How to Prepare for Hyperinflation

  • Security: There are many things you can do to improve home security.  Good fences and gates, dogs, solid doors and windows, window bars, cameras, lights, alarms, etc.
  • Supplies of Food etc. : Governments usually put on price controls and make shortages of all sorts of things. Because of this, having some stuff stored up ahead of time can make a huge difference.  Food and water are good things to have.   Life is better with toilet paper, laundry soap, etc.  Today you can probably afford to buy a “one year supply of food” and, if there is hyperinflation, it could be a lifesaver. If your currency is dropping fast, then you are better off buying extra canned goods than holding the currency.
  • Gold and Silver: Over time a hyperinflating currency is accepted less and less.  Gold and silver hold their value and are accepted more and more over time.   There is probably someone who would trade them for the local currency if you need local currency.   If there is hyperinflation, by the time you trade in your gold you will get far more local currency than if you had just saved some currency instead of gold.
  • Investment Options: If hyperinflation comes, bonds are the worst thing to hold.  To get the present value of the bond, the future value is discounted by the projected inflation rate over the time till maturity.  If there is high inflation and many years, the bond can be discounted to almost nothing. Cash is not good to hold as it is dropping, though not nearly as fast as long term bonds.  Governments may freeze bank accounts, so money in bank accounts could end up trapped for many months and worth far less by the time it can be taken out. Stocks are not safe because governments usually make life very hard for companies, with price controls and other laws.  If all your costs are going up fast and the price you can sell at is fixed by law, your company will be in trouble.  Many companies will go under. Rental properties are particularly bad during hyperinflation.  The government rent controls keep rents fixed.  At the same time the costs for running the property are going up fast.  People view the landlord as rich and so he gets little sympathy for his problem of costs going up faster than income.  It is not good to be a landlord during hyperinflation and rental properties can sell for crazy low real prices.
  • Backup Transportation: If there is hyperinflation and price controls, you may not be able to buy gas sometimes.
  • Alternative sources of energy such as solar, propane, backup generator etc. 

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