Anybody who wants to read up on the ‘paradox of inflation’ should turn to Dr Marc Faber’s classic Tomorrow’s Gold for guidance. Even six years after publication this remains the best investment book currently on sale. His foresight is amazing and the most part of a chapter is devoted to explaining how high levels of inflation impact on asset prices. That investors will switch from fiat currencies to precious metals is obvious enough. However, Dr Faber also highlights what he calls the ‘paradox of inflation’, namely that with general price levels surging asset classes like equities actually become very cheap. … Continue reading Marc Faber, Hyperinflation, Equity and Gold Prices