The US public debt is rapidly increasing and will soon put pressure on the US dollar. However the financial crisis is affecting the whole world. Which currency will be the new safe haven when the US dollar collapses?|||Gold; I am not sure that any currency that has a gold standard. Otherwise I would go for a commodity based country - canada, south america. australia or the middle east.|||I personally hold physical Canadian currency. There are several reasons for this. The local banks carry it. It is the only currency they will accept because we border Canada (I live in Alaska). During a currency devaluation and economic crisses Alaska is more likely to trade and recieve goods from Canada because they are a producing nation. Alaska is not connected to the US. You must come through Canada so it is wise to hold their currency for travel expenses. Also the US dollar will decline and buying Canadian currency now would be a good hedge for buying Canadian goods in the future. They have gold mining companies. 99% of mining companies are Canadian and listed on the TSX. Canada would be one of only a few countries that could back their currency by gold or silver in the future with ease because of their mining production capacity.
I currently hold 10% of my liquid cash reserves in Canadian currency to hedge against the US dollar. It is a good idea to do so. Banks in the Lower 48 may stock and trade other currency as well but here in Alaska the Canadian dollar is the only one they accept so I hold it. All other currencies. Canada is better positioned but they too are inflating their currency as well.|||USD is always the reserve currency. After that historically its been Sterling, Yen and now Euros. In recent times however, investors have moved funds from USD to EUR.
the dollar could eventually be replaced as the world's main reserve currency by the Special Drawing Right (SDR), which was created as a unit of account by the IMF in 1969.
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