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Inflation & Hyperinflation

Inflation is the decrease in the value of money due to the printing of an excess of it. Each new unit which is created reduces the value of all units which preceded it, such that an item purchased after money printing requires a higher number of units than were required to purchase the same item before money printing occurred. As a direct result of the money printing, the value of money falls and prices rise. Hyperinflation is a very high rate of inflation. Wikipedia defines it as inflation which is "very high or "out of control", a condition in which prices increase rapidly as a currency loses its value....As a rule of thumb, normal inflation is reported per year, but hyperinflation is often reported for much shorter intervals, often per month."

Whatever the definition, you want to make sure you are on the right side of inflation. That means holding real, tangible assets like gold, silver and platinum. Inflation erodes the value of cash and paper assets. Hyperinflation does the same, only quicker. Read these books in order to understand the implications of inflation and the steps required to protect your wealth.

"That was how it was in the heyday of the boom, which was the ripening stage of the inflation. Inexorably the inflation began to stalk the boom. From having been steady during the fifteen months preceding July 1921, prices doubled in the next four months and increased by ten times in the year through the summer of 1922. Consumers put on pathetic buyers' strikes against the rising prices. Interest rates soared as lenders tried to anticipate the loss of value of their principal. Businessmen quoted prices to one another with gold or constant-value clauses, or they did business in foreign currency. The government's actual deficits were relatively innocuous. But while the government's new deficits diminished, the inflation had become self-sustaining, feeding on the old ones. The government was unable to refinance its existing debts except by printing new money. The government's creation of paper wealth steadily fell behind the rising prices, and the inflation entered its catastrophic decaying stage."

"The final convulsion when it began was at first bizarre and at last became sheer nightmare. Beginning in July 1922, prices rose tenfold in four months, two hundredfold in eleven months. Near the end in 1923, prices were at least quadrupling each week. Prices raced so far ahead of the money-printing plants that, in the end, the total real value of all the Reichsmarks in the world was smaller than it had ever been, a phenomenon which enabled the government's economists to argue that there was no true inflation at all, it was just numbers. This phenomenon also made money so scarce, even in the face of astronomical prices, that urban Germans could not find the price of their daily bread. The worker had to compute his pay in the trillions, carry it in bales, and spent it instantly lest he lose it. The forlorn buyers' strikes of earlier days against the mildly higher prices were no more; in their place the buyers were vying with one another to buy up any kind of goods at any price before their little money could evaporate. The seas of marks which had been stored up by Germans and especially by trusting foreigners flooded forth and fought to buy into other investments, foreign currencies, tangible goods, almost anything but marks." An extract from "Dying of Money: Lessons of the Great German and American Inflations" by Jens O. Parsson.

GoldMoney. The best way to buy gold & silver Mobile Trading With IG Index
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Video: GoldMoney founder James Turk on Gold
GoldMoney founder James Turk talking at the 2008 UK Silver Summit: Factors That Will Drive Precious Metals' Bull Market

21 January 2010 | Learn More | Add to Favourites

Government Debt, Accelerating Inflation - Hold Gold
If the UK economic growth rate falls short, our government’s easiest option is to engineer inflation – so hold on to your gold

14 January 2010 | Learn More | Add to Favourites

1 - What is Inflation & Why is it a Risk to Your Wealth?
Inflation is coming which will erode the value of USD and GBP.

31 July 2009 | Learn More | Add to Favourites

10 - Government, Spending & Inflation
New taxes are difficult to apply. Thus the government must tax the public without its knowledge - it does so through inflation.

31 July 2009 | Learn More | Add to Favourites

12 - A Repeating Pattern of Government Inflations
There is evidence of inflation for 4,000 years of recorded history. The spectacular american inflation is still ongoing.

31 July 2009 | Learn More | Add to Favourites

13 - The Story of The Great American Inflation
In 1971 the U.S. suspended convertibility of dollars into gold. By 1973 major countries agreed to let currencies float freely.

31 July 2009 | Learn More | Add to Favourites

16 - Capital Markets: A Store of Future Inflation
The funnelling of money into the capital markets acts as a temporary holding container for the inflation.

31 July 2009 | Learn More | Add to Favourites

18 - The Inflationary Collapse
Government decides how fast inflationary reservoirs are filled. Forces outside their control decide when the dam shall burst.

31 July 2009 | Learn More | Add to Favourites

20 - The Winners & Losers in Inflation
Buy tangible assets like gold, silver and platinum. Avoid cash and paper instruments, especially those in USD and GBP.

31 July 2009 | Learn More | Add to Favourites

Inflation or Hyperinflation?
If people think there will be inflation they will have higher wage demands. Businesses will try to push for higher prices

24 June 2009 | Learn More | Add to Favourites

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