As Gems' Value Rises Currency moves Toward a Value of Zero

In a high-inflation environment, a currency moves gradually, but consistently; toward a value of zero. Similarly, in a solvency crisis, a currency can go to zero overnight. Thus, instead of a deflationary environment being bearish for gemstones, it is arguably even more bullish; than a high-inflation scenario.

Deflationary economic situations do not detract from the value of gems or similar hard assets and other fundamental stores of value. Consider this ... it is not an accident that the U.S government passed the Gold Reserve Act in 1934, taking control of all gold in the country, during the depths of the Great Depression – when the United States was suffering the worst deflation it has ever experienced, before or since. At that time, regulators reached the conclusion that they had no choice but to actually make it a criminal offence, for U.S citizens to own real money because of deflation; not inflation.

There are many commodities that will soar in value, as the wave of inflation caused by insanely reckless money-printing, leads to the worst global inflation; in at least three decades. Simultaneously, the U.S and a few other hopelessly insolvent economies are facing deflationary spirals, combined with high inflation for basic consumer goods, and the only asset class with fundamentals that can protect against inflation and deflation; are precious stones.