Great article just went up over at Numismaster.com

Here is an excerpt:

On Aug. 1, 2008, the Zimbabwean government dropped eight zeroes from their currency, so this is equivalent to the current Zimbabwean $10 note. At the current foreign exchange rates, it takes somewhere from 13,000 to 16,000 Zimbabwean dollars to be worth one U.S. dollar.

In other words, the government of Zimbabwe has taken a valuable commodity like paper, slapped some ink on it, and made it worthless. Actually – not quite worthless. Instead, it is more valuable being used as an artist’s canvas than as a medium of exchange.

Gold, on the other hand, has never become worthless through government inflation. Gold coins and bars have been made into jewelry and other forms of art because the gold represented a long-term store of value. Gold has never been worth zero, and it never will be.

You can see the whole article here:

Numismaster.com

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