We in Africa have seen much more inflation than those of you in North America, Europe and the rest of the West are aware of. And in certain situations we’ve seen hyper inflation like when the Zimbabwe Govt eventually printed a bank note of $100 trillion dollars … It made the Jewish Weimar republic inflation look like nothing.
We in South Africa suffer from a higher inflation than those of you elsewhere, and it is a PERMANENT FEATURE, which will only get WORSE! COVID-19 is creating a GLOBAL INFLATION unlike anything we’ve ever seen before. This thing is going to CHANGE THE WORLD.
But as a common person, you can counter it quite easily by changing your way of thinking. Also, due to globalism and other things no longer working well, you can’t put your money into savings accounts or bonds or places where you can easily get high returns … and these returns are also likely to get worse.
The key to surviving inflation is to take your money and purchase PHYSICAL THINGS or things that are limited in quantity. e.g. Gold, Bitcoin, etc.
Silver is an investment that is much often touted, but its mostly been a failure and I don’t know of anyone who has had success with it.
Gold is the initial and definite BIG beneficiary of inflation.
Your general approach must be to "invest" your money in physical assets. Buy property, and anything physical which can be resold. Preferably buy something that has a general use and value that others would want even in bad times.
So look for PHYSICAL THINGS to buy because their prices will rise during inflation.
Of course cars are wasting assets, and expect wasting assets to remain as wasting assets.
But try to find things which can be retained and used.
In HYPER INFLATION (which is still far away so don’t panic), you will keep almost NO CASH. In hyper inflation you will run out and buy things immediately … same day or same week before your cash loses value. You will "invest" in food, and household stuff.
But BUY PHYSICAL THINGS … that’s the key to surviving inflation because money and financial tools will no longer work.
So get into that mode of thinking.
Inflation IS COMING … the question is: How much and how soon? It may take a while for it to begin kicking in, but the Fed’s unbelievable money printing, to keep the system functioning … is the key driver. And it will now impact the whole world.
We in South Africa will remain in a worse position than you, so we will feel it before you do.
Its a topic we’ll return to.