Brazil is facing some "real" problems. The Brazilian real's rise in relation to the dollar is threatening to stunt economic growth by weakening Brazil's global trade position. To make matters worse, Brazil's finance minister is expecting another round of monetary easing -- read: money printing -- from the U.S. Federal Reserve.
In response, Brazil's central bank recently slashed interest rates in an effort to keep pace with the declining dollar. But Brazil is just the latest participant in the race to debase.
The currency war continues
Countries across the globe are engaging in competitive currency devaluation in an attempt to gain an upper hand in global trade. Last year, Asia's 10 biggest economies engaged in monetary easing measures in order to stimulate growth. And recently, the Japanese and the Swiss began making moves to weaken their own currencies.
An escalation of the "currency wars" will likely facilitate a flight to safety. And in a world of deteriorating paper currencies, gold and silver are the go-to investments.
Precious metal investments
Buying physical gold and silver is one way to invest, but many believe the precious-metal miners offer the greatest upside potential.
On the silver front, there's Silver Wheaton
First Majestic Silver
The bottom line
The lasting impact of the race to debase remains to be seen. For the time being, gold and silver could be a good place to ride out the storm. One thing is for sure: A Brazilian real sure doesn't buy what it used to.
Fool contributor Adam J. Crawford does not own shares in any company mentioned in this article. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
No Holiday Reprieve for 2 of the Biggest Retail Train Wrecks
Most department store chains have posted surprisingly strong results for the 2017 holiday season. However, these perennial laggards couldn't capitalize on the uptick in consumer spending.
3 Stocks That Could Put Amazon's Returns to Shame
These three tickers could be better bets than Amazon for new investors right now.
Will This iPhone Supplier’s Terrific Run Continue in 2018?
Lumentum's growing momentum in 3D sensing could help it overcome the weakness in the telecom segment.