/biz/ - Business & Finance

>>30204631
>Who's trading silver for essentials?

You trade silver for the local currency, buy your essentials, then live off of that until next time you need to trade your silver for essentials. How hard is this concept to understand?

People in Venezuela aren't exchanging goods and services in Silver en masse, you're selling yours for the local currency at the current market rate, which is probably 30% higher than yesterday's market rate because your currency is worthless.

I put this together last night. Look at the price of Gold in 1986 Brazil and the price of Gold in 1989 instead and compare at what 1oz of Gold bought if you had bought in 86 versus 89. That wasn't nearly enough as crazy a situation as Venezuela, but still the purchasing power of Gold went up, while the currency became progressively worthless. These weren't even the worst days of the inflation crisis, just the ones I picked to study.

Pure autism at this point.

I wonder if I'm comparing apples to oranges here. Should I compare prices from 1986 to the prices in 1994 after the currency change to understand whether gold appreciated in real value or not? It was stronger in the 80s than in the 90s so some of those ratios may be fucked due to that.