Posted on 12/03/2011 6:13:56 PM PST by Comparative Advantage
That's funny.
“Silver was nearly $50 an ounce in 1980. Now it’s about $32 an ounce. Did it protect against inflation over the last 31 years?”
That was a one day peak at the top of a 6 month run from $6/oz based on the Hunt’s folly.
This run up has lasted 11 years and endured another near $50 six month spike early this year.
Should say a 6 month run up to a $50 spike earlier this year.
A 36% drop from the recent peak? Doesn't sound like a good hedge lately.
I picked 1913 because the start date of the Fed is generally considered to be the beginning of the end for the dollar. If you read a little history, you will find that there has never been a fiat currency that did not eventually go to zero value. Local examples include the continental of revolutionary war times and the confederate money issued during the civil war. An ounce of silver has never in recorded history been worth zero. I would take my chances that it never will. Not so a dollar bill.
I am still waiting for someone to name something other than precious metals that can be bought today, stored, and be pretty certain to have some value at any future date and in any location.
I would of course not suggest spending a large portion of of one’s resources on metals. Tools, supplies, practical education and things of that sort are the first priority. However, I am concerned for those who think that security lies in pieces of paper or strings of ones and zeros in a bank computer. That will work fine until it doesn’t.
Only by conspiracy types.
If you read a little history, you will find that there has never been a fiat currency that did not eventually go to zero value.
So? There has never been a metal backed currency that lasted.
I am still waiting for someone to name something other than precious metals that can be bought today, stored, and be pretty certain to have some value at any future date and in any location.
I suggest Philip Morris stock.
IIRC, the Hunt brothers went to jail for that.
You are absolutely right, a dollar will still buy just as much as it did in 1913, gold and silver will be eaten by moths, and no company will ever go broke. I will now dig up my silver, sell it if it still has any value, and buy Snickers bars.
Over and out.
“Silver was $50 an ounce in 1980.”
Wasn’t that a direct result of the Hunt brothers attempting to “corner the market”? (They went bankrupt afterwards.)
Let's see . . . 30 bucks, less 10% commision, becomes 30 bucks if inflation is 10%.
Way to get ahead of the game there, champ.
If you bury your money under your floorboards, you deserve to lose buying power.
A couple of guys were able to manipulate a commodity? Doesn't sound like a stable thing to base a currency on, does it?
Yeah, it's as known as leveraging. It also helps if you're a billionaire. To wit, another billionaire (George Soros) was able to break the Bank of England several years ago. People with ungodly amounts of money have a tremendous amount of influence on any market (stocks, bonds, commodities, etc.).
“It doesn't sound like a stable thing to base a currency on, does it?”
What? Seriously?! So you think “OIL” is a stable thing to base a currency on?
Yeah, it's as known as leveraging. It also helps if you're a billionaire. To wit, another billionaire (George Soros) was able to break the Bank of England several years ago. People with ungodly amounts of money have a tremendous amount of influence on any market (stocks, bonds, commodities, etc.).
“It doesn't sound like a stable thing to base a currency on, does it?”
What? Seriously?! So you think “OIL” is a stable thing to base a currency on?
I guess it's a good thing our currency isn't based on oil.
Altria or PM Intl?
I like them both. And they’ve never been worth zero.
I disagree.
Oil is going to run-out eventually. When that happens, what are we going to base our currency on? Grapefruit juice?
You want us to base our currency on something that will eventually run out?
Bad idea.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.