The 'EURO vs DOLLAR' Effect
on Your Business

How it impacts your Bottom Line -- and what you can do about It

The Euro vs Dollar Effect is the main driving factor behind the US dollar's ongoing deterioration in foreign exchange value. It is not that difficult to understand why this is so.

Up until only 1999, the US dollar was the world's exclusive "reserve currency." When the euro was born in 1999 and then fully launched as a cash currency in 2002, this changed. All of a sudden, the dollar had a competitor for its world reserve-currency status. The effect was dramatic, as can be seen on the following chart.

The Dollar - since 2002

Ever since 2002, the dollar's foreign exchange value has fallen, and the euro's has risen. More and more oil producing nations, especially in the middle east, have begun to accept euros instead of dollars, or euros alongside the dollar, for several years now.

Only recently, the dollar has lost all support from a technical analysis standpoint when it fell below its all-time low of 90 on the US Dollar Index. The index compares its forex value with a basket of other major currencies.

From a fundamental analysis standpoint, things look equally bleak for the dollar. Since the dollar lost its gold backing internationally in 1971, the fact that Saudi Arabia agreed to accept only US dollars in trade for oil from other nations was the only thing that guaranteed worldwide demand. Other oil nations followed suit because their was simply no alternative to the dollar before 1999.

But now, there is.

What Does this Mean to Your Business?

It means that the money you are earning is buying less and less as time goes on, especially internationally.

It would be a great mistake to think that you are probably not affected by that because you only buy what you need in the domestic market. Many of the things you buy here in the US were first bought somewhere abroad. Just think about oil, for example.

Oil prices factor large in the calculation of domestic products, whether via increased transportation cost or as an essential raw material. As a direct result of the dollar's decline, oil prices have only recently reached historic levels - but you know that already.

The dollar's decline in value causes price-inflation to accelerate in the US. You may have noticed already that things are getting more and more expensive, and the money you make buys less and less, even though the government statistics still indicate that inflation is "under control."

The sad truth is that, due to certain creative accounting methods, the government's figures are significantly understated and may well be understated by several orders of magnitude.

Gold: An Inflation Hedge

What you may not realize is that the price of gold - which used to back the dollar, has also risen dramatically during the same period. Most importantly, gold's price rose in terms of all other major currencies as well, not just in terms of the US dollar.

That little known 'secret' is the key to not only preserving but actually boosting your business' profitability and future viability.

How to Earn Gold

Since the late 1990's, it has been possible to use physical gold to buy and sell products and services online, very similar to the way you perform online credit card transactions.

By simply offering your customers the opportunity of choice i.e., whether to pay you for one or more of your products or services in gold as well as dollars, you can easily - and passively - earn solid, physical gold right alongside your usual dollar revenues.

By doing so, you'll begin to build a sound asset base the value of which is independent of the performance of the dollar - and also independent of anyone's ability to make good on their promises to you.

Opening an online gold account is free, and its easier than setting up an online merchant account with a credit card processor. After setting it up, all you need to do is to plug the code with the payment solution into your web site, and customers who have an online gold account can pay you in real, physical gold.

It's safe, it's legal - and it's convenient.

Best of all, the income your business will receive in gold is completely passive. There is no need for you to do anything more in order to build up a nice and secure nest-egg of gold bullion. Your slowly and surely accumulating nest-egg will act as a form of insurance against the ongoing dollar devaluation. There is no additional time involvement or money expenditure required on your part.

How to Earn More Gold

If, after trying this out and beginning to earn some solid gold, you happen to like it and want to earn more gold, just add other products or services to your gold payment-option list. It's that easy.

So, how do you find customers who can pay you in gold? As you know very well, it's hard enough to find customers, period. How do you find people with online gold accounts, then? Are their numbers large enough to make a difference to your business?

The simple and truthful answer is no - but that shouldn't deter you. This site is not promising a windfall bonanza. It suggests ways in which you can start building a prudent hedge against further dollar declines right now. It costs nothing to start and involves only a short time commitment to get set up.

The trick is to educate your existing customers about how they can benefit from starting a regular online gold savings program. If they have some gold when the dollar crashes out of sight, you will still have customers who are able to pay you.

Just realize that if you pursue this option, you are gaining all of the advantages that grow out of it at no cost to you or your business.

Why would any business owner NOT want to do this?

Good question. If you have an answer, I would appreciate it if you share it with me by emailing me.

How do you educate your customers, then?

Easy. Bookmark this page and come back here in a week or so. We will have a ready-to-print brochure in pdf format available to you that briefly and convincingly presents the arguments for anyone to open and fund an online gold or silver account.

In addition, you can always provide a link from your website to the Small Business Goldmine. We will take care of the rest for you.

Naturally, not all customers will realize how much they benefit from being ale to save and buy things with gold - but, so what? Not everybody comes to visit your website, either. That's certainly no reason for not building one. It's the same ting with saving up on gold and silver bullion.

Advantages of a Gold-Saving Customer Base

However remote it may seem, there is a certain probability that the dollar's decline may morph from an orderly one to a disorderly one. Since the entire world financial structure is built on the US dollar, a sudden collapse of the dollar before the euro has taken sufficient root in world finance is possible if the current exodus from universal dollar-use continues.

In such an event it will be of tremendous value to you to have a customer base made up at least partially of people who own gold and who are used to spending gold. If the purchasing power of the dollar should collapse more rapidly than anticipated, your customers will still be able to pay you - and you will not have to raise your prices in terms of gold.

In the end, the euro vs dollar effect cannot help but lead to an economic environment where demand for US dollars decreases over time. No one knows to what levels the dollar will eventually depreciate. It is only prudent to hedge against such a decline by basing at least part of your business' earnings potential on the historical value-stability of gold or silver bullion.

Modern technology and the Internet have made it possible to make and receive bullion payments as safely and as easily as online credit card payments. Why not take advantage of this outstanding opportunity, especially in times that are as shaky as those we currently live in.

Change always brings with it a certain amount of dislocations - but opportunities abound during such periods. Recognizing and taking advantage of these opportunities is the smart business owner's hallmark.

You now have the knowledge of this opportunity and the wherewithal needed to exploit it in your hands.

With you and other small business owners like you working quietly and steadily to solidify your income and customer base, the US econoy stands a significantly better chance at weathering the ongoing financial and credit crises than if all Americans are still fully dollar-dependent.

Small business is the backbone of the US economy. Neither businesses nor governments can exist without the small business owners' efforts. By helping your business succeed in an environment of global change, you help your employees, your customers, and your vendors weather any future financial crises.

If the foregoing has raised your interest, please feel free to refer to our FAQ to gain additional insights and to answer some of the many questions you will surely have on this subject.

If you have a question that is not listed there, or if the answer provided does not answer the question fully in your opinion, please feel free to contact us. We will be more than happy to assist you with any information or resource we can provide.

All the Best,

Alex Wallenwein
Owner,
The Small Business Goldmine
Publisher,
The EURO VS DOLLAR GOLD MONITOR

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