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To: hiredhand
Silver is no more intrinsically valuable than paper money. That people across the world value it as a unit of exchange does not make it different--just more accepted as a unit of exchange. Its only intrinsic value is for what it can be used for--in electronics, or as jewelry. In that, it is no different than copper, uranium, oil or platinum. But when you try to calculate its value as a unit of exchange, it is the same as paper--perhaps plus its value as a useful metal.

Corn has intrinsic value, because you can eat it. Silver has intrinsic value for jewelry, but in times of trouble, you sure can't eat it.

40 posted on 09/11/2008 4:36:23 PM PDT by Defiant (I prefer a Lewinsky in the White House to an Alinsky. The first blows, but the latter really sucks.)
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To: Defiant
I agree with you. I probably didn't get my point across well enough the first time. Silver is valued as a metal, as well as coinage. Usually, there's a bit of a spread between the two values. Paper is also valuable as just "paper". But given a choice of trading plain silver as opposed to plain paper, I'm "reasonably" sure that people are going to choose silver.


45 posted on 09/11/2008 5:29:55 PM PDT by hiredhand
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