Q: What happens to the value of hard assets (Gold, real estate) when the currency used to buy them is devalued ?
It’s not just hard assets, it’s all assets.
Let’s do it for simpler scenario. Say the Dollar continues it’s slide to half it’s current value. Say next Christmas, the Dollar trades at 0.25 Sterling, 0.37 Euro and the Chinese float the yuan and it trades at 3.9 Yuan.
How much does the $19.99 Shirt manufactured in China and shipped on EU owned ships from Target cost?
A. $9.99
B. $19.99
C. $39.99
Gas will do the same thing.
As will the chips in the computers we’re all using.
