It loses even more value and will eventually and inevitably collapse, along with the value of every asset that is denominated in USD. This has happened many times in recent and not-so-recent history; and when it happens, the currency is usually killed and buried in the fiat currency graveyard.

Newspaper articles predicting hyperinflation and even the complete collapse of the fiat currency based system were common. However, such a collapse has not happened. It seems like the global financial elite has found a way to inflate the currency without having any negative effect on the economy.

If a country’s own currency weakens (which makes imports more expensive, and in crisis situations can lead to major devaluation), their central bank can sell some of its foreign-exchange reserves and buy its own currency. This reduces supply and increases demand for their own currency, strengthening it.

As such they are forced to prioritise low interest rates and nominal growth over inflation control which could herald in the beginning of the end of the global fiat currency system that begun with the abandonment of Bretton Woods back in 1971.” …

A fiat currency will never go to zero as long as the users of that currency trust that they can exchange specified amounts of it for different goods and services. And, more importantly, that’ll they’ll continue to be able to do so in the future with the currency maintaining its expected value.

Warren Buffett does not invest in gold. He has invested almost $1 billion in silver, so the reason for his aversion is not simply a dislike for precious metals. The explanation for Buffett’s dislike of gold and for his enthusiasm about silver stems from his basic value investing principles.

With a recent share price around $10 a pop, this means you can essentially buy four ounces of gold for $1,000. — or just $250 an ounce.