Not all investors in precious metals know that in many currencies of the world the value of gold has come close to its record highs. It is not only about the Russian ruble, the Turkish lira or the Venezuelan bolivar.
For example, in Australia, the price of gold reached some time ago a record high of 1870 Australian dollars, although precious metals now trade at 1821.95 AUD. But if you look at the quotes of the yellow precious metal in other currencies, you can see an interesting trend.
The increase in the value of gold is observed primarily in economically underdeveloped countries, which are largely dependent on foreign capital. Gold is growing in national currency, as inflation prevails in the country, which devalues the paper currency.
A vivid example of the depreciation of the national currency is the situation in Venezuela, where record hyperinflation prevails, as a result of which paper money lost its purchasing power. Another example of galloping inflation is Turkey, where the rise in prices in March was + 20%. According to the forecast, by the end of 2019, the economic decline may reach -3%.
Both of the above examples show how quickly the situation in the country's economy can change, although quite recently economic growth was observed in Turkey, and nothing foreshadowed trouble. Every investor should understand the importance of hyperinflation and its impact on the economy.