Historical HyperinflationJul 12 • Categorized as Asset Protection,Investments
What is hyperinflation and how to protect yourself using valuable, rare and strategic metals and silver used in 80% of industry today
by Knut Andersen, Swiss Metal Assets
With a highest monthly inflation of just under 30,000%, Weimar was a true ¨walk in the park¨ compared to the recent 309,000,000% monthly inflation in 1992-1994 Serbia, but especially to the 12,950,000,000,000,000% inflation that Hungarians had to deal with in the aftermath of WWII.
For these and more comparative and recent examples of hyperinflation, particularly relevant now that the entire world is rumored to be getting ready to print more money (Bernanke ¨Operation Twist¨ announcement on Wednesday, June 20 2012 ) see below:
|COUNTRY||YEAR(S)||HIGHEST INFLATION PER MONTH %|
SOURCE : Monetary Regimes and Inflation:History,Economics and Political Relationships by Peter Bernbolz Northampton,Mas:Edward Edgar Publishing 2003
Previously, only precious metals could provide a tangible alternative to paper currency. Now, rare and strategic metals have become so valuable that they make up another asset class available to individuals for protection against inflation and currency devaluation.
Any person who feels that the hard earned wealth they have accumulated is vulnerable to the vagaries of inflation or hyperinflation should seriously consider joining the thousands of people who are partaking in the building of this valuable stockpile of rare and strategic metals.
In the next 5 years, demand for the rare and strategic metals we are stockpiling will have reached a critical level driving up the value of the metals. The SMA stockpile of metals will be a veritable treasure that will be made available to industry at that time.
Just to let you know how important the issues around these metals are; the US DOE, the EU, and The British Geological Survey have over the last 3 years, conducted scientific studies detailing impending shortages and supply interruption of metals essential to these countries strategic, economic, and manufacturing plans.
Seven of the metals in SMA rare and strategic metal baskets are already at supply risk, with the rest vulnerable to interruption in the near future.
All of these factors, including China´s insatiable thirst for these metals to drive their own economic development, have driven up the values of these metals significantly over the past 5 years.
It is common knowledge that China has raised the prices of the metals they do choose to export, and drastically reduced its export of these metals overall, to meet their own needs.
This year the USA, EU and Japan registered a joint complaint against China´s embargo of these metals with the WTO. Unfortunately, according to experts following the drama, China will not have to increase exports unless they choose to because although the metals are primarily used for consumer products, they have many military applications and WTO complaints cannot involve materials used for military applications. China knows this of course.
Even if the WTO rules that China must sell more metals based on the consumer uses for the metals, they do not need to comply, as the WTO has no real enforcement capability and leaves it to complaining countries to create embargos of their own against China to somehow force China to acquiesce. Good luck with that.
This is not particularly good news for manufacturing outside of China where stockpiles are running low. Companies have to consider relocating inside China, with Chinese workers, in order to get the metals they need.
On the supply and demand issue, demand remains strong because in true price inelastic form, consumer goods using these metals in their production have not gone up in price, as such small, trace amounts of the metals are used in each item that industry has been able to absorb the increased prices in the metals without passing them on to the consumer.
With hundreds of millions of new consumers wanting all these products in emerging middle class countries like China and India, demand will remain strong in coming years as supply dwindles, further driving up the value of the metals.
As a US Citizen, whether you are concerned about your 401k or IRA funds or your cash reserves, Swiss Metal Assets rare, strategic and precious metals acquisition and overseas allocated and segregated storage vaults, provide a safe, secure, proven method of protection.
Editors Note: For additional information on this and similar topics, please see PremierOffshore.com