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<p>[QUOTE=&quot;SilverSurfer, post: 788484, member: 21603&quot;]I&#039;ll bite too.&nbsp; If hyperinflation happened, your gold would be severely undervalued.&nbsp; As the money to buy it can buy more and more in terms of dollars.&nbsp; So, if you had 10,000 dollars total U.S. money (think of it as billions of dollars or whatever, just for arguments sake) and gold cost 10$.&nbsp; Now the money supply goes to 20,000 but nobody realizes it, so gold stays $10.&nbsp; Then the supply goes to 40,000 and gold makes a tiny jump to $15 and everyone is excited, but they are losing out.</p><p><br /></p><p>Likewise, people will be jumping jobs left and right.&nbsp; Most employers aren&#039;t willing to give raises that compare to inflation.&nbsp; Inflation goes up 4%, employer gives a 2.5% raise.&nbsp; With hyperinflation, why take a 8% increase in pay, when you can quit and go across the street and get a 30% raise.&nbsp; Of course, there will have to be jobs available for this to happen.&nbsp; </p><p><br /></p><p>Sooner or later, the hyperinflation will be put to rest.&nbsp; 10,000 dollars will be 400,000 dollars.&nbsp; Gold will just be $100, lagging 75% of it&#039;s value.&nbsp; The dollar bill will look very different, as will coins.&nbsp; Eventually, things will return to &quot;normal&quot; and people will start to use the new money.&nbsp; Those that kept money will see their $10 as now worthless.&nbsp; Those that took that $10 and bought the gold will now see $100, which is better than the $10 they could of been holding.&nbsp; As the economy improves, more and more people will want to buy gold, maybe as jewelry, or investment.&nbsp; The price will eventually get to where it should be at $400-$500.&nbsp; And then you can sell it, maintaining the orginal $10 &quot;worth&quot;.&nbsp; Now, imagine if you kept the $10, instead of buying the gold.&nbsp; That seems pretty foolish to me.</p><p><br /></p><p>Of course, this is all hypothetical.:rolling:</p><p><br /></p><p>One last point.....we are talking about U.S. hyperinflation.&nbsp; Remember, there is a world economy, and the price of gold will be held up by other countries who aren&#039;t experiencing hyperinflation.[/QUOTE]</p><p><br /></p>

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