Value of Gold in Zimbabwe (Gold for Bread)
here is a 7 minute video posted march 9, 2009.
What a sad situation. A lot of lessons there.
One interesting thing though is that they have suffered the most ridiculous inflation, but a loaf of bread goes for 0.1g of gold. At $900/oz * 1oz/31.1g * 0.1 = $2.89 for a loaf of bread, or about what one would pay in the US. Now there is a lesson, even in the most dire circumstances gold seems to hold a somewhat fair value.
From the video, it seems to me that the gold is being dug to buy imported goods. I don’t see any exporting goods in their situtation. When all the gold is used up, what will there be left? They say they can’t grow food there, so if not gold any longer nor food, then what will they make? That remains a problem unsolved.
Let’s hope they get rid of Mugabe before the gold runs out.
Fellow contributors may enjoy this cartoon which appeared here in the UK Daily Mail a couple of weeks ago. (This was the first meeting of British Prime Minister Gordon Brown with Obama.)
"Let’s see now. Apart from corrupt bankers and politicians your country is broke, yet you’re still clinging to power…How can I help you, Mr Mugabe ?"
That was eye opening… Here’s another one even more explict
one argument i hear from people about holding gold is that you can’t eat it. this video is the counter-argument to that. you can mine gold to trade it for food that you can then eat. therefore, in times like these it is either valuable to hold gold or have the ability to grow your own food.
my exit strategy for holding gold is to convert my gold into food processing equipment. this is not a talent that i have learned yet so i hope things don’t get too bad too soon. but the preparations are taking place.
nkdroth, i could only watch 12 minutes of the video. it’s too upsetting.
i don’t see a scenario that like unfolding our country because we have vast amounts of farmable land, the folks in the sand states will just be forced to migrate.