There is always some degree of risk associated with any currency, including the U.S. dollar. However, the likelihood of a complete and sudden collapse of the U.S. dollar is generally considered to be relatively low. Not impossible but currently lower than that of the other countries.
The U.S. dollar is one of the most widely-used currencies in the world and is the primary currency for international trade. It is also considered to be a safe-haven currency, meaning that it tends to hold its value during times of economic and political turmoil.
That being said, there are some potential risks to the U.S. dollar that investors should be aware of. One risk is inflation, which can erode the value of the dollar over time. The Federal Reserve, which controls U.S. monetary policy, has a mandate to keep inflation in check, but there is always the risk that inflation could rise faster than the Fed can control it. Remember a quarter from 1962 could buy you a slice of pizza and a soda or a gallon of gas. Today its cant come close, BUT the silver in that 1964 or earlier quarter today could still buy you those things… Call me crazy, but that’s a tremendous store of value.
Another risk is the level of U.S. government debt. The U.S. has a significant amount of debt, and if investors begin to lose confidence in the government’s ability to manage that debt, it could lead to a decrease in the value of the dollar. Remember debt needs to be paid back. If people fear you cant pay it back they stop lending or even worse pull their money out. We have all seen what happens with a bank run, it’s the same thing just on a much larger scale.
Finally, changes in the global economic and political landscape could also impact the value of the dollar. For example, the rise of a competing currency, such as the Chinese yuan, could reduce the dominance of the dollar in international trade and finance. China, Russia and the rest of the BRICS countries are planning a competing currency as they no longer want a dollar dominance.
Overall, while there are risks associated with any currency, including the U.S. dollar, a sudden and complete collapse of the dollar is considered to be relatively unlikely. However, investors should be aware of the potential risks and take steps to manage their exposure to those risks. This is another reason people buy precious metals as the value of them has never gone to 0 or disappeared over night.