GOLD 0.51% $1,391.7 gold futures

good read masel.Silly question from me here is this - in case of...

  1. 327 Posts.
    good read masel.

    Silly question from me here is this - in case of an “unforeseen” crisis where the US dollar becomes worthless or there was an unprecedented shift to a new currency. What would happen to your stock holdings?
    a) Your commodity stocks shield you simply by the fact that they would be revalued against the new currency and therefore the holder would retain a certain level of wealth.
    b) Due to some red tape policy stocks would become worthless due to the failing currency they are linked to - which would result in absolute havoc and therefore seems unlikely
    c) Massive devaluation and huge inflation would occur (for example http://en.wikipedia.org/wiki/Zimbabwean_dollar ) your stocks (companies) would then look to do business in a safer currency and hopefully again saving you from the collapse (or not).

    Assuming a) would be the case then it almost seems "safe" to keep your shares during a new currency transition. The US I think is a special case since it’s the reserve currency, any other country would end up like Zimby.

 
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