In August 2018, Venezuela re-denominated the bolivar, lopping five zeros off it. Today’s price of 25.00 new bolivars is equal to 2,500,000 old bolivars. Converted into dollars, that comes to less than $0.50.
Bloomberg’s Cafe con Leche indicates that a cup of coffee (with milk) in Caracas Venezuela costs 430,000 Bolivars. This is happening as Venezuela’s crude oil basket crashed to 13.74.
This is happening as Venezuela oil production is crashing.
According to Steve Hanke at Johns Hopkins, the Venezuelan annual inflation rate is at 2,025%, over 4X Zimbabwe’s annual inflation rate.
The spot metal has posted two straight weekly gains, and at least one technical signal is pointing to further increases. Bullion’s moving average convergence-divergence indicator, a gauge of price momentum, crossed above the so-called signal line last week for the first time since early August in a bullish sign for traders who follow price patterns.