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I guarantee that you’re not going to hear this in the mainstream media here in the United States. In fact, I had a very hard time just finding this story on the Internet.

I also have to say that I am shocked that this story is not making headlines across the world, especially here in the United States, but I certainly understand why it is not happening.

What am I referring to?

The fact that today it was announce, India has reached an agreement with Iran to pay them in Gold for their Oil.

What’s the Big Deal?

In case that headline doesn’t mean much to you or you don’t understand its implications, allow me to explain a bit further.

The U.S dollar is currently the reserve currency of the world and has held this status since we officially abandoned the gold standard.

I say ‘currently’ because I believe that one day, in the not so distant future, the U.S dollar will lose that status as reserve currency which will not be very good news for those Americans hoarding dollars.

Prior to us abandoning the Gold Standard in 1971, the Bretton Woods Agreement established a monetary system in which the dollar was directly tied (asset backed) to physical gold and every other currency in the word was tied to the U.S Dollar.

When the U.S abandoned the gold standard, the U.S dollar became the official reserve currency of the world, backed solely by the confidence of world governments.

Consequently, reserve currency status means that when countries trade goods and services, they do so using the official reserve currency (the dollar) to price their goods.

If a country has no dollars, then they must buy dollars in their own currency to be able to transact.

Again, remember, the only reason we (the United States) have reserve currency status is because governments around the world still believe that U.S dollar is a safe haven, or a healthy currency.

The U.S Dollar Reign is coming to an End Soon!

Back in December of 2011 I read an article that announced China and Japan, the worlds second and third largest economies, respectively, had agreed to drop the U.S dollar and trade in t heir own currencies.

I was shocked to read that because not only does that mean that the 2^nd and 3^rd largest economies in the world are losing confidence in the dollar, but it completely undermined that currency all together.

Early this month, I read that Iran and Russia had also drafted up that same agreement – dropping the U.S dollar to trade in their own currencies.

Again, I was shocked and disturbed that none of this was making headlines in the news.

And then, a Bombshell

Yesterday, January 23, 2011 India announced that it was to pay Iran in Gold for its Oil and China was expected to also follow suite.

No longer will they use the dollar to buy their oil, but now, Gold.

This, in my opinion, should be making headlines in U.S because it is a clear indication that major countries around the world:

1. No longer respect the dollar as reserve currency
2. Proves to completely undermine a fiat currency (not asset backed); they won’t even use their own currencies.
3. And, is the first time precious metals are significantly preferred and used for trade since the gold standard.

In other words, I would be very nervous right about now if I were hoarding dollars!

The Silver Lining

Although this news seems to be very negative the reality is that there is incredible opportunity for YOU reading this, if you take action.

Of course, I cannot tell you what to do with your dollars. That is a decision that must be made by you.

However, I will that this kind of news further gives credence to my reasoning that precious metals like Gold, Silver, Platinum and Palladium will go up in value, way higher than they are today, when complete confidence in the dollar is lost.

In fact, aside from becoming an Internet Entrepreneur and building an asset for myself, buying precious metals now is how I believe I will build a substantial part of my wealth.

If this makes you nervous at all, then it’s time to get serious about protecting your wealth!

Mastermind:

How do you see a collapse of the dollar affecting your livelihood? Are you taking any measures to protect your money and purchasing power?

Related posts:

1. Investing in Gold | Why I Would Cash-Out and Run for the Hills, Today!!
2. It’s Time to Get Serious and Protect Your Wealth!
3. Financial Intelligence | Make Thy Gold Multiply