Zimbabwe has introduced a new gold-backed currency called ZiG – the name stands for “Zimbabwe Gold”.
Zimbabweans have 21 days to exchange old, inflation-hit notes for the new currency.
Glaringly absent is anything about whether you’ll be able to actually walk into a Zim bank (which I imagine as being like a cross between a bank and a 7-11 in a bad neighborhood) and redeem that paper for actual gold. Because…if you can’t, then you’re right back to a faith-based currency.
I’ve actually stopped buying gold and silver for right now because I just don’t wanna spend that kind of money. But, Im both delighted and terrified to see how the metals I have are increasing in value. (Or, more accurately, how the value of the metals is staying the same and the value of the currency is declining.)
Just another fake fiat currency masquerading as money. Not redeemable in gold and backed by nothing more than air and a promise.
The value of gold and silver never changes and buys the same amount of goods and services as it did 100 or 1,000 years ago. What changes is the value of the fiat currencies… all going down. Value precious metals in ounces, not fake currency prices.
We will look back in the near future and wonder why we didn’t ‘back-up the truck’ when gold was only $2350 per ounce and silver $27. I think the coming hyperinflation will send gold to 6 digits and silver to 5 digits.
I Dig Au:
Let’s hope not – It will mean that there is nothing left to buy with your pile of PM’s!
It would be great if the ship could actually stay afloat, even if rudderless…
Ceejay
It’s definitely a world I don’t want to live in when PMs go parabolic, but PMs will be the only money people will transact in. It is mathematically impossible for the ‘dollar’ to stay alive and that ship to stay afloat. Look at Weimar Germany for what our near future will look like and prepare accordingly.
Unlike Weimar Germany, if our dollar goes into a hyperinflation environment the rest of the world would follow. The only thing of value will be consumables such as food and energy. I also think we would see the bankers and wall street clamoring for a new world electronic currency as the only way to save the “world” economy. Gold like fiat currency only has value if people believe it does. Silver on the hand has industrial value as a consumable. However, I do not want to ever find out if you or I were actually right!!!!
I wounder who they have printing the new notes? Only the old 100 Trillion what-ever-it-was-called-that-week ones they use to have printed at the worlds top printers in Germany and they ran off with out paying the last bill.
Ah. Aren’t these the idiots that did such a piss poor job of managing their economy they had to issue a 3 billion dollar note. Must have attended the Joe Biden school of Economic Stupidity. AOC is graduate as well.
I have some 100 Trillion ‘dollar’ Zim notes that Jim Rawles sent me with one of his books.
They even have a spend before date on them.
Local gun show today asking 24x face value for 90% U.S. pre ’65 coinage. Dude didn’t even really wanna sell (but was) and said he thinks it’ll top 30x face within a 2-3 month timeframe. I think he might be on the conservative side with that estimate. But like you CZ I am putting the fiat into other tangibles. Got 9mm at $10 a box of 50 (brass, 147gr fmj) just like the good ol’ days. A win for me.
Rhodesia used to be one of the finest places in the world to live,wonder what went wrong?
The communists took over and killed the only productive people there.
The only country in Africa that had a better economy was South Africa. And now they are in trouble as well.
Rhodesia was one of tbe worlds largest exporters of nickel.
When Robert Mugabe came to power and seized all the farm land from the White farmers and gave it to the black people. Trouble was they didn’t know dick about farming. So it followed that very soon a severe famine resulted. I wonder how many people in both Rhodesia and South Africa would jump for joy at the return of apartheid in the hands of white minority politicians if it meant returning to the days when they knew no want. Had three meals a day. The way things are now. The white governments were less of a threat then the current thugocracy that rule both Zimbabwe and South Africa.
Much too little, Much too late….
The body may still twitching, but the patient is beyond help.
Let’s hope the West learns enough from this to stop Wokes and other idiots following their example.
Ceejay
I haven’t bought any PM’s in a few years. Can’t say I especially plan to. However knowing that the value of the ones I have put back is going up doesn’t suck.
Picked up 40 ounces of silver from Jmbullion. Paid more than I wanted but I think it will have more value than gold. Setting a value when the dollar is toilet paper might be difficult and will be set locally. Bushel of corn will cost more if you need to haul it there.
I don’t know if this got eaten by internet gremlins the first time I tried posting it, but FWIW:
Zimbabwe making ZiGs is like changing the gas company’s name to Exxon in the 1980s: it’s still the same old gas.
If you can’t exchange ZiGs for gold, it’s not gold-backed, it’s gold-linked. Look at the free market exchange rate of gold to dollars from 1933-1971 to see what that looks like.
At the end of the day, the ZiG is backed by “the full faith and credit of Zimbabwe”. Try not to burst laughing and fall down on the ground if you ever say that sentence out loud.
The new bills will still be fiatbux any way you slice it, and worth nothing but love and kisses, and whatever any poor schlub will give in exchange.
I suspect the average Zimbabwean doesn’t want them either, but has no choice.
The old Zimbabwean Trillion dollar notes are worth more now as collector’s items than they were ever worth as actual currency, as befits all such finely-engraved toilet paper.
The trouble comes when the jig is up with our version.
Then it’s truly “interesting times”, in a Chinese curse sort of way.