Chat with us, powered by LiveChat

Currency Deaths

12 Sep

Currency Deaths

Gold Market Discussion
Currency Deaths Remind Us Why We Own Gold and Silver

Wednesday, 9/12/2018

There is only one answer to the question “how many paper currencies have failed?” All of them. 

Or stated differently, thousands of them have already failed, while those that haven’t quite given up the ghost yet, the newer ones including the paper Federal Reserve dollar, are in the process of failing.

The death of a paper currency may seem to happen slowly, although to anyone watching closely everyday, as we do at RME, it starts slow and then accelerates very quickly. The general public only notices it when the tragedy of a socialist failure like Venezuela makes the network news. However, there are many world currencies in a death spiral right now besides Venezuela’s Bolivar.

Using the dollar as a benchmark, (we’ll come back to that in a moment) here is how much value a half-dozen of the world’s currencies have lost just this year according to the firm Pension Partners:

  • Venezuelan Bolivar – 99.99%

  • Sudanese Pound – 61.10%

  • Argentine Peso – 50.50%

  • Turkish Lira – 44.00%

  • Angolan Kwanza – 38.80%

  • Brazilian Real – 20.70%

A dozen other currencies have also suffered double digit losses so far this year.  Those who have been victimized by them all wish they had put their trust in gold, not paper.

Venezuela Bolivar Hyperinflation
What hyperinflation in Venezuela looks like.

 

Empty Food Shelves in Venezuela
An empty food market in January 2018- Caracas, Venezuela

 

Zimbabwe
The aftermath of currency hyperinflation: Here is actual currency from Zimbabwe. Yes, you read it correctly.

What this means for investors:  Some of the US dollar’s apparent strength is due to those (usually the financial institutions affected, and not the common people) moving out of the most troubled currencies and into dollars.

But remember, the real value of paper money is how much you can buy with it.  And on that measure, no matter how many market commentators tell you the dollar is up or the dollar is down, they are only comparing it to other currencies that are also losing value.  In the real world – the one that matters – the dollar is losing value.  Like the others, the pace of that loss will accelerate.

To protect yourself against the sorry fate of all paper money, you need to own gold.


As always, I encourage you to speak with your broker at RME for more market updates. Experts are available Monday-Friday from 9 AM- 5 PM. Call today-  602-955-6500 or toll-free at 877-354-4040.

“I’ll be keeping a sharp eye on the market and I encourage you to do the same!”

jim-sign