10 Incredible Photos From Venezuela Show The Severe Risks Of Currency Devaluation
- Paper currency in Venezuela is now worth less than toilet paper- Incredible Reuters photos highlight the disaster that can become of fiat (both paper & digital) currency devaluations- 2,600,000 paper or electronic bolivars for one roll of toilet paper- 14,000,000 bolivars for one chicken highlights the disastrous decline in the standard of living in the socialist dictatorship- One gold coin (1 ounce) could buy over 1,200 chickens or a small chicken farm producing poultry and eggs- Economists including the IMF are predicting that Venezuela's inflation rate could exceed 1,000,000% this year- Huge amounts of currency to buy basic food supplies and necessities such as toilet paper and babies nappies- Venezuelans who own livestock, food, farms, land, bitcoin and hard assets such as gold and silver have protected their standard of living in the hyperinflation
A roll of toilet paper next to 5,000,000 bolivars which is its price today: The equivalent of less than 1/1,200th an ounce of gold bullion with gold trading at just over $1,200/oz today. Image source: Reuters
A kilogram of tomatoes next to 5,000,000 bolivars, its price today. One ounce of gold in coin or bar format could buy 1,200 kilos of tomatoes. Image source: Reuters
A chicken next to 14,600,000 bolivars, its price today. One gold coin or gold bar (1 ounce) could buy over 1,200 chickens or a small chicken farm producing poultry and eggs. Image source: Reuters
Pictures: Carlos Garcia Rawlins. Source: 10 Must See Photos from Reuters The Wider Image
Editors Note: The lesson of history, especially the history of currency and money, is that we never learn from history. With currency devaluations being seen throughout the world today, we are repeating that errors of the past. Fail to prepare, prepare to fail.
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24 Aug: USD 1,189.95, GBP 928.76 & EUR 1,029.43 per ounce23 Aug: USD 1,187.30, GBP 923.24 & EUR 1,027.61 per ounce22 Aug: USD 1,196.85, GBP 928.25 & EUR 1,032.88 per ounce21 Aug: USD 1,194.10, GBP 931.28 & EUR 1,036.12 per ounce20 Aug: USD 1,188.75, GBP 933.29 & EUR 1,042.41 per ounce17 Aug: USD 1,176.70, GBP 925.59 & EUR 1,032.79 per ounce
Silver Prices (LBMA)
24 Aug: USD 14.62, GBP 11.37 & EUR 12.63 per ounce23 Aug: USD 14.63, GBP 11.34 & EUR 12.62 per ounce22 Aug: USD 14.81, GBP 11.49 & EUR 12.77 per ounce21 Aug: USD 14.78, GBP 11.52 & EUR 12.83 per ounce20 Aug: USD 14.76, GBP 11.57 & EUR 12.93 per ounce17 Aug: USD 14.66, GBP 11.54 & EUR 12.87 per ounce