Euro Man;

Okay... You just hit a nerve ! <grin> I have been lurking following all the awesome information posted by this great community of worldwide Tyhee posters on this site for MONTHS and MONTHS.....

But you have just finally hit the essence of what I just don't understand about this whole world situation and Gold in general and Tyhee in particular ! Maybe you or other posters would be willing to try to help me and I am sure others understand what happens when the situation you describe occurs in EACH of our respective countries.

You are right...... Literally almost overnight Iceland has hit the wall.... Inflation 20% and Devaluation of their currency at 50%.

If I was an Icelandian..... (Is that an Icelandic person ?) and lets say I held Physical Gold 100 Ounces and I also Own Tyhee 10,000 shares at $.15 cents a share US $ and then I also own some Oil Company that sells for $ 100 US$ a share.

Okay Tomorrow I wake up and my icelandic Dollar, Rupee, Mark, Euro or whatever is now worth 1/2 of what it was when I went to bed. If I had that Icelandic Dollar in cash, or savings accounts or Certificates of Deposit I will be able to buy 1/2 of what I could yesterday in my local grocery store which is selling a consumer product like Loaves of Bread which have now doubled in value or is their cash money only halved in value when compared against a foreign currency ?or buying a Foreign product like Commodities or Gold....?

I'm thinking that it only loses value when measured against a foreign currency and that everything in the country changes with the devaluation so internally there is no effect ??? The Bread is still 30 Rupees or Euros or Dollars a loaf the next day relatively speaking. (I am thinking it's inflation that requires more of the currency value internally to buy that loaf of bread.)

But EXTERNALLY in REAL VALUE for FOREIGN TRADING Commodities.....Like The Physical Gold, The Tyhee Mine Shares or an Oil Stock With 1 Million Barrels of oil in the ground..(Forgetting the general market price collapse for a moment) They are worth TWICE what they were yesterday in Icelandic Money because of the 50% devaluation ? ? ?

I am thinking that while my Tyhee is still selling for $.15 a Share US$ by that next morning that by holding it it would effectivly double in value in Icelandic money terms if I was an icelandic holder or anyone else who was having their currency devalued by 50% ? ? So unlike cash in the face of a threatened devaluation I maintain my real value hat next morning ?

Euro man, can you or someone else please tell me is that what happens in practical terms when a currency is devalued ?

<Grin> If I can get this... Then maybe next week we could try testing my lack of understanding of what happens with inflation. LOL.. :)

and I'm sorry... I came to the Tyhee blog because I am just fascinated by its potential as a working Gold mine... All of this economic theory posted by everyone has been truly fascinating and intriguing though. I keep reading and reading... I just need this to know if this is how it all really practically comes together with devaluation ?

I hope that as a newbie it's okay that I ask like this ?

And Euro Man Thanks for posting that.....You finally made me go active !

GoldBarrenCharlie