Billion dollars in $1 coins

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Paladex's picture
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Billion dollars in $1 coins

Saw this story on and thought it might interest some of you who advocate stocking up on coins as insurance against dollar hyperinflation.

For the uninitiated, the theory is that in the event of hyperinflation, the government will issue new currency that will be worth x times the amount of old currency (e.g. $1 "new" dollar = $1,000 "old" dollars), but that coins - because of the expense involved in manufacturing them - will simply be redenominated as "new."

In this example, $5,000 in coins would still be worth $5,000, while $5,000 in paper money would only be worth $5.

This would be an incredibly advantageous exchange rate for anyone with significant stores of coinage. And, of course, dollar coins are a more effective store of wealth than any other coin (although nickels currently contain about .07 worth of metal, so a lot of folks are stocking up on them as well).

Edited by admin on 11/08/2014 - 06:06


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