There is no doubt that the act of lending by banks increases the money supply, and the repayment of loans and interest reduces the money supply....
... and just as a followup on the interest paid to the Fed. The Fed pays a 6% dividend on the stock held by the member banks in their region, and...
China used fiat currency for most of the period between 1000 and 1450, but perhaps there are experts here on the history of China with more...
This is a common story used to discredit the Fed, but it has a couple of flaws. First, the Treasury doesn't necessarily borrow from the Fed. The...
I agree. http://en.wikipedia.org/wiki/Taylor_rule
That's probably a good working assumption. The prices could overshoot to the downside in a bear market panic in metals, but those ranges are...
The American coins are American Siver Eagles [ASE] and are the US equivalent of the Canadian coin. They have a $1 face value and are .999 silver....
I understand your point. You asked if I think marketing is the factor behind gold's move, and I told you it is probably A factor but not THE...
I don't think of technology as a "thing." Besides, I don't see many $59 TV sets and $2 radios around anymore. Most of what is "cheaper" today...
Second derivative investment ideas have too many variables.
I don't think there is any value to that sort of thinking. If you look at a price chart of gold and silver over a one year period, silver has...
It's sort of an existential question since intrinsic value must always be measured against something. Bonds are measured against interest rates....
We look at the same numbers, but draw different conclusions. While gold was rising from $252 to $1800, silver was rising from a $5-6 level to...
It's still a bull market. The path of least resistance is UP!
Except that in the 1970s, gold and silver made their biggest move up during a period of rising interest rates. It just isn't that easy to time...
I think it is partly marketing, partly central bank demand for gold, and partly the bad economy. Over any one year period, I expect both to move...
You should never invest in something you aren't comfortable with. The way I look at it, silver follows gold, but isn't a clone.
I agree. "Backing" is just another deception.
QE1 was announced on March 18, 2009. On that day, silver closed at $12.685. QE2 was announced on November 3, 2010. On that day, silver closed...
I don't expect $40 to have a big effect on either. In the applications that use silver, it seems to usually be a small component relative to the...
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