Without a doubt, a currency crisis is coming. Rather than sit back and wait for it to happen, protect yourself and take advantage of the financial chaos that can basically make your dollar as worthless as the paper on which it is printed. I recently saw a preview of this type of debacle. In early 2006, depreciating currencies flooded emerging markets with sell orders from Brazil to Indonesia. The Icelandic krona has plunged nearly 10% in just two days, trailing Icelandic stocks and bonds and expanding into Brazil, Mexico, Poland and Turkey.

The harbinger of this was the Asian currency crash of 1997, when stocks ducked south over the winter. Banks, insurance companies, real estate and bonds also disappeared. Gold was the only viable option left. If the currency were to fall in value again, gold would be worth at least ten times its current value.

Is there such a thing? Easy:

Since gold cannot be manufactured or printed at the whim of greedy politicians, it cannot depreciate as quickly as paper money printed when needed. If the currency is gold-backed, then $1 fiat currency should be backed by approximately $1 worth of gold. Once the currency is no longer backed by gold, the government can print as much as it wants. Of course, most governments in the world have abolished the gold standard, so paper money has no intrinsic value. As a result, most major institutions speculate only for a short period of time between these currencies and related local assets such as stocks and bonds, and then convert profits into gold. This is the beauty of Forex.