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Let’s say someone supposedly fears a hyperinflation and hence the devaluation of money (or historically speaking the implementation of a new currency, e.g. post-war Germany). This extreme inflation is caused by an over aggressive political guideline, too much debt/suspensions (in those current times), external factors (war) or anything alike - there are many reasons to why such things could happen!

What’s the best way of protecting one’s liquid wealth (the currency someone has, not the net worth) - in different price categories? Someone with $300k+ lying around might invest in a house, an individual with “just” e.g. $10k might purchase Gold? Other currencies?

Please share founded opinions in regards to historical events at best, i.e. “Gold is a solid option as seen in [...]; you barely face any conversion loss and it’s pretty stable!” Proof-testing those hypothesis in different scenarios would be top-notch, e.g. “in times of a war your ‘saved cash’ in real estate might get destroyed hence leave you without any substantial value -> Gold is better because [...]”

J. Doe
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You can accumulate precious metals like Gold, Silver, which will help in the hyperinflation scenario.

The article suggests that for $100k money in the hyperinflation scenario, 10 ounces of gold a person should have or 150 ounces of silver.

To quote: https://lenpenzo.com/blog/id23998-economic-collapse-101-how-much-gold-and-silver-should-people-own-2.html

if you want enough insurance to provide the equivalent purchasing power of, say, $100,000 after an economic collapse, then you’ll need to accumulate 10 ounces of gold (10 x $10,000). On the other hand, five ounces of gold and approximately 150 ounces of silver (5 x $10,000 + 150 x $333) should get you $100,000 worth of insurance too.

Also, how much you are self sufficient makes you to sustain the economical collapse. You can live off-grid and have limited use of money, where you can manage yourself with your own vegetables in your garden, your own solar power, your own water source etc. In that case, your dependence of money will be very minimal and you can care less about the economic collapse.

Irrespective of economic collapse, you should have a diversified portfolio consisting of diversified index funds, bond funds, which will help your money to grow in the long term. In parallel, have precious metals as part of your portfolio. But, don't go overboard with precious metals. IMHO, you can maximum have 10 - 20% of precious metals in your portfolio. This is just a contingency plan.

Venkataraman R
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