My name is Shawn Ozbun, and our goal is to keep you up to date with what’s going on in the world of Gold and Silver by providing you with current news and precious metals pricing.
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Now before I get into today’s topics and comments, lets take a quick look at the precious metals pricing.
Gold - $1396.67 Up $5.37
Silver - $23.57 Up $0.07
Platinum - $1497.50 Up $2.00
Palladium - $696.00 Down $1.00
Hyperinflation through history: Nations that have had it much worse
Hyperinflation is a particularly brutal phenomenon that has ravaged economies in the past. It occurs when a country experiences an extremely high rate of inflation that accelerates over time and is sustained over a long period. In such a situation, the official currency quickly loses value against foreign currencies and there is a sharp rise in the general price level.
Germany (1921): Post First World War Germany was hit by one of the worst cases of hyperinflation in recent history back in 1921. The German Mark fell from 4.2 marks to the dollar to 8.91 marks per dollar during the First World War but paying war reparations caused an economic collapse with the exchange rate rising to 4,200,000,000,000 marks per dollar by the end of 1923. The rate of inflation was 3250000% per month. Prices for daily commodities doubled very two days. Currency became worthless with kids using it like lego bricks.
Hungary (1944): Hungary hand an even worse time and went through the worst inflation ever recorded after the Second World War. The highest denomination of the Hungarian pengo available in 1944 was a 1000 pengo note. By mid 1946, 100,000,000,000,000,000,000 notes were in circulation. When the pengo was finally replaced in August 1946 by a new currency, the total value of all the Hungarian currency in circulation in the entire country was worth less than 1/1000th of a US dollar.
Zimbawe (2008): Though hyperinflation is comparatively less frequent in the twenty – first century, Zimbabwe’s inflation woes caused the country to completely abandon the currency. When Zimbabwe became independent, the ZWD was worth about $1.25. By July 2008, the exchange rate was 688 trillion ZWD to one dollar. A hundred trillion bank notes were in circulation and ATM machines struggled with arithmetic problems as customers withdrew billions and trillions of dollars at a time. Finally, the currency was abandoned after inflation rates of 7.96 billion percent in Mid Nov 2008.
Hyperinflation is usually caused by war or sociopolitical upheavals and is extremely traumatic for savers and investors – as all their savings become worthless. Hyperinflation usually ends with the national government redenominating the national currency or using a foreign currency as a national unit.
Suddenly, a 20% depreciation doesn’t seem that bad, does it? Read More....
Gold 'will hit $1,500’ as investors seek safe haven
Gold could climb to $1,500 (£968) an ounce if military action is taken against Syria, City analysts predict.
The yellow metal climbed above the $1,433 mark on Wednesday, its highest level since mid-May, as tensions around Syria increased its allure as a “safe haven”. On Friday it ended the week at $1,395 against its late-June trough of $1,180 an ounce.
“Safe-haven and geopolitical hedges are back in vogue,” said analysts at HSBC. The metal’s price has passed both its 50-day and 100-day moving averages this month, setting it on course for the $1,500 mark. “Gold is now decisively through previous resistance and is pushing higher towards the $1,500-$1,532 area,” said Citigroup’s technical research team in a recent note. Read More...
Family finds $300,000 of gold treasure off coast of Florida
A Florida treasure-hunting family struck it rich over the weekend when they discovered an estimated $300,000 worth of gold coins and chains off the coast of Fort Pierce.
"This is like the end of a dream" Rick Schmitt who found the sunken treasure with his family and fellow diver Dale Zeak told the Sun-Sentinel.com .
Schmitt and wife Lisa along with their grown children Hillary and Eric uncovered the treasure 150 yards offshore which includes 64 feet of thin gold chains, five gold coins and a gold ring.
"What's really neat about them [Schmitt family] is they are a family, they spend family time together out there and the most amazing part about them is they always believed this day would come," Brent Brisben whose company 1715 Fleet - Queens Jewels LLC owns the rights to the wreckage told Reuters.
The treasure found by the Schmitts comes from the wreckage of a convoy of 11 ships that were destroyed in a hurricane off the coast of Florida in 1715 while en route from Havana to Spain. The 1977 film "The Deep" and the 2008 "Fool's Gold" film were based off of the 1715 wreckage.
According to the ships' manifests, $400 million worth of treasure was on board and so far only $175 million has been found, Brisben said. Read More...
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[Disclaimer] Shawn Ozbun is not a licensed financial adviser, there is risk associated with all investment including gold and silver. You should seek advise from a licensed financial expert before making a purchase.
