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Learn key investment strategies for a collapsing dollar. Discover key assets to protect your wealth.

Best Investments to Own When the Dollar Collapses

Disclaimer: This website and its content are for informational purposes only and is not financial advice.

During a dollar collapse, consider diversifying into hard assets like gold and real estate, and possibly foreign currencies or commodities to preserve wealth. These tend to hold value when fiat currencies decline.

What Does a Dollar Collapse Actually Mean?

A dollar collapse is an extreme event, far more severe than a typical market downturn or high inflation. It signifies a rapid and dramatic loss of the U.S. dollar's value and purchasing power. This could be triggered by unsustainable national debt, a loss of global confidence in U.S. fiscal policy, or a shift by major trading partners to an alternative currency.

The result would be widespread hyperinflation, a loss of faith in the currency as a medium of exchange, and significant economic disruption. While a full-blown dollar collapse is a low-probability event, understanding it is the first step toward preparing a resilient investment strategy.

The Enduring Appeal of Gold

One of the first things people often consider when thinking about what to own when the dollar collapses is gold. Throughout history, gold has been seen as a safe haven asset, a store of value that tends to hold its ground even when traditional currencies falter.

Its value is independent of any government's creditworthiness or central bank's policies. Instead, gold possesses intrinsic value due to its rarity and universal acceptance as a form of wealth. In a dollar collapse scenario, where confidence in paper money erodes, physical gold would become highly sought after as a tangible asset.

• Physical Gold: Owning gold coins or bars offers the most direct protection, as it is a tangible asset not tied to any financial institution. It’s a tangible asset that isn't tied to any particular government's monetary policy, which can be a significant advantage during times of economic uncertainty and when considering what to own when the dollar collapses.

• Gold-backed ETFs: These funds hold physical gold on your behalf, providing a convenient way to gain exposure without storing the metal yourself.

• Gold Mining Stocks: Investing in companies that mine gold can also offer exposure, but their value is influenced by factors beyond just the price of gold, such as company management and operational costs.

Central banks and institutional investors hold vast reserves of gold for this very reason—they understand its role as the ultimate hedge against monetary debasement.

Silver's Dual Role

Silver is another precious metal frequently discussed in the context of currency devaluation. Often referred to as "poor man's gold," silver shares some of gold's safe-haven characteristics but also has industrial applications. Its dual nature means its price is influenced by both its monetary value and its demand in industries like electronics, solar energy, and medicine.

While it can be more volatile than gold, its potential for increased demand in various industries alongside its monetary appeal can make it a worthwhile part of a diversified strategy when considering what to own when the dollar collapses. Because of its lower price point, silver is more accessible for many investors and could experience a significant price surge during a currency crisis due to heightened demand for tangible assets.

• Physical Silver: Silver coins and bars are an affordable way to acquire physical metal and serve as an excellent medium for wealth preservation.

• Industrial Demand: Its use in high-tech industries provides an additional layer of value, though this can also introduce price volatility if industrial demand fluctuates.

Many experts suggest holding a mix of both gold and silver, with gold as the primary anchor for wealth preservation and silver as a more speculative play with significant upside potential.

Updated Sep 7th, 2025

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Tangible Security in Real Estate

Beyond precious metals, real estate is often cited as a tangible asset that can hold its value during inflationary periods or when a currency weakens. In a hyper-inflationary environment, the nominal value of real estate would likely skyrocket.

As the purchasing power of your currency declines, the value of physical property tends to rise, making it an excellent hedge against a dollar collapse. Owning physical property can provide a degree of stability because its value is often tied to its utility and the land it sits on, rather than the fluctuating value of a specific currency.

• Income-Generating Properties: Rental properties are particularly appealing because the rent you collect would likely increase with inflation, providing a stream of income that keeps pace with rising prices.

• REITs (Real Estate Investment Trusts): These provide a liquid way to invest in a portfolio of income-producing real estate without the hassle of property management.

• Land Ownership: Owning raw land can also be a long-term store of value, as land is a finite resource.

Of course, real estate markets can vary significantly by location, and liquidity can be lower compared to other asset classes. However, as a long-term store of value, particularly income-generating properties, real estate can be a significant consideration when thinking about what to own when the dollar collapses.

The World of Commodities

Another area to consider when exploring what to own when the dollar collapses is commodities. These are raw materials such as oil, natural gas, agricultural products like wheat and corn, and industrial metals. Since commodities are globally traded and typically priced in U.S. dollars, a weakening dollar would likely cause their prices to rise in dollar terms. It would take more dollars to purchase the same amount of a commodity, effectively driving up its price and acting as a hedge.

Investing in a broad basket of commodities or specific commodities that you believe will see increased demand could be a way to hedge against dollar devaluation.

• Commodity ETFs: These funds track the price of various commodities, providing diversified exposure without the need to trade complex futures contracts.

• Stocks of Commodity Producers: Investing in companies that produce essential raw materials (e.g., oil companies, agricultural firms) can provide indirect exposure.

• Agricultural Products: During a dollar collapse, food and other essential goods will be in high demand, making agricultural products a potential area of strength.

It's important to understand the factors that drive commodity prices, which can be influenced by supply and demand dynamics, geopolitical events, and global economic growth.

Exploring Strong Foreign Currencies

Certain strong foreign currencies could also be considered when thinking about what to own when the dollar collapses. If the dollar were to lose its status as the world’s reserve currency, it would be because another currency or a basket of currencies has taken its place. Holding assets denominated in these stronger currencies could provide a degree of protection.

• Swiss Franc (CHF): Widely regarded as a safe-haven currency due to Switzerland's political neutrality and stable economy.

• Japanese Yen (JPY): Often considered a safe-haven currency due to Japan's status as a major global creditor.

• Euro (EUR): While facing its own challenges, the euro could gain relative strength if the dollar collapses.

Identifying economies with sound fiscal policies and stable growth prospects is key when considering this strategy. However, currency exchange rates can be volatile, and this approach requires careful monitoring of global economic trends and geopolitical developments.

Investing in Resilient Companies

Investing in companies that have strong fundamentals and the ability to pass on price increases to consumers might also be a prudent approach when considering what to own when the dollar collapses. A dollar collapse and subsequent hyperinflation would disproportionately affect companies with weak balance sheets or non-essential products.

However, businesses that sell essential goods or services often have more pricing power during inflationary times. People will always need food, utilities, and healthcare, making companies in these sectors more resilient.

• Essential Goods and Services: Companies in consumer staples, utilities, and healthcare sectors tend to perform better during economic downturns.

• Strong Balance Sheets: Look for companies with low debt and high cash flow, as they are better positioned to weather financial storms.

• Competitive Advantage: Companies with a "moat," or a strong competitive advantage, can maintain pricing power even in a difficult economic environment.

Identifying companies with a competitive advantage, strong balance sheets, and a history of navigating economic downturns could be a valuable part of a resilient investment strategy.

Diversification and Professional Advice

It's crucial to remember that no single investment is a guaranteed safeguard against currency collapse, and diversification is often recommended. A dollar collapse is a serious event, and relying on one asset class would be extremely risky.

Spreading your investments across different asset classes may help mitigate risk. A diversified portfolio might include a mix of physical precious metals, real estate, commodities, and resilient stocks, creating a layered defense against financial turmoil.

• Risk Mitigation: Diversification helps to reduce your exposure to the risks of any single asset class.

• Customized Strategy: Your investment strategy should be tailored to your specific financial situation and risk tolerance. What works for one person may not be right for another.

Understanding your own risk tolerance and financial situation is also paramount before making any investment decisions. Consulting with a qualified financial advisor can provide personalized guidance based on your specific circumstances when considering what to own when the dollar collapses. A professional can help you construct a portfolio designed to protect and preserve your wealth.

A Holistic Approach to a Dollar Collapse

Preparing for a dollar collapse is about building a comprehensive, holistic strategy, not just buying one type of asset. The core principle is to move your wealth from paper assets and into hard assets that have intrinsic value and are not dependent on the stability of a single government or currency.

Gold and silver provide a historical and proven hedge against monetary debasement. Real estate offers a tangible asset that can provide both income and inflation protection. Commodities can serve as a hedge against rising prices, and certain resilient companies can continue to generate value despite the economic turmoil.

The key to all of this is diversification. By spreading your investments across these different categories, you can build a portfolio that is more resilient and better equipped to withstand the most severe economic shocks.

While a dollar collapse is a low-probability event, having a plan to protect your wealth is a prudent step for any serious investor. This preparation provides not just financial security but also peace of mind, knowing that you have taken proactive steps to safeguard your future.

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By Jordan McCaleb, Precious Metals Investment Researcher