The Dollar is Going to Zero, Or Is It?

The Dollar is Going to Zero, Or Is It?

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Recently, concerns over the stability of fiat currencies, particularly the US dollar, have been mounting. The traditional backing of currencies by hard assets, such as gold, has been abandoned, leaving them susceptible to inflation and the gradual erosion of their value. This article delves into the reasons behind the dollar’s vulnerability to inflation and explores how saving wealth in precious metals like gold and silver can hedge against the devaluing effect, which occurs over a long period rather than an immediate collapse.

The Abandonment of the Gold Standard and Fiat Currency

Once upon a time, many currencies, including the US dollar, were backed by a tangible asset, typically gold. This system, known as the gold standard, provided stability to currencies by limiting governments’ ability to print money at will. However, in 1971, the United States abandoned the gold standard, making the dollar a fiat currency. Since then, the dollar’s value has relied solely on the trust and confidence of investors and consumers. This move away from the gold standard opened the door for central banks to control the money supply and has led to a significant increase in the amount of money in circulation, ultimately contributing to inflationary pressures.

Inflation and the Erosion of Purchasing Power

With the dollar no longer tied to any hard asset, central banks have been able to create new money without any tangible backing. This practice, known as quantitative easing, has been employed to stimulate the economy during times of crisis. While it may provide short-term relief, the increased money supply inevitably leads to inflation, eroding the dollar’s purchasing power over time. 


It is crucial to note that the devaluation of a currency like the dollar does not happen overnight but occurs gradually over several years, even decades. The result is a decrease in the standard of living for individuals and a reduction in the real value of savings and investments denominated in dollars.

Precious Metals as a Store of Value and Inflation Hedge

Historically, precious metals like gold and silver have held intrinsic value and have been used as a medium of exchange for centuries. Unlike fiat currencies, their supply cannot be increased arbitrarily, making them a valuable hedge against inflation. During periods of economic uncertainty and currency devaluation, investors often turn to gold and silver as safe-haven assets, boosting their demand and value. 


This steady and consistent demand contributes to the gradual appreciation of precious metals over time, making them effective tools for wealth preservation. As a store of value, gold, and silver safeguard against the loss of purchasing power caused by inflation.

Intrinsic Value

One of the key attributes of precious metals is their intrinsic value; unlike fiat currencies, which rely on the trust and confidence of governments and institutions, gold and silver hold inherent worth due to their scarcity, physical properties, and historical uses as a medium of exchange and a store of wealth. This intrinsic value gives precious metals inherent stability and durability as a store of value.

Limited Supply

The supply of precious metals is relatively limited, so they cannot be easily created or replicated like fiat currencies. Their scarcity makes them inherently valuable and resistant to fluctuations caused by changes in supply and demand. The limited supply of precious metals is a buffer against inflation, as their value is not susceptible to the whims of central banks or governments printing more money.

Hedge Against Currency Devaluation

During periods of economic uncertainty and currency devaluation, precious metals tend to appreciate. When fiat currencies lose purchasing power due to inflation or economic instability, investors often turn to gold and silver as a safe-haven assets to protect their wealth. The inverse relationship between precious metals and fiat currencies makes them an effective hedge against the devaluing effects of inflation.

Global Acceptance

Gold and silver are recognized and accepted globally as valuable assets. They are not tied to any specific country or government, making them a universally accepted store of value. This global acceptance ensures that precious metals retain their value and purchasing power across borders and in different economic conditions.

Protection Against Currency Devaluation

As central banks continue to print more money and increase the money supply, the value of fiat currencies like the dollar will likely depreciate further. Holding a portion of one’s wealth in precious metals safeguards against currency devaluation. The value of gold and silver tends to rise during periods of economic instability and currency devaluation, offering investors a reliable means of preserving their wealth. 


The gradual appreciation of precious metals starkly contrasts the prolonged depreciation of fiat currencies, exemplifying their value as a long-term store of wealth. By allocating a portion of one’s investment portfolio to gold and silver, investors can counter the effects of inflation and protect their wealth over time.

Diversification and Portfolio Protection

Including precious metals in an investment portfolio offers diversification, reducing the portfolio’s overall risk. When traditional investments like stocks and bonds suffer during economic downturns, precious metals often move in the opposite direction, counterbalancing and providing a stable asset base. 


This diversification strategy helps mitigate the impact of currency devaluation, ensuring one’s wealth remains relatively intact even during prolonged economic turbulence. Moreover, diversification helps spread risk and enhances the portfolio’s resilience against unexpected market fluctuations.

Long-Term Wealth Preservation

One of the key advantages of investing in precious metals is their ability to preserve wealth over the long term. Historical data shows that while fiat currencies have come and gone, the value of gold and silver has endured over centuries. This stability makes them a preferred choice for individuals looking to protect their wealth for future generations. 


The gradual appreciation of precious metals provides a reliable and enduring way to maintain purchasing power and financial security over extended periods. For investors seeking long-term wealth preservation, a strategic allocation to gold and silver can act as a reliable hedge against the inflationary pressures that threaten the value of fiat currencies.


The dollar’s departure from the gold standard has exposed it to inflation risk and a loss of value over time. In such uncertain economic conditions, saving wealth in precious metals like gold and silver is a prudent strategy to safeguard against the devaluing effect of fiat currencies. 


The intrinsic value, scarcity, and historical stability of precious metals make them a reliable hedge against economic instability, and their gradual appreciation over time ensures long-term wealth preservation for investors seeking financial security. By understanding the impact of inflation on fiat currencies and utilizing gold and silver as inflation hedges, individuals can take proactive steps to protect their wealth and financial well-being in an ever-changing economic landscape.


So you have decided to buy silver online.

Great choice. Let’s talk about silver.

Silver is exceptionally popular today. Part of the reason for this is the belief that it’s potential for upside value increase is even greater than the same belief in gold. In fact, there is a very good book on this subject entitled: “ Why Silver Will Outperform Gold by 400% in the coming years”. It’s a very scholarly book and quite convincing. Give it a read if you have the time.

Silver Bullion Prices

Mind you, one need not look as far as that book to find evidence of the common belief that silver has great potential for growth in the near future. All one has to do is go to the web or even Youtube and there are advocates of this thought at every turn.

At Durham Precious Metals we believe that silver is an easy choice because it gives a sense of substance due to its lower cost per ounce than gold.

Silver Bullion

Probably 90% of our business is silver sales so this sentiment is fairly unanimous throughout the public. 10oz bars seem to be the most popular. Generic rounds and Silver Maples seem to be the next most popular and 1oz bars a close 4th place. It is our opinion that 10 oz bars and 1oz rounds are your best value as their premium over spot is very reasonable. However, there is no wrong choice when it comes to our silver product line because we try to concentrate on product lines with low premiums anyway.

Silver has always been a form of money. There are those that will argue that silver has been demonetized but we beg to differ. All one has to do is refer to the (CCRA) definition for 999 bullion. It is deemed by Rev Can to be a “ financial instrument”. Enough said on that subject!

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From a utility standpoint, silver has somewhere in the neighbourhood of 60,000 industrial uses including painting the backs of mirrors to create the reflective surface to collecting radiation in solar panels. If nothing else, the lack of an above ground supply of silver ( which is relatively new historically) will keep the demand for this metal strong since for most applications there is no viable substitute.

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Can you imagine the mayhem that would ensue if all the major electronic manufacturers came grinding to a halt due to a silver shortage? It would be catastrophic to the economy. We believe that this fact alone will be a major driver of support for the silver price when the powers that be run out of tricks in their attempt to suppress the price of silver. And yes, we agree that this practice goes on in plain sight and that the regulators turn a blind eye. Let’s hope justice prevails and that the historic silver/gold ratio returns to its traditional level.

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In the meantime…keep stacking!

So you have decided to buy gold online.

Great choice! Let’s talk about gold then, shall we?

Gold is, and always has been, a favorite of collectors of precious metals. Its 6000-year history of sustaining wealth is unprecedented. The yellow metal has launched wars, bought fortunes and has been a form of money throughout that history. It is one of the densest metals and also one of the densest elements on the periodic table. It weighs in at a density of 19.32 grams per cubic centimeter. Water, by contrast, has a density of 1 gram per cubic centimeter.

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Platinum is the densest of the common 4 precious metals at 21.45 grams per cubic centimeter.

People will often ask when gold is the right choice to buy as opposed to other metals such as silver. This is a very common question. There is no easy answer that anyone can give to someone so we always boil it down to practical applications.

Gold Bullion

Consider how much of an investment you are planning to make over-all throughout the course of your precious metals buying.  If you are planning on purchasing, for example, $10,000 worth of metals and then cap your spending then it really doesn’t matter which metals you buy. The volume of the purchase will be relatively small in terms of weight and size. Our main concern and Durham Precious Metals comes down to simple things like , cost of storage, cost of shipping and bulk. We are always trying to help our customers have the best experience as metals collectors.

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For example, if you were to tell us that you are considering selling a piece of real estate and use the proceeds to buy metals then gold would be our suggestion. The reason comes down to volume and weight at this point. Several hundred thousand dollars of silver would be an incredible amount of bulk at this spend level. Hundreds of pounds of silver would be hard to store practically and would be more expensive to store as well. If you are the DIY type it would also be harder to hide than a comparable dollar amount of gold.

Keep in mind that at the time of this writing gold is about 75 times more expensive in dollar terms as the same weight of silver. That equates to 75 times less bulk per dollar spend. This will make it much easier to hide or store if you are looking at large purchase amounts.

Price of Gold?

If you are only considering a small total purchase amount either of the metals is perfectly fine. The one consideration we always emphasize for small purchase amounts really comes down to personal perception. Here is what we mean. Silver is 75 times more bulky per dollar spend. Obviously, it is going to feel a lot more substantial if you buy $5000 worth of silver and have several hundred ounces to admire than only about 3 ounces. It’s a perception thing at this point but perception matters to people since perception can make us feel a particular way about what we spend our money on.

In closing, gold and silver are both great choices and neither is wrong in terms of their value of utility. They have both had a long history as a store of wealth and that isn’t likely to change any time soon.

Buy both with confidence. Buy Gold Online

We often carry pieces that we don’t list on site so feel free to call us for an up-to-date list.

About DPM

When you consider silver value and gold value, the wise choice is to stock up today. At Durham Precious Metals we make it easy and convenient to buy silver and buy gold online.

For those who are serious about investing in gold and silver bullion, DPM is your one-stop store to buy gold and buy silver, whether it be through our website or our retail store.

Many people want to know where to buy gold and do not realize they can avoid the traffic hassle of driving into the city and visit us at DPM located in Oshawa, Ontario. See our Retail Store page for directions. Our customers are delighted with our competitive silver price. We carry mint direct silver bars, silver coins, gold bars and gold coins.

Make Durham Precious Metals your choice for gold and silver bullion.

Consider a Gold IRA as well