Saturday, December 25, 2010

Don't Buy Real Estate for Hyperinflation!

50 Million Mark Note

Some people think their property ownership will get them through a hyperinflationary period. Apart from the value of food grown in the backyard garden, these homeowners couldn't be more wrong! Check out the table below which details how the value of real estate plummeted during the Weimar Hyperinflation 1922-1923 in Germany, while the prices for food and clothing soared.

Housing/Rents as a Percentage of Household spending

WEIMAR - Living Costs, Family of Four

Weekly Cost : Total in Marks : - - - - Percentages - - - -
========== . . . . . . . . . . . : Food / Housing / Clothing
1914 (prewar) : ............ 21.5 : 46.5%/. 25.6% / .. 27.9%
January 1920 : .............. 164 : 52.4%/. 04.9% / .. 42.7%
January 1921 : .............. 218 : 63.8%/. 04.1% / .. 32.1%
January 1922 : .............. 396 : 64.8%/. 02.8% / .. 32.3%
July...... 1922 : ............ 1232 : 56.8%/. 01.1% / .. 42.0%
January 1923 : .......... 25,123 : 52.1%/. 01.2% / .. 46.7%
July...... 1923 : ........ 654,608 : 59.8%/. 00.4% / .. 39.8%
Nov. ..... 1923 : ... 14.408 Bn. : 64.9%/ 00.26% / .. 34.8%

source: Hyperinflation handout

Here it is : 0.26%, in Nov.1923, down from 25.6% in 1914.
That's 1/100th of its original percentage - an enormous collapse !!


Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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1 comment:

  1. They are all superbly attractive. Makes me want to put my home on the market and move!
    real estate

    ReplyDelete