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HashHodler 🍁🪙
@phip420
$btc $btc $btc #nfa
No financial advice Katılım Kasım 2021
629 Takip Edilen285 Takipçiler
HashHodler 🍁🪙 retweetledi
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HashHodler 🍁🪙 retweetledi
HashHodler 🍁🪙 retweetledi
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$GOLD: Weimar Lesson: Paper Gold Went to Zero, Physical Gold Became Priceless
Prices went exponential, meaning prices doubled in days or even hours. Banks could no longer function properly because their balance sheets were effectively destroyed. Loans they issued were repaid in worthless marks, deposits lost value instantly, and liquidity was not there at all.. At this point, paper gold claims collapsed for three reasons. First, counterparty risk: if the bank fails, your claim is worthless. Second, convertibility risk: even if the bank exists, you often could not redeem paper for physical gold. Third, time risk: hyperinflation moved faster than settlement, so even a short delay meant massive loss in value.
This led to a full breakdown in trust. Paper gold was no longer seen as gold, it was seen as a risky promise, something we would consider today as total shitcoin, comparable to LUNA. As a result, paper claims began trading at –30% to –70% discount vs physical gold, depending on the institution. In weaker cases, especially where banks failed or redemption stopped, paper gold went to a LOSS OF 100% (total loss).
At the same time, physical gold and silver completely detached from the banking system. They stopped being “priced assets” and became money itself, and this is what I always speak about. People use to give Gold and Silver a price tag, those people have not understood those metals. People no longer trusted banks or currency, so transactions increasingly happened in physical metals or goods. Silver coins in particular circulated in daily life because they were more practical for smaller payments.
This is where the premium effect exploded. Physical gold and silver were no longer available at any “official” or paper-linked price. If you had physical metal, you could demand significantly more in exchange because it represented certainty in a system where everything else was uncertain. The premium of physical over paper claims reached approximately +30% to +100%, and in extreme situations where paper became worthless, the effective outperformance was infinite.
Those who had physical Gold/Silver have been able to buy entire houses for 1-3 Gold ounces, Huge land for 1-2 Gold ounces, tons of food, enough for a year with 5-10 Silver ounces.. In case of a total blackout, what are you going to pay with ? This is my question to those who keep giving Gold/Silver a price tag in USD.
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