Towards Hyperinflation: A Review of the Gold Market in the Context of Western Hyperinflation
October 8th, 2009WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
DISCLOSURE: I am a BullionVault client and affiliate.
Paul Tustain, Director of BullionVault, has written an excellent piece about the nature of cold, the situation with some critical commodities and the potential for hyperinflation in the years ahead. I’d strongly recommend this to all Cryptogon readers, even those of you who have no interest in gold at all.
Towards Hyperinflation: A Review of the Gold Market in the Context of Western Hyperinflation (PDF)
You’re right, Kevin, great piece. I thought I’d highlight the closing statement (which is in no way a summary of the article), as it ties into a lot of the thinking of people who read this site, and helps support the present view of the stock market — not as an indicator of economic health but on the contrary — as an indicator of burgeoning inflation:
“It may not occur immediately, and it may not occur at all. But on the basis of what you now know perhaps you would accept that the probability of hyperinflation has increased to – shall we say – 20% within 5 years? That is a level of risk which is material, and that is why the early movers are already doing something about it.
If currencies are racing each other to the bottom the vital thing is to exit deposits and bonds. Some will exit to land, some will exit to equities, some will exit to real estate, some
will exit to commodities, and some will exit to gold. They each have their merits, and their risks. They are already moving up in price. In fact there’s a lot to be said for a balanced approach involving them all.”
hehe, I was initially going to post that last paragraph, but I was afraid people would think that the whole thing was just a rehash of what I’ve been saying all these years.
It isn’t.