One Hundred Trillion Dollars.
Shortly after the hyperinflation in Zimbabwe I bought this banknote for 3 Euros.
Because the printing presses in Zimbabwe were running non-stop in 2008/2009
there was a seemingly unlimited supply of these bills.
In 2011, I was traveling through Moldova and the Ukraine. I showed the banknote
to one of my friends. He wasn't familiar with foreign currencies and this extreme number blew his mind. So I gifted the banknote to him.
After all, I could always buy another one for 3 Euros.
Of course, I never did.
Fast forward to 2020 and today I was able to buy another one. Only now the price was very different. It cost me 60 Euros.
That's a whopping 20x return in 9 years.
Better than most asset classes over the same time frame.
At 60 Euros the Zimbabwe 100 trillion dollar note is probably still a good
Why do I think that?
There is another country with a 100 trillion banknote: Germany.
In February 1924 during the Weimar Republic hyperinflation days, Germany
issued its highest denomination banknote. One hundred trillion Mark.
Today, 96 years later this banknote fetches between 5,000 and 10,000 Euros
(depending on its condition).
It's really ironic.
When these banknotes were still in circulation they were literally worthless because there were so many of them (inflation).
Now they're no longer in circulation and a collectors item. Their availability
has gone down dramatically. And over time and they become more and more rare (deflation).
As a consequence their value keeps going up.
I wouldn't be surprised to see the Zimbabwe 100 trillion dollar note sell
for hundreds of dollars a few years from now.