Dear Exchange users, I need of your insight to plan ahead of the very unlikely but (popular amongst doomsayers) hypothesis of Hyperinflation.
Today this scenario did not let me sleep...
What would be the portfolio of assets protecting us from Hyperinflation and in this scenario I want that you assume that governments issue a decree by which all gold and crypto will need to be delivered to governments. I want also that you assume the scenario that there has been a wave of bankruptcies.
If you can also present intermediate scenarios I would very grateful, but in any of those scenarios there must a component of regulatory control of both precious metals and crypto.
My opinion (let me know if it makes sense)
I have talked to a friend from Argentina and he told me that the first sign of Hyperinflation would be in assets such as stocks and currencies. At that time the price of gold, crypto etc should have increased. Question: Would you sell part ahead of a possible regulatory backlash in such scenario? And If so, what would you buy? Land and properties?
Afterwards, once the governments try to have the system back in control they decide to implement regulations of confiscation in precious metals and bitcoin. What is then the hedge against this scenario? I have heard that stocks could be a hedge. However, what about Silver. Can we buy slyer anonymously at this point in time? And how much? In Germany until 2019 one could buy up to 9,999 of EUR in gold (now 1999 EUR only); in Austria the limit is still 9,999 EUR and in Switzerland is still 15,000 CHF. However, what about silver?
I think the best hedge against hyperinflation is a garden with vegetables and all you need to eat in the end in order to survive in such a catastrophic scenario? Factually true, but jokes aside:
Any ideas? Maybe gold miner stocks could be a solution? Because of the security protection regulations? If so, which gold miner stocks do you think are shield against a hyperinflation environment? If so, why to buy gold at all when you can buy the miners?
I am trying to understand what can be realistically done in such a hyper inflationary event. I do not think that the solution is simply buy gold and keep it "under the mattress".
Many thanks for your insights in advance and I hope this will open an interesting debate.