating new debt money to pay the interest on its current debt. The increase in credit creates more interest debt and subsequent inflation. And with such a massive debt looming over the country, inflation is less speculation and more of a guarantee. How to Profit from a Falling US Dollar There are many different investment vehicles and products that will increase in value of the US dollar crumbles. But shorting the US dollar can get a bit tricky when you get into the more involved investment products. However, there are several products on the market today that are so easy to buy and sell that they could actually be your very first investment. Here are the three of the most popular and easy investments that will profit as the global purchasing power of the US dollar erodes. SPDR Gold Shares [NYSE: GLD] Gold as been accepted as a store of value throughout human history because of its beauty, durability, divisibility, consistency, and rarity. Owning gold is always an asset and can never be considered a liability since there is no future obligation to any entity arising from past transactions or events. This makes gold the ultimate hedge against any fiat currency like the US dollar. The SPDR Gold Shares [NYSE: GLD] is one of the easiest ways for investors to own gold. SPDR Gold Shares is the largest and most popular gold ETF in the world. Its share price reflects one tenth the current spot price of gold bullion. iShares Silver Trust [AMEX: SLV] Silver has also been historically accepted as a precious metal and used as a medium of exchange and store of value for the same reasons as gold. Today, however, silver is used much more frequently for industrial and electronic applications. This means that during economic deflationary periods, silver is less of a monetary metal. However, during times of inflation, silver shines brighter with monetary appeal. iShares Silver Trust [AMEX: SLV] is the largest and most popular silver ETFs on the market today. Its market price reflects the current spot price of silver bullion. PowerShares DB US Dollar Index Bearish Fund [NYSE: UDN] As the value of the US dollar is eaten away by inflation, investors move their cash assets into other currencies. This effectively results in an immediate decline in value. One of the easiest and best ways to short the US dollar directly is with the PowerShares DB US Dollar Index Bearish Fund [NYSE: UDN]. This ETF shorts US Dollar Index, which measures the performance of the US Dollar against a basket of currencies; the euro, Japanese yen, British pound sterling, Canadian dollar, Swedish krona, and Swiss franc. End Thoughts Now more than ever, it is vital to guard your money and investments. Since 2001, the value of the US dollar (as measured by the US Dollar Index) has fallen as much as 42%. And with the massive $70 trillion total financial obligation of the United States, a continued devaluation of the US dollar is imminent as a result of expanding credit and inflation. I urge you to take any necessary steps to prepare yourself against a significant decline in the US dollar. Good Investing, Luke Burgess Managing Editor, Gold World Investment Director, Secret Stock Files Comment on / Rate this Article	Subscribe to our RSS Feed What is an RSS Feed? Related Articles Devaluation of the U.S. Dollar Born Into Debt U.S. National Debt The Effects of Inflation and Debt Are you Ready for Oil's Next Rally? Watching oil prices hover around $50 per barrel, do you really believe prices are heading anywhere but higher? The most important mistake an investor can make is to wait. And when the world economy begins to bounce back from this recession, there are going to be some serious gains to be made in rising oil and gas stocks. In fact, nearly all of these oil and gas investments have made double-digit gains during the last three months... perhaps it's time to check them out for yourself. Find out more about this opportunity. Economic Releases for the week of Monday, June 8th, 2009: Jun 10 - Crude Inventories Jun 11 - Initial Claims Jun 11 - Retail Sale Jun 11 - Business Inventories Jun 12 - Import / Export Prices Jun 12 - Michigan Sentiment Brought to you by Wealth Daily From the Archives... Bearish Trends for this Metal 2009-06-04 - Alex Koyfman Northwestern Mutual Life Insurance Co. Holds $400 Million in Gold 2009-06-02 - Luke Burgess Brazil Draws Foreign Miners While Dissing the Dollar 2009-06-01 - Sam Hopkins Gold Investment Demand Hits Historic High 2009-05-28 - Greg McCoach A Profit Bridge to Somewhere 2009-05-27 - Nick Hodge Cashing in on HR 1's Greatest Asset Nobody hates pork more than I do, but buried within the hundreds of pages in the stimulus package, The Wealth Advisory Team has found an entire industry that's guaranteed to profit from it all - leaving early investors with giant-sized profits! In fact, out of that whopping $787 billion, roughly 10% of it will fall right into the laps of the chemical sector, since it is an industry that literally ties into everything we use all the time. That's $78.7 billion guaranteed - by law - to an industry that has its fingers in literally everything we touch. That has left us on the doorstep of a Stimulus Goldmine that could easily double when all of that pork finds its home! To learn more about this exciting opportunity click here.
You can manage your subscription and get our privacy policy here. Gold World, Copyright © 2009, Angel Publishing LLC, P.O. Box 84905, Phoenix, AZ 85071. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Gold World does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of Angel Publishing may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.