The Coming Collapse of the Dollar and How to Profit from It: Make a Fortune by Investing in Gold and Other Hard Assets [Hardcover]

James Turk (Author), John Rubino (Author)

Book Description

Release date: December 28, 2004

The dollar is in trouble. It has fallen against other currencies for the past three years, and now its orderly retreat could well become a rout. This spells potential disaster for the American economy—and potential riches for a few smart investors. In The Coming Collapse of the Dollar and How to Profit from It, financial gurus James Turk and John Rubino show how the dollar arrived at this precipice, why it will plunge, and how you can profit from the resulting financial crisis.

The U.S. today is the world’s biggest debtor nation, printing money with abandon to sustain the illusion of prosperity. The federal government owes $7 trillion and its debt is soaring. As a society, we owe more than $37 trillion, or about $500,000 per family of four. Our trade deficit with other countries is staggering, and to finance this mountain of debt we’re flooding the world with dollars. The inevitable result: The dollar will decline until it is displaced as the world’s dominant currency. Precious metals will soar in value, and gold will reclaim its monetary role at the center of the global financial system.

Traditionally a haven during times of uncertainty, gold has risen dramatically since 2001. By the fall of 2004 it was up by nearly 50%, at over $400 an ounce. But this is just the beginning.

James Turk, a leading gold authority and the founder of GoldMoney.com, and veteran financial writer John Rubino, show readers how to capitalize on gold’s dramatic climb. In The Coming Collapse of the Dollar, Turk and Rubino reveal which stocks and bonds will falter as the dollar declines and why that decline is virtually inevitable. They offer strategies for using gold coins, gold stocks, gold-based digital currencies, and other hard assets to create a profitable portfolio. And they explain how to make the most of your gold and other precious metal holdings, identifying the opportunities and pitfalls of buying gold mining stocks and the mutual funds that invest in them.

America’s debt binge has put its economy at grave risk. The value of the dollar is falling; many stocks are once again wildly overvalued; and bonds, tied to an ever-diminishing dollar, are a disaster waiting to happen. By investing in gold and other hard assets, Turk and Rubino explain how you can protect yourself from these dangers.

The Coming Collapse of the Dollar and How to Profit from It is a must read for every investor, whatever the size of his or her portfolio.

For more information, visit www.dollarcollapse.com.

Editorial Reviews

Review

Advance Praise for The Coming Collapse of the Dollar and How to Profit from It

“Turk and Rubino are right: There is a crisis coming, and it will cause a collapse in the mountain of credit fostered by the monopoly central banks of the world. Read this book and find out how you can protect yourself while there's still time.” —Robert R. Prechter, author of the bestseller Conquer the Crash

”Should be read by everyone who is interested in both their own investments and this nation's future. I recommend this book highly.” —Richard L. Russell, Editor, Dow Theory Letters

“[Turk and Rubino] lay out a road map for avoiding the ‘Perfect Financial Storm.’ By reading this book you will be able to keep you and your loved ones safe, and . . . build real wealth in the process.” —Jim Puplava, Puplava Securities, Financial Sense Online
“A home run here for investors who want to profit from the dollar collapse.” —Bill Murphy, Chairman, Gold Anti-Trust Action Committee and founder, LeMetropoleCafe.com


“Fast moving, compelling, and extremely relevant for all investors.” —Rob McEwen, CEO, Goldcorp

“Every American investor and every foreign investor in dollar denominated investments ought to read this book.” —Franklin Saunders, Editor, The Moneychanger
“As Turk and Rubino note, hard times are hard only for the unprepared. Read this book and you will not only be prepared, you will profit greatly from what lies ahead.” —Robert Bishop, Editor, Gold Mining Stock Report

From the Inside Flap

Periodically, the global economy shifts gears in a fundamental way, turning conventional wisdom on its head and producing new categories of winners and losers among investors. The spectacular growth of the last twenty years has slowed; and the dollar, once the world's dominant currency, is falling in value every day. One sure winner has emerged from the debacle, however: gold. Historically a haven during times of uncertainty, gold began rising in 2001 when high-tech stocks imploded. At the end of 2003 it was up by 50 percent, trading at around $420 an ounce. With governments running up record debts and printing money with abandon to sustain the illusion of prosperity, gold is now poised to soar in value against most national currencies and reclaim its place at the center of the global financial system.

In THE COMING COLLAPSE OF THE DOLLAR AND HOW TO PROFIT FROM IT, James Turk and John Rubino explain how ordinary investors can preserve and increase their wealth by investing in gold coins, gold mining stocks, and gold-based digital currencies. They delineate the potential profits, as well as the risks involved, in the various options; discuss how to integrate gold into a balanced financial portfolio; and point out the pros and cons of buying shares in funds that invest in gold-mining stocks.

The devaluation of the dollar has already hurt millions of Americans: the real value of fixed incomes has shrunk; the stock market may be overvalued once again; and bonds, tied to an ever-depreciating dollar, are headed for disaster. In a clear, highly practical style, THE COMING COLLAPSE OF THE DOLLAR AND HOW TO PROFIT FROM IT shows readers why catching the "gold bug" now is the surest way to flourish in the future.

See all Editorial Reviews

Product Details

• Hardcover: 240 pages
• Publisher: Broadway Business (December 28, 2004)
• Language: English
• ISBN-10: 0385512236
• ISBN-13: 978-0385512237
• Product Dimensions: 0.8 x 6.4 x 9.3 inches
• Shipping Weight: 1.1 pounds
• Average Customer Review: 4.1 out of 5 stars  See all reviews (46 customer reviews)
• Amazon Best Sellers Rank: #460,224 in Books (See Top 100 in Books)

Most Helpful Customer Reviews

135 of 136 people found the following review helpful

5.0 out of 5 stars Timely Advice for Our Fiat Currency March 26, 2006

By Mike D. Landfair

Format:Hardcover|Amazon Verified Purchase

I just finished reading The Coming Collapse of the Dollar and How to Profit From It By James Turk & John Rubino published in 2004. James Turk is founder of GoldMoney.com, the leading digital gold currency payment system. John Rubino is the author of How to Profit from the Real Estate Bust.

I've posted a lot about inflation and gold, the Federal Reserve, and the destruction of the US Dollar. I have read about the inflation that Germany experienced after WWII, the devaluation of the Mexican Peso and the Argentine Peso. If that is our future, I wanted to have some idea of what is in store for us and. The book is divided into four parts and is well written and difficult concepts are explained well:

Part One - Why the dollar will collapse

Part Two - Money Then and Now

Part Three - Wht Gold Will Soar

Part Four - Profiting From The Dollar's Collapse

In part one we learn that we have a fiat currency, backed by nothing except a decree that the US Dollar is legal tender. Throughout history, in order for governments to satisfy demands without raising taxes, a government not only begins to debase its money, but inflates as well. Both are happening in the US and no government has been successful. We have a history of that in this country with the Continentals and the Confederate currency, both worthless.

Another fact that dooms our currency is that we have too much debt. Total unfunded liabilities of the US are in excess of $43 Trillion, as a society we owe another $37 Trillion and Derivatives are in excess of $200 Trillion.

Then we have a trade imbalance which just topped $800 Billion for 2005. We have been up in arms lately by the Chinese wanting to buy Unocal, then Dubai wanting to own our eastern port management companies and Dubai wanting to own some of our critical defense industry by trying to buy Doncasters Turk and Rubino point out on p31:

Foreign investors now own about $8 trillion of U.S. financial assets, including 13 percent of all U.S. stocks, 24 percent of corporate bonds, 43 percent of Treasury bonds, and 14 percent of government agency debt. By the end of 2003, about a third of Fannie Mae's mortgage-backed bonds were being sold outside of the U.S.

That was in 2003 and it has gotten considerably worse. What's in store for us:

Over time, the gap between tax revenue and the demands placed on government tends to grow, and spending, borrowing, and currency creation begin to expand at increasing rates. Inflation accelerates, and the populace comes to see the process of "debasement" for what it is: the destruction of their savings. They abandon the currency en masse, spending it or converting it to more stable forms of money as fast as possible. The currency's value plunges (another way of saying prices soar), wiping out the accumulated savings of a whole generation. Such is the fate of every fiat currency.

The government wants to keep this game going as long as possible by issuing phony CPI numbers, then by excluding energy and food, concentrating on a "core" rate. Phoney low inflation numbers keep bond yields down and "COLA" adjustments low. What is the housing bubble, but selling USDs for a tangible asset. Gold is a warning sign and a rising gold exchange rate is fought by capping and leasing gold, until the central banks are short 12,000 to 16,000 tons. And now one of the tools Turk and Rubino use, The Fear Index, to gauge where gold is going in the next few years will be handicapped by the ending of release of M3 data.

Turk and Rubino do an excellent job of instructing you in Part Four. Can you profit from your knowledge of an impending collapse of the dollar? How can you protect yourself? How can you protect your accumulated savings?

I highly recommend this book to professional and novice, alike.

173 of 187 people found the following review helpful

3.0 out of 5 stars More than a little extreme ....... February 24, 2005

By Stuart Gardner VINE™ VOICE

Format:Hardcover|Amazon Verified Purchase

The authors do a good job of explaining how to invest in gold and how to put a portfolio together (from coins to mining stock).

Following the advice and investing all your funds into gold and a limited number of stocks could be self destructive though.

However, as the authors point out, the Government has confiscated gold before - and could again. If things get as bad as they suggest Governments could nationalize mines ........

If the authors are on target with their predictions, investing now in an assault rifle, a cabin in the woods and alot of tinned food would make a better investment than gold.

Gold could very well make a great investment given a sliding dollar; the argument that the dollar will collapse completely is taken to an absolute extreme (the Dollar Crisis, Causes Consequence Cures, covers the same ground more convincingly).

Useful book - worth considering as part of your personal investment strategy. However, I wouldn't plan my portfolio around the authors advice alone - having too great a dependance on any one asset class can be bad. Advice on how to invest in gold (practicalities)is very good though.

236 of 265 people found the following review helpful

3.0 out of 5 stars Good Advice...If Things Go Their Way February 27, 2005

By B. Lovian

Format:Hardcover

The authors are convinced that the dollar will collapse, but their book is far from convincing. Even if the dollar does collapse, it might not do so for years or even decades. They offer up historical and theoretical reasons why the dollar should collapse, and they sound persuasive, but they never show exactly WHY the dollar MUST collapse.

That said, if the dollar does collapse, then following their advice should prove fruitful. They present a number of different ways for both relatively conservative and aggressive investors to profit. But, embarrasingly, one of the contra-dollar mutual funds they recommend (PIMCO Foreign Bond) is actually a dollar-hedged bond fund, meaning it's not designed to benefit from a dollar decline. I guess they didn't bother to read the prospectus.

Their model portfolios would have even "conservative" investors basically place all their bets on a falling dollar. This is arrogant and irresponsible. Unless you're a speculator who can afford to lose big, you need some diversification (cash, short- term U.S. bonds, dividend stocks, etc.) so that a dollar rally won't lead to huge losses. I'm about 1/3 gold/contra-dollar, 1/3 cash/short-term bonds, and 1/3 dividend stocks. (I am avoiding long-term bonds completely until we see at least 7% yields to compensate for the risk.) When I become bearish on stocks, which I expect to do by 2006, then I may go up to 49% contra-dollar and 51% cash, but I'd never bet more than half my dough on a single investment strategy and no responsible advisor would suggest that you do.

Strangely, the publisher touts praise of the book from ultra-bear Robert Prechter, whose predictions have been pretty lousy of late. Prechter is a deflationist who has been a long-term bear on gold for quite some time. Did Prechter bother to read this gold bug tome before he lavished praise on it?

Gold is money, yes, and everyone should have some. But that doesn't mean "money" is or will be the most profitable asset to hold. We just don't know. If this book can convince some of those people who have been taught by Wall Street and CNBC that all they need is S&P 500 index funds -- and maybe some bonds -- to diversify into hard assets like gold, it will serve a useful prupose. If it turns sane people into raging gold bugs who mortgage their house to stockpile gold coins and go on margin to buy shares in mining companies (something the authors actually suggest since they're so sure gold is going up), then this book is just another vehicle for creating more gold bug losers who get caught up in a mania and ride it down to the inevitable crash (the irrationally euphoric gold bugs of the late 70s are STILL trying to recoup their losses).