When we think of inflation we usually think of how much food, electricity or gasoline costs.
But there is another aspect as well: how much it costs us to buy financial assets.
Inflation is a pretty bad thing, you’re holding huge amount of money, but that money is totally useless, because things are costly in the market and before you know what’s happening you’re already done spending all the money on just a few things.
The covid-19 situation has really turned a lot of economies around the world upside down and causing them all to struggle. It has been the same way in most countries, and it’s worst in a case whereby the government is filled with leaders that doesn’t care to carry out their responsibilities to the citizens. Inflation keeps going up and the cost of things are high, and people are now looking for ways to save their value.
This is why the rich have so little cash around, they understand the system is rigged so it would be silly for them to keep a huge amount of cash around when inflation is going to destroy the purchasing power of that money, so they use all the money they have available to invest in whatever they want while just maintaining the minimum amount of cash necessary to keep their lives going, so in the end instead of being negatively affected by inflation they end up benefiting from it.