/biz/ - Business & Finance

To the retard shitting up the threads about "Gold will be worthless after hyperinflation" here are a few stats I compiled from the Brazillian hyperinflation of the 80s to mid 90s.

Brazil went through 4 currencies between 1986 and 1994 to the Real where it sits today. The most reliable data I found was from the 1985 days onward, so that's what I went with. The exchange rate of 1 BRL to 1 Cz is established at 1:2,750,000,000.

http://idealsoftwares.com.br/tabelas/tabela.php?id=351
http://www.igf.com.br/calculadoras/conversor_1.aspx

Cruzado (March 1986 to Jan 1989)

March 1 1986:
1986 > $1 = Cz$ 13.84
1oz Gold = $336 = Cz$ 4,650.24

March 1 1987:
1987 > $1 = Cz$20.72
1oz Gold = $404.25 = Cz$ 8,376.06

March 1 1988:
1988 > $1 = Cz$106.80
1oz Gold = $429.23 = Cz$ 45,817.2

Jan 15 1989(Discontinued):
1989 > $1 = Cz$859.25
1oz Gold = $405.00 = Cz$347,996.25


7/1/1994 (Real is implemented. 1 BRL = 2,750,000,000.00 Cz$):
1994 > $1 = R$0.925
1oz Gold = $386.70 = R$357.69

http://www.igf.com.br/calculadoras/conversor_1.aspx

If I bought 1oz of Gold denominated in USD in January 1989 with my Cz$347,996.25 by July 1st 1994 that Oz of Gold would have cost me R$0.1265440000. At that time's exchange rate, that 1oz of Gold would be worth $386.70 US Dollars. A return of 2,827x in five years.
If I bought it in March of 1986, if would have cost me $0,0016909091 in July 1994 money. A return of 223,556x in 9 years.

Note: I do not have historical data for the price of Gold in Brazillian Cruzados (March 1986 to Jan 1989), but we do have data on the exchange rate to USD, and we do have the prices of an ounce of Gold in USD. These values were derived from that.

Do with this what you will.