🚨 These 5 Assets Will Survive A Complete Collapse... (And These 2 Will Go To Zero!) 🔥

Economic Collapses: What Assets Survive?

Introduction to Economic Collapse

• The speaker introduces five assets that have historically survived economic collapses, contrasting them with those that did not.

• Highlights a common misconception where individuals focus on optimizing returns rather than recognizing the potential for systemic failure.

Historical Context of Financial Failures

• Describes how gradual signs of financial distress emerge, such as bank failures and corruption, leading to severe consequences like account access restrictions.

• Cites the hyperinflation in Weimar Germany as an example where currency lost value rapidly, illustrating the real-time impact of economic collapse.

Patterns Across Different Countries

• Emphasizes that currency collapses share similar outcomes regardless of political systems, citing Venezuela, Zimbabwe, and Lebanon as examples.

• Discusses how individuals who followed societal norms (paying taxes and trusting media/government) often find themselves financially devastated during crises.

Current Economic Indicators

• Warns about accelerating conditions in the Western world that could lead to similar outcomes as seen in historical collapses.

• Encourages viewers to stay informed through his channel for insights into finance and geopolitics affecting personal finances.

Understanding Currency Collapse Dynamics

• Explains that history has shown currencies fail; "fiat" means "let it be done," indicating a lack of intrinsic value.

• Outlines a sequence leading to currency collapse: government overspending, growing deficits, inflation eroding purchasing power, and eventual loss of confidence in currency.

Corruption and Trust Erosion

• Notes that alongside financial collapse comes increased exposure of corruption among leaders and institutions.

• Observes current trends where trust in media and government is diminishing significantly across various regions.

Economic Collapse and Safe Haven Assets

The Impact of Currency Devaluation

• In under two years, countries like Lebanon and Venezuela experienced severe currency devaluation, losing nearly all purchasing power. This highlights the rapid loss of confidence in fiat currencies.

• Once confidence in a currency is lost, it rarely returns, leading to a migration towards safe haven assets during economic turmoil.

Precious Metals as Safe Havens

• Gold and silver have historically served as reliable stores of value during economic collapses because they cannot be created out of thin air; they require significant effort to mine and refine.

• Historical examples from Germany, Zimbabwe, and Venezuela show that gold maintained its purchasing power while paper savings were obliterated during crises.

• Silver behaves differently than gold; it is more volatile but serves a similar purpose. Historically, silver often underperforms during stress but can outperform gold later on.

Recent Trends in Silver Investment

• In 2025, silver's price surged from $30 to $120 per ounce within a year, fitting historical patterns despite experiencing significant crashes due to market manipulation.

• Precious metals are viewed not as speculative investments but as insurance against systemic monetary failures. The speaker personally invests in both gold and silver.

Strategies for Investing in Precious Metals

• The speaker offers educational programs on investing in gold and silver with discounts available for viewers. A free guide is also provided for those with budget constraints.

Migration to Foreign Currencies

• When domestic currencies fail, people often turn to foreign currencies as a temporary refuge. However, these are still considered worthless fiat currencies compared to precious metals.

• Examples include savers in Lebanon who thrived by holding US dollars outside the banking system amidst local currency collapse.

Behavioral Economics During Crises

• People do not wait for government intervention when their financial security is at risk; they take proactive measures based on behavioral responses rather than political considerations.

• The speaker emphasizes the importance of diversifying investments into real assets rather than relying solely on fiat money amidst economic volatility.

Understanding Productive Equities and Their Role in Economic Collapse

The Value of Selective Equities

• Not all equities are equal; some can be valuable during economic downturns, but selection is crucial.

• Stocks may rise nominally during currency collapse, as seen in Venezuela, where the stock market surged despite a disintegrating economy.

• The increase in stock prices does not indicate improved company value but rather reflects a broken measuring stick due to currency devaluation.

Revenue Sources Matter

• Companies with revenue sources in foreign currencies tend to fare better than those reliant on domestic earnings during currency crises.

• Exporters generally survive economic turmoil better than domestic companies because they benefit from lower real costs.

Productive Equities as Inflation Hedges

• Productive equities with international revenue streams can serve as effective inflation hedges even amidst monetary breakdown.

• Selling these equities during crises is often a mistake; ownership of real productive assets adapts better than fiat currency claims.

The Importance of Consumables and Barter Goods

Crisis Preparedness

• Discussion around consumables and barter goods often leads to skepticism, yet they hold significant value when traditional currencies fail.

• Historical examples show that during currency failures, such as in Venezuela and postwar Germany, alternative forms of exchange emerged based on scarcity and utility.

Immediate Utility Over Store of Value

• In times of crisis, items like food, fuel, medicine, and batteries become more valuable than cash due to their immediate utility.

• While these items may not be traditional stores of value, they provide essential protection during acute stress periods.

Real Estate: A Dual-Faceted Investment

Home Ownership and Agricultural Land

• Owning a home or agricultural land is vital since land produces food—an essential commodity that never goes out of style.

• Historical context shows that families owning land fared better during the Great Depression compared to urban dwellers facing severe hardships.

Risks Associated with Property Ownership

• Real estate carries risks such as illiquidity and visibility; governments can tax or seize property.

• Unlike other investments, land preserves value through production rather than just price appreciation.

Personal Financial Strategies for Stability

Foundations Before Speculation

• Emphasis on establishing solid financial foundations before engaging in speculative investments; safety should take precedence over risk-taking strategies.

Understanding the Risks of Fixed Income Assets

The Dangers of Fixed Income in a Collapsing Currency

• Fixed income assets, particularly bonds, are highly vulnerable when denominated in a collapsing currency, often leading to total loss for holders.

• Savings within failing banking systems tend to retain their numerical value on screens but lose purchasing power significantly; history shows this pattern is consistent and brutal.

• Being a creditor in a failing system typically results in catastrophic outcomes; historical evidence supports this claim.

Early Signs of an Emerging Crisis

• Current indicators suggest early stages of a crisis: cash restrictions, currency substitution, and increased speculation in hard assets.

• There is rising debt and corruption alongside declining trust in mainstream media; these factors contribute to societal divides and economic strain on currencies like the US dollar.

Preparing for Economic Uncertainty

Importance of Education and Diversification

• Individuals should prioritize self-education regarding financial matters; starting with free resources can be beneficial but structured learning is essential for deeper understanding.

• Diversifying across asset types, currencies, and jurisdictions is crucial during uncertain times; historical patterns provide guidance on potential outcomes.

• Waiting too long to act can lead to severe financial consequences; proactive measures are necessary to avoid being wiped out financially.