Hyper-inflation is a rejection of a currency.
Because prices rose so much in short period of time, currency becomes worthless, and people reject the currency. In the past, this has been associated to some sort of dollarisation, where people in highly inflationary countries would prefer holding US dollar instead of the currency of their own countries.
Now, there isn't any such things happening, yet some people are expecting that to happen, and so they reasoned that they should buy gold and silver, which, to them, are currencies, believe it or not.
Gold and silver is just like paper money except no central banks can print it. Gold and silver can be just as worthless as fiat money. People constantly saying that gold and silver are some sort of ultimate store of value apparently has no understanding of what money really is.
No comments:
Post a Comment