Is a basket of phony currencies somehow less phony than any of them by itself?
No – but…. They move against each other, and unless someone is brave enough to put all their eggs in one basket and go 100% gold and silver (along with rooms of toilet paper, cigarettes, etc., for barter), most people will still have some cash – be it under-the-mattress paper stuff, or digital cash. To simply keep holding $US long term is likely to pay the same dividends as the the currency in Zimbabwe. But if anyone besides me has been watching the Canadian and Australian dollars lately, they know that both currencies have been absolutely hammered against the $US. However, that’s beginning to ease off (just a bit so far). Both are still very mining-dependent, due to so much of their economies being dependent on mining resources, and mining stocks have been hammered by the recent drops in gold and silver prices. The Norwegian Krone is heavily influenced by oil (so it, too, is way down right now). Some believe (including but not limited to that Trader21 fellow) that those currencies will recover VERY nicely against the $US if/when the dollar takes a dive again (it’s been absurdly high recently). So a combination of gold/silver stocks, along with certain select currencies, could – IN THE SHORTER TERM – be a hedge. Long term? You’re absolutely correct – one fake currency is no better than the next – people just ascribe different mythical values to them, and are actually willing to trade them. So why not take advantage of that and let THEM (the market-makers) be the useful idiots for a change, at least until the global economies cease to exist? At least for a while, each (particularly the major ones) will still have RELATIVE value to one another – so why not take advantage of that fact as long as it lasts? That will only cease to exist when a complete and utter global collapse occurs – SuperSHTF.
It doesn’t require going down to the handful of banks where you can do currency exchanges, either. Any brokerage account that deals in foreign securities is one option (not a lot of them, but a few good ones out there. some with quite good commission structures, and 24/7 on line trading). You simply open your account in $US (assuming that’s where you live or you at least want to use $US currency at the moment while it’s still CLOSE to its recent high – but coming down). Then once you’ve got your money in the account, you can exchange it in moments on line for whatever other currency corresponding to stocks they trade in (Canadian mining stocks are plentiful, so conversion from $US to $CAD is almost instantaneous without ever talking to a living human being). With some brokerages, the cost is almost negligible. And you just keep your money parked in the account – purchasing mining stocks, if you wish with some of it – until one currency has made a significant enough move over another, then you exchange back.
For example, had someone purchased Canadian dollars just a couple of months ago at $1.46 to the $US, and if the $US falls back down just to where it was only three years ago (a 1:1 ratio), the Canadian dollars could be converted back into $US for more than a 40% gain in perhaps a couple or three years (depending on how long it takes for the $US to finally come off its current perch). Similarly, had a person purchased an ounce of gold each in Canadian dollars and $US just three years ago, they’d have paid roughly $1400 in each currency for the respective one ounce coins. Had they sold each coin today, they would have lost $37 on the one purchased (and sold) in $US, but gained $237 in Canadian dollars – not bad (a roughly 17% gain in only three years). It’s not for the faint of heart, but there can be some reasonably intelligent risk taking with limited amounts of money if one is following the currency trends over time. (Do NOT confuse any of this with overnight currency trading, or day-trading of stocks, however. They’re no better than Las Vegas, in my opinion).