In case of hyperinflation, which is a loss of confidence in the currency, nothing will protect your purchasing power better than precious metals.

Thanks to my friend H., we can just have a look at Venezuela. The country went from one Bolivar to another one : The Bolivar, to the Bolivar fuerte in 2008 (at the rate of 1 for 1,000) and to the Bolivar soberano in August 2018 (at the rate of 1 for 100,000).

The purchasing power of the currency is plunging, collapsing

From the end of August 2018 until now, the Bursatil Stock index has appreciated by 89,638% (this is 89 thousands 638%, not 89.6%) in Bolivar soberano terms.

But in US dollar terms, stocks lost 71% of their value.

During the same period, gold has appreciated by 444,377% (444 thousands 377%) in Bolivar terms. AMAZING !

« Voltaire famously said, ‘Fiat currency always eventually returns to its intrinsic value–zero.’

Got Gold ?

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