Currencies Come – and Go: A History

December 2, 2014

History clearly shows that when it comes to currencies black swans do happen as the average lifespan of a currency is just 27 years. As such, investors should study currency history and, as part of a smart portfolio, they should protect their hard earned wealth and savings in a defensive fashion. The infographic below documents the history of currency in 10 different countries of significance.

The above introductory comments are edited excerpts from an infographic* courtesy of travelex.com.au via zerohedge.com as posted by Jeff Desjardins of VisualCapitalist.com entitled The History of Currency in 10 Different Countries.

The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and theFREE Market Intelligence Report newsletter (register here; sample here). This paragraph must be included in any article re-posting to avoid copyright infringement.

Desjardins goes on to say in further edited excerpts:

Throughout history there have been thousands of currencies that were once used for trade. One study of775 fiat currencies found the average lifespan of a currency to be just 27 years. Here’s the breakdown:

20% currencies failed through hyperinflation
21% were destroyed through war
12% were destroyed through independence
24% were “monetarily reformed”
23% are still in circulation

It seems like a foregone conclusion that some of the currencies listed in the above infographic may not exist in 10 years, or perhaps they [will] get “monetarily reformed”. In any case, it’s worth noting that in today’s interconnected world, it may be easier to stave off the death of one currency through global intervention. However, systematically there is far greater risk. If one currency fails, the possibility also exists for many others to share the same fate through the domino effect.

Investors should study currency history and, as part of a smart portfolio, they should protect their hard earned wealth and savings in a defensive fashion. Black swans do happen, and even the crisis in the tiny country of Cyprus had people reeling. The potential for something much bigger is inevitably a possibility – it is just a matter of when and how.

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

*http://www.visualcapitalist.com/history-currency-10-different-countries/ (Copyright © 2014 Visual Capitalist | All rights reserved.) Sourced from: http://www.zerohedge.com/news/2014-09-11/brief-history-currency-infographic (Copyright ©2009-2014 ZeroHedge.com/ABC Media, LTD; All Rights Reserved.)

_____________________________________________________________________________________

Advertisement:
Join us at CommonStockWarrants.com for the only listing and details on all stock warrants trading in the United States and Canada. All industries and sectors are represented and many opportunites for investors. Don’t overlook this unique opportunity. Visit our website now.