Gold Price During Hyperinflation
The comments below are an edited and abridged synopsis of an article by Kelsey Williams
Under the conditions characterized by price increases “so rapid and out of control that the normal concepts of value and prices are meaningless,” what would happen to the price of gold?
Hyperinflation describes rapid, excessive, and out-of-control general price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.
In addition, hyperinflation is described as “an extreme case of monetary devaluation that is so rapid and out of control that the normal concepts of value and prices are meaningless.”
The latter description is much more characteristic of the potential threat that most people envision when they think about hyperinflation.
Up for discussion: Hyper-hyperinflation; how it happened and what it meant; what’s the point; and conclusion.