Does Gold Keep up in Hyperinflation?

The comments below are an edited and abridged synopsis of an article by Jeff Clark

Hyperinflation is devasting, but there is a healing aspect to it. Since the responsibility for it lies with the government, there may be some justice to the way hyperinflation purges fiscal and monetary imbalances from an economy. After the Weimar Republic hyperinflation, the second half of the 1920s was a strong period for Germany, with low inflation and steady growth.

Does Gold Keep up in Hyperinflation? | BullionBuzz

Many currencies around the world, including the US dollar, are choosing the path of inflation. If hyperinflation occurs, there will be disastrous consequences for the unprepared. Given that the US dollar is the world’s reserve currency, the problems would spread to practically every country. Hyperinflation will shake people’s confidence not only in the dollar, but in the paper currency system as a whole.

We know that the measures to cure hyperinflation include tying the currency to a hard asset or even replacing it with one. When creditability in fiat money dissipates, gold may be the only viable option left standing. The investment implication is obvious: Accumulate gold.

How much is enough? Well, how many ounces do you own in relation to your total assets? Anything less than 5% will not offer you a sufficient level of protection in a high inflationary environment.

Don’t listen to any government’s pronouncements of confidence in the current system along with the mainstream media’s portrayals of the gold market. In a world awash in ignorance about real money, you have to study the relevant history, draw your own conclusions, and stick with them.

Leave a Reply

Your email address will not be published. Required fields are marked *