How to Profit From the Economic Collapse in 2012

The United States’ economy is about to collapse and it will by the end of 2012. The dot-com bubble burst in the year 2000, the housing bubble burst in 2007, and soon the dollar bubble will burst. At first it was the stock market crash, then the real estate market crash, and soon it will be the bond market crashing. Why do I think this will be the case? Just look at the U.S. deficits including the trade deficit, budget deficit, and leadership deficit. It’s in the trillions and growing by billions a year. The dollar no longer is backed up by gold and is virtually worthless, since it’s just a piece of paper printed by the Federal Reserve.

The government stimulus and the bailouts caused the Federal Reserve to print out trillions of dollars since the year 2007. The Chinese and Japanese have stated that they will trade without using the U.S. Dollar just a few days ago. They will also soon no longer accept the Dollar, since it gets devalued so much and so quickly. However, this article is not about explaining the crash, but how to profit from it. If you want to learn more about the crash then look up Peter Schiff or Ron Paul in YouTube. Some videos will be posted at the bottom of this article as well.

Here’s a few ways to profit from the collapse of the U.S. Dollar/Economy:

Save in Gold/Silver

I would convert at least 10-20% of my wealth to gold and silver because they are the real and free market determined currency/money for thousands of years in human history. Why does gold/silver have value? How does something have value? There are basically 3 reasons. It’s because it has uses, its attractiveness, and it is scarce (rare or limited). Where would be good places to buy it? Well, I recommend owning at your home just in case you have to buy goods where people only accept gold/silver. You can go to real stores and buy the gold/silver bullion in 1 oz, 1 kg, etc. But you can also buy it online and either have them keep it there for you in their vault or have them ship it to you. Some trustworthy places are: bullionvault.com, goldmoney.com, and perthmint.com/au. At BullionVault you buy and sell to other people in the market. The commissions are only 0.4% and the annual vault fee is 0.12%. Gold will go up at least 10% a year for the next decade, so you don’t have to worry about the vault fee. In GoldMoney you buy it from the company and sell it back to the company. You can use the gold/silver to pay other people electronically. The PerthMint is owned by the Western Australian government and is the safest place to store your gold/silver.

Invest in Mining Stocks

This is the same reasons as buying gold/silver, but it’s more for long-term VS mid-term when you buy the physical gold/silver. Some good stocks at the top of my head are: ABX, GG, GLD, PAAS, SWL, SVM, and AUY.

Buy Land to Farm for Food

Why would you want to buy land to grow and raise food? Because when the Dollar crashes, food prices will soar through the roof due to hyperinflation. If you can grow and raise food, you’ll be able to afford to feed your family and sell it at a nice price with the extras, making lots of profits.

Invest in Agricultural Stocks

This is the same reasons as buying land to farm for food. But if you don’t know how to farm, don’t want to, or can’t afford to, then I suggest you invest in some agricultural stocks. Here’s a few good ones (ticker symbols) at the top of my head: CAT, CALM, FDP, POT, MOS, and AGU. You can study more on them at finance.yahoo.com or finance.google.com or marketwatch.com.

Invest in Energy Stocks

Oil and gas will soar when the Dollar crashes as a result of printing too much money by the Federal Reserve. Hyperinflation will make gas go from $3 to $30 in 2014. I would strongly suggest investing in a few energy stocks including, but not limited to: CVX, XOM, COP, PBR, PTR, and RSD.

Invest in Foreign Stocks

As the Dollar crashes, the other countries’ currencies will most likely be stronger than our currency. This is why I would suggest you invest abroad in a few stocks. You can buy PTR, PBR, AMX, TMX, AUY, TM, and HMC. I would look up into Chinese stocks, Canadian mining stocks, Australian mining stocks, and Brazilian oil stocks.