Consider this - if your position is not 100%+ of your net worth, then you are actually *long* fiat currencies. A bit like 10 years ago where if you were a dollar bear but still had some dollars, you still lost half of what they were worth over the next 7-8 years. Being 70-80% long a collapsing asset is not much better than being 100% long in it. If fiat currencies fall 90% in value, and you are 100% long gold, then you will not actually make much of a profit in real terms. Most of the appreciation will just be keeping pace with high inflation. Furthermore, in many countries you will be taxed on your nominal gains, so you might actually lose money after tax and after inflation, despite being 100% correct. To ensure profit in the event of a major gold market rally under high inflation in future years, it is necessary to be >100% long gold or somewhat short fiat currency (e.g. by owning real estate with a fixed-rate mortgage, or having other fixed-rate debt). Think about people in Weimar Germany. Did it matter if they were up 1000% per annum in Deutschemarks? Not much, because the necessities of life were up much more. What mattered is their performance versus *sound money*. Therefore, if you are simply long sound money, you won't necessarily make any real return in sound money, you will actually lose because you get taxed on unsound fiat currency gains. One must rely either on gold (or other assets) going up *more* than inflation, or taking on some debt in order to ensure generating real returns in high inflation periods.