Maintaining Gold Reserves

java said:
To be fair, only recently in Venezuela inflation got so bad the few merchants with goods only accepted gold for a while. But I can't see a goldbug ever spending his gold just to make it through a few hard weeks. They will never sell. Never have and never will. Ride it up ride it down.
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During the hyperinflation of the 1920's and right after WW2, people were buying homes for .10 on the Deutsche Mark / Reichsmark throughout Germany. You could buy a home for literally pennies. I read a book about WW2 (After the Reich ....excellent book) and in Berlin they were trading unsmoked cigarette butts for window panes.

If things got really desperate and you had to trade gold and silver for food etc...you are likely to get shot during the trade.
 
DallasCowboysFan said:
During the hyperinflation of the 1920's and right after WW2, people were buying homes for .10 on the Deutsche Mark / Reichsmark throughout Germany. You could buy a home for literally pennies. I read a book about WW2 (After the Reich ....excellent book) and in Berlin they were trading unsmoked cigarette butts for window panes.

If things got really desperate and you had to trade gold and silver for food etc...you are likely to get shot during the trade.
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Yeah, you don't want to be trading gold for firearms or ammunition. Maybe something to read if the person seems nice and shares similar interests.
 
DallasCowboysFan said:
During the hyperinflation of the 1920's and right after WW2, people were buying homes for .10 on the Deutsche Mark / Reichsmark throughout Germany. You could buy a home for literally pennies. I read a book about WW2 (After the Reich ....excellent book) and in Berlin they were trading unsmoked cigarette butts for window panes.

If things got really desperate and you had to trade gold and silver for food etc...you are likely to get shot during the trade.
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The book to read about that period and hyper inflation is "When Money Dies" by Adam Fergusson.
 
Zimbabwe have not...they have recently printed new notes and their dollar has the same parity as US dollar i.e. their 1 zimbabwe dollar = 1 US dollar

So I expect with strong US dollar coming, smart people in Zimbabwe are exchanging Zimbabwe dollar for US dollar while they can :) a phenomenon known as Graham's law - bad money drives out good money
 
victorycountry said:
Zimbabwe have not...they have recently printed new notes and their dollar has the same parity as US dollar i.e. their 1 zimbabwe dollar = 1 US dollar

So I expect with strong US dollar coming, smart people in Zimbabwe are exchanging Zimbabwe dollar for US dollar while they can :) a phenomenon known as Graham's law - bad money drives out good money
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A number of currencies including the dollar are legal tender. Much like Bahama and Panama, they print their own currency which is used in small day to day transactions but anything major ends up in dollars and since the currency is backed by dollars there's no danger of hyperinflation. I believe it's just coins and small notes in Zimbabwe, makes sense given the logistics of getting U.S. coins to Zimbabwe.
 
Sig said:
A number of currencies including the dollar are legal tender. Much like Bahama and Panama, they print their own currency which is used in small day to day transactions but anything major ends up in dollars and since the currency is backed by dollars there's no danger of hyperinflation. I believe it's just coins and small notes in Zimbabwe, makes sense given the logistics of getting U.S. coins to Zimbabwe.
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http://www.wsj.com/articles/cash-st...rs-for-dollarsat-fluctuating-rates-1480428000

I think it's different in Zimbabwe.
Looks like the corrupted govt is trying to print off more Zimbabwean notes in the future to replace US dollars since they are short of US dollars to pay bills to their employees.
I think sooner or later, they will face the some super inflation again.
They're kind of people who never learn
 
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