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The Weimar Republic Hyperinflation and Precious Metals

The Weimar Republic was the German State between 1918 and 1933. One of the events that the Republic is best known for is the hyperinflation during the period that wrecked the economy and set in motion events that are commonly thought to have laid the groundwork for the rise of Hi**er and WW2. Bullion TP examines what the hyperinflation during the periods of 1921 and 1923 was, what its causes were, and how precious metals like gold and silver did over the time period.

The Weimar Republic was the regime that took over as WW1 ended and The People of Germany rebelled against Kaiser Wilhelm II. The new Republic had high hopes but it was plagued with the legacy problems of the past economic and financial blunders of the former government. Germany’s answer to finance WW2 was to suspend the gold standard and to then finance the war via borrowing. The German government believed and was betting that it would win the war and be able to repay the debt with reparations extracted from the losing parties. The opposite occurred and Germany found itself owing absurd amounts of reparations ($26.3 billion) to the Allied powers through the Treaty of Versailles.

The Weimar’s answer to paying the reparations was the purchasing of foreign currency with their printed paper marks as the Allies would not accept the rapidly devaluing German currency. This started in motion the hyperinflation that was witnessed by the devaluation of the German Mark value from 320 marks to the U.S. dollar in early 1922 to 7,400 German marks to the U.S. dollar by December 1922. This hyperinflation wreaked havoc on the average German citizen and made the cost of everyday items nearly impossible to afford. As the German mark was effectively worthless by late 1922 and the Weimar Republic was incapable of buying foreign currency, France and Belgium seized the Ruhr valley industrial area and were intent on taking their reparations in physical goods. The hyperinflation got so bad that a loaf of bread in 1923 cost 200,000,000,000 German marks compared to 160 marks at the end of 1922.

How did Gold and Silver fair during this time period? They maintained their purchasing power and it actually increased during the time period. An ounce of gold traded for 170 marks at the beginning in early 1919, but by November 1923 one ounce of gold sold for 87 trillion marks. Over the five-year period that included hyperinflation, the gold price increased 1.8x faster than the inflation rate. Silver went from 12 marks in 1919 to 544 billion marks by 1923. While profiting from gold and silver investing by the relative increase in purchasing power was very possible during the Weimar Republic, survival was of greater importance to the people living through it. Gold and silver wealth savings allowed those who held these precious metals to afford the rapidly rising cost of their everyday items as they simply held their value better as not susceptible to manipulation through creation out of thin air as fiat currency is.

As we approach our own potential hyperinflation time period, with inflation rising rapidly and an incompetent and deeply corrupted federal government passing a $1.2 trillion infrastructure bill and a $3.5 trillion budget incoming, it is no surprise that investors are increasingly turning to precious metals with a focus on physical possession. The dirty little secret that history continues to tell is that governments are typically the manifestations of Oligarchic greed, power, corruption, and incompetence as their money buys them and their bureaucrats out (at cheap prices). In short, governments do not care about their people unless The People control them and force them to do so. The People desperately need to regain control of the United States and throw off the chains of the Deep State Oligarchy and their corrupt monetary system but until the will to do that is sufficiently mustered, investing in gold and silver along with other precious metals acts as a hedge against the same reckless insanity of the incompetent, unethical, and immoral “elite” class that led to the Weimar Republic’s hyperinflation.

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Hoxne Hoard: Roman Gold and Silver Found in Britain

Wouldn’t it be great if searching for a lost hammer led to a massive find of gold and silver coins from the Roman era? That is exactly what happened in 1992 to Suffolk county tenant farmer Peter Whatling who, after having lost a hammer, asked his friend Eric Lawes, a retired gardener and amateur metal detectorist, to help him look for it. The duo did not find the hammer but quickly found silver spoons, gold jewelry, and numerous gold and silver coins before contacting both the landowner and the police (talk about honesty!). The next day a team of archaeologists arrived at the site to do a rushed excavation. The area was searched with metal detectors within a radius of 30 metres (98 ft) from the initial discovery. Peter’s hammer was found during the search along with the Hoxne hoard and is now on display as a historic item.

The Hoxne hoard was concentrated within a small region around where a decaying chest had been found. Items had been grouped together in a deliberate fashion to organize them. The British Museum claimed all of the items and categorized them there. They found, in total, 569 gold coins, 14,272 silver coins, comprising 60 miliarenses and 14,212 siliquae, 29 items of jewelry in gold, 98 silver spoons and ladles, and a variety of bronze and silver items of various size and note. The hoard was valued at £3.59 million or around $5 million based on 2019 prices of precious metals. The UK has a law that allows for the finders of treasure to be compensated with its value when purchased by public museums so Lawes split the reward with Whatling.

The hoard’s coins were minted across the Roman empire, spreading from Antioch in modern Turkey across Europe to Hoxne itself and were minted under three Roman dynasties of Emperors including the Constantinian, the Valentinianic, and finally the Theodosian emperors. The hoard is thought to have been deposited starting around 408 AD and was aggregated and buried during a period of great turmoil in Britain that included the collapse of Roman authority in the province, the departure of the majority of the Roman army, and the first of a wave of attacks by the Anglo-Saxons in the region.

Analysis: First, the Hoxne Hoard demonstrated the widespread importance of the bimetallic monetary system that existed during the Roman Empire that allowed the empire to flourish for so many centuries as well as the overarching point that gold and silver have been heavily valued, aggregated, and stored for wealth preservation for millennium now. The Roman Empire was the result of the conquering and aggregation of several different cultures and countries into one unified system that all utilized precious metals in trade

It is not surprising that the hoard exists and was buried given the chaos that was erupting in England at the time with the Roman abandoning the island and new conquerors starting to make their presence known. Much as we see in our own times, chaotic and uncertain time periods cause people to flock even more to things of intrinsic value, such as gold and silver, to help them get through the hard times as their acceptance as a store of wealth is nearly Universal, despite the absurd claims of central bank, globalist, paid-off “economists” who do the bidding of Oligarchs by lying to the People in exchange for paltry sums.

As the U.S. dollar continues to experience rapid inflation and destruction of purchasing power combined with a dysfunctional, unethical, and incompetent political and business establishment (“elites''), more and more people will switch to historic forms of money that are more naturally protected from inflation and damage from these absolute idiots in charge. In short, modern versions of Hoxne Hoards will be aggregated and secured across the USA and the world as people seek historically proven ways to maintain their wealth.

Bullion TP recommends not hiding your own version of your hoard in a field to be discovered over 15 centuries later. Maybe just leave it to the kids or something.

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