There is a beginning and an end with anything and everything in life!  An alpha and an omega! So with that being said and accepted as fact, could money as we know it die? And with it our relationship to how we see it, spend it, save it and exchange it for goods and services?

There are three fundamentals a currency needs to function as money 1. It needs to act as a store of value; 2. A unit of account; and 3. A medium of exchange. At the present moment element 1. Is continuously decreasing due to the effects of inflation; and of course the second two are still valid; as our currency is still categorised as a unit of account and a medium of exchange in goods and services. However, it does not rule out the possibility that our current global currencies could die.

Throughout world history many currencies have come and gone; in fact, absolutely no currencies from ancient history have survived and as time goes on, the duration currencies survive continues to get shorter and shorter. The euro, for example, is eight years old and is currently having to be propped up by the EU to keep it going. How much longer can the EU do this; particular the stronger EU nations such as Germany and France? And if one takes into consideration that the average life span of a currency presently stands at 30 years, how much longer will or even, can the Euro last?

In recent history we have seen the Zimbabwe dollar diminish to nothing due to hyperinflation, and in Europe there was the devastating case of the Weimar hyperinflation era in the early 1920’s. It was a period in time in which uncontrolled inflation turned Germany from a relatively sophisticated capitalist nation to one that had its middle class exchanging pianos for potatoes.

The impact of the crisis was huge:

• People were paid by the hour, which was then rushed to loved ones so that they could spend it before its value became worthless.

• People had to shop with wheel barrows full of money
• Bartering became common place – exchanging something for something else, such as a piano for potatoes; a practice most common in Medieval times!
• Pensioners on fixed incomes suffered as pensions became worthless.

• Restaurants no longer printed menus because by the time the food arrived the price had gone up!
• The poor became even poorer and the winter of 1923 meant that many lived in freezing conditions burning furniture and MONEY to get some heat.

Adam Fergusson delves into this subject in his book When Money Dies: The Nightmare of the Weimer Hyperinflation. It was recently republished due to itsrelevance to our current global affairs, and as well as a warning to the governors of the world’s central banks with their continuous propensity to fire up the printing press to print more money, otherwise known as quantative easing, in an attempt to boost our economies.

The end result of the Weimer crisis was that by October 1923 the currency supply had grown from 29.2 billion marks at the beginning of 1919 to 497 quintillion marks; and the group that suffered the most – proportional to their income – was the middle class. Their hard earned savings disappeared overnight. They were effectively wiped out!

Something to consider, especially when reading the weekly newspapers, particularly in regards to our pension crisis: Daily Mail, 31^st August – Our ever shrinking pension payouts: Millions now facing the lowest returns on investments since records began.

The rich, on the other hand rich suffered the least because they had sufficient contacts to get food and many were land owners, thus they were able to produce food on their own estates. Not only that but those who held their wealth in gold, watched their purchasing power increase exponentially as they became increasingly more wealthy. And we take this as an example; this is why purchasing gold is so interesting right now, even if it is at an all time high.

During the Weimer era only gold and silver outpaced inflation. The price of gold had gone from around 100 marks to 87 million marks per ounce, an 87 trillion percent increase in price. But it was not price that mattered but the value and the purchasing power that gold and silver provided; it had gone up exponentially.

And this is why savvy or even, cautious investors will continue to purchase gold. As long as there is the danger of our Central Banks flooding the system with newly printed Dollars, Euros and Pounds, gold will continue to be a popular commodity to purchase! Gold, as I have repeatedly expressed, has been a store of value for thousands of years and which cannot be conjured up into existence by the Central Banks. As such it will continue to rise.

Countries such are Russia and China are telling their citizens to buy gold, where as ours is not. In actuality, we are doing the exact opposite, we are selling our gold.  One needs to ask themselves ‘why is there a constant deluge of adverts online, on the tv, radio and in the print media asking for our Gold?’ Seriously, is there something that we don’t know but need to know? If yes, then join me on Wednesday 13^th September at 2:30pm GMT for a Gold webinar and where I will answer this question for you.

To register or join the webinar please go to https://my.dimdim.com/butterflywealthcreation as well as join my gold mailing list by clicking here.

The following are two videos from Glenn Beck, an American conservative radio and television host for Fox News. Very interesting and thought provocative!

If you take anything away from this article, let it be this, during any financial upheaval, credit crunch, market crash, depression, or a currency crisis, wealth is NOT destroyed. It is merely transferred. So the question is to whom will the wealth transfer too? You? What will you do if our money dies? How will you protect your assets from inflation and government interference? Something worth thinking about as anything is possible and we do not know what the future holds so better to be prepared then unprepared. Finally, those who hold onto “real money” (gold and silver), instead of a currency, otherwise known as ‘fiat or ‘fake’ money’ (the €, $, £, etc.), have reaped and will continue to reap the rewards many times over.

To your Financial Success & Becoming Financially Savvy,

Butterfly Wealth Creation

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P.P.S. For information on purchasing Gold please click here