President Obama and members of his administration have been quite vocal lately about admonishing the European Union to resolve its fiscal, economic and financial crisis.
Solving the crisis is, of course, much easier said than done.
In the early stages of the crisis, investors and traders alike have vacated the euro in favor of the dollar. But today Germany’s finance minister rebuked President Obama’s public advice for the Europeans by admonishing the president to quit worrying about offering advice to Germany and the rest of Europe and start concentrating on solving America’s fiscal problems.
The German has a point and this very issue is why the dollar cannot be a safe haven for a collapse of the euro over the long-term.
Europe certainly has fiscal woes, but America’s national debt and ongoing annual deficits dwarf those of the European Union nations. Moreover, that national debt is the very reason why the dollar cannot sustain strength beyond the very short-term.
As a result, investors must diversify into assets that have historically been negatively correlated with the US dollar. Gold is just such an asset. Historically, when the dollar has been weak, gold has usually been strong.
But there are many different ways to invest in gold. For a complete explanation of all the available options, contact Coin Trader today.