How to survive hyperinflation? What investment to make…

Inflation is the decrease in purchasing power of money. If you bought 1kg of rice for 1$ 10 years ago, can you still buy the same quantity for the same amount? This is in a simple form, inflation. But, what if this money devaluation is out of control? What if the prices are increasing every hour? Such conditions are known as hyperinflation. During a hyperinflation crisis, the value of local currencies erodes real fast. This puts a lot of pressure on buying power of people and possibly causes a crash in the economy. Venezuela and Zimbabwe-like countries have faced such crises in the near future. This could occur in any country. So, preparation is important. Let’s see how to survive a hyperinflation crisis?

How do you know the hyperinflation crisis is coming?

Economic crises don’t occur overnight. Typically, it will take months or even years with warning signs before the economy runs into a crisis.

Keeping an eye on your country’s inflation rate is the best way to predict a possible hyperinflation situation. Especially, as a response to an ongoing crisis, a government may start printing an excessive amount of money. Printing money further devalues the local currency in international markets.

If you suspect your country is facing such a crisis and if the inflation rates are increasing rapidly it is better to take precautions.

What happens during hyperinflation?

The price of every goodwill increases rapidly. But, your salary will remain the same. Let’s consider a scenario.

Let’s say you have a chronic disease and you need a medicine named ABC. Before the crisis, this medicine cost 50$ per month and your salary is 1000$. So, it is affordable.

But, now your country is facing a hyperinflation crisis. So, yesterday the price was 200$ and today it is 500$. What will be the price tomorrow? Who knows?

Why do prices increase during hyperinflation?

Price in a market is decided by two main factors. Supply and demand. In an open economy, it is believed that the price is decided by an invisible hand. This means the prices may increase when the demand is high. This increase does not have any government intention.

If the ABC drug is an imported good from the beginning of the crisis it will be rare to buy in the market.

When something essential is rare to buy, people start to panic buying. Panic buying increases the demand rapidly.

When demand is high prices increase further.

How to survive a hyperinflation crisis?

Surviving a hyperinflation crisis is not an easy task. It requires years of planning and preparation. You will need to work and plan twice what others do for a living.

During a hyperinflation crisis, most goods will be rare to buy in the market. Especially imported goods will be rarer.

So, stocking such goods seems to be an option. But, you will need a lot of money to do such a thing.

If it is possible, transferring to some other country will simply solve your problem. But, if you can’t leave your country then you will need a proper plan to survive.

Stock your goods to survive the hyperinflation crisis

Stocking goods is the easiest thing you can do. If you need any specific medicine, maintain stock for a minimum of one year. If it is possible it is better to stock for a longer time.

Even if you don’t have a disease it is better to stock essential medications such as pain killers, antibiotics, and day-to-day medicine.

There may also be a food shortage during the hyperinflation crisis.

What are my best options to survive hyperinflation?

You have to consider three things. First, you need to establish a self-sufficient food supply. Also, like security, you need to store some money or valuable things. Next, you have to invest in some secure investment.

Establishing a self-sufficient food supply

Adopting an off-grid living style is the best option. Start to cultivate in your home garden. Before the crisis, consider stocking some fertilizer supplies and seeds. But, anyway, you will have to adapt to a self-sufficient fertilizer supply.

Build a compost bin. Collect your waste materials in the bin. This will fulfill your organic fertilizer requirement. However, depending on the type of crop you cultivate you may need to provide some additional Nitrogen, phosphorus, and potassium fertilizer. If you can find mineral stones that contain those nutrients in your local area they will be a good alternative for chemical fertilizers.

What currency to stock to survive hyperinflation?

No matter how much local currency you have it will be worthless within a short time. So, as soon as you notice a hyperinflation situation, start to convert your local currency into some international stable currency.

Considering the long-term situation please note that even the most stable currencies can devalue over time due to inflation.

So, what is your best option? Gold seems to be the best investment during a hyperinflation situation. Unlike any currency, gold does not devalue due to inflation. But, gold prices increase over time, no matter what happens.

In 2000, the recorded gold price per ounce was 280 USD. But, today it is 1,970 USD.

What investment to make to survive hyperinflation?

It is always better to invest in international markets. As an example, you can try cryptocurrency investments. Or you can invest in a foreign stock market.

Even your local stock market will be a good option considering the long-term situation. However, at first, the local stock market will collapse. But, it is possible to recover after a few years. Especially, focusing on the companies which do exports and earn in foreign currencies.

Real estate is also the best option which you can try. The land in the world is limited and it is not renewable. So, no matter what happens to an economy the prices of real estate will increase over time.

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