Venezuelans Turn to Gold Nuggets as the Local Currency Implodes

The Venezuelan government recently lopped off six zeros from its hyperinflating currency, the bolivar. The highest denomination currency note of 1 million bolivars, worth less than $0.25, was replaced by a one-bolivar note. At the same time, a 100-bolivar note, worth about $25.00, was introduced as the new highest denomination of the bolivar. The currency conversion was designed to spare the government the embarrassment of having to issue a 100-million bolivar note to enable people to purchases everyday items without having to carry around bundles of notes, given that the price of a loaf of bread had risen to 7 million old bolivars. Of course, the arbitrary scaling down of the denomination of the currency will not slow inflation, because the new currency notes can be printed just as cheaply as the old. The bolivar has already lost 73 percent of its value in 2021 alone and the IMF estimates the annual inflation rate will reach 5,500 percent by the end of 2021.

MORE

*****

Might be worth your time and effort to accumulate a little gold yourself with the way things are going.

There are online dealers, but they generally charge a premium per coin or bar as well as a State tax for your entire purchase, driving the price over a hundred bucks or more above spot which at the time of this writing is $1785 per troy ounce - a troy ounce being 31.1034 grams. For instance, one reputable online seller charges a premium of anywhere between 60 and 90 bucks per piece, then there's taxes, and let's not forget shipping, handling and insurance - I don't know what that'll run you because I never could get past the premiums. 

Check around and find yourself a hobbyist coin dealer and buy from them - it'll be strictly a cash transaction, but it'll keep the government out of your back pocket. I've seen coin and gold dealers at every gun show I've been to. Coin shops, I know nothing about - they may not charge you a premium, but I can just about bet they'll charge you a sales tax.

Buy 1/10 ounce coins. Not only is it a little less painful buying those one or two at a time rather than shelling out a couple thousand bucks for a one ounce coin, but if the economy does collapse and you're using it as currency, it'll be a whole lot easier getting change for a $235 coin than it is for a $2000 coin. Yes, smaller denominations are more expensive to buy than larger ones, but gold buyers are also more receptive in buying back smaller coins than larger ones. You can figure on getting eight 1/10 ounce coins for the same price of a 1 ounce coin, but when it comes time to sell, you can sell those eight coins back to your seller for the same price as a 1 ounce coin. 

Stick with established and well recognized coins - Gold Eagles, Britannia, Maple Leafs, Krugerrands, shit like that. Minted coins are always a little more valuable than bullion gold of the same weight. Commemorative coins may look cool, but your Donald Trump coin is also going to come under a hell of a lot more scrutiny when it comes time to sell.

If you prefer bullion instead, there's  cute little 1, 2.5, 5 and 10 gram bars as far as smaller sizes go. Just make sure they are certified and sealed in the packaging they come in - they don't have the fine detailing that minted coins do, and a lot of dealers won't buy them back unless they sold them to you to begin with and you have a very trusting relationship with them.

Now, after all that, don't take my word for shit. While I've dealt quite a bit with gold buyers back in my placer mining days, that was all raw gold and that's a whole 'nother ball game. 

If you have any questions, find a gold or coin buyer/seller and talk to them. I've never met one that wasn't a straight shooter - they have to be, in that business their reputation is everything.