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<p>[QUOTE="World Colonial, post: 2444710, member: 78153"]I believe gold will - eventually - lose relative value and maybe a lot because it is historically overpriced today. If a substitute is found during a long term downtrend, I don't necessarily believe it will be possible to attribute any of the price decline to it because "fundamentals" are as often as not simply rationalizations for prior price action.</p><p><br /></p><p>With silver, I am less certain of it. It doesn't have its prior monetary role and to date, I suspect that if its industrial demand has declined recently (as I believe it has at least somewhat), its probably been made up substantially by retail buying. Tens of millions of ASE have been bought by stackers.</p><p><br /></p><p>In the upcoming financial crisis that I see "eventually", I expect a lot of selling of the physical (as opposed to "paper") metal, both of them but especially silver. Some of it may be due to trend followers getting out but even if not, predominantly by "weak hands" who MUST sell to raise cash.</p><p><br /></p><p>After that though, even with limited industry uses, I don't see it being abandoned because fiat money losing its value is an even safer bet.[/QUOTE]</p><p><br /></p>
[QUOTE="World Colonial, post: 2444710, member: 78153"]I believe gold will - eventually - lose relative value and maybe a lot because it is historically overpriced today. If a substitute is found during a long term downtrend, I don't necessarily believe it will be possible to attribute any of the price decline to it because "fundamentals" are as often as not simply rationalizations for prior price action. With silver, I am less certain of it. It doesn't have its prior monetary role and to date, I suspect that if its industrial demand has declined recently (as I believe it has at least somewhat), its probably been made up substantially by retail buying. Tens of millions of ASE have been bought by stackers. In the upcoming financial crisis that I see "eventually", I expect a lot of selling of the physical (as opposed to "paper") metal, both of them but especially silver. Some of it may be due to trend followers getting out but even if not, predominantly by "weak hands" who MUST sell to raise cash. After that though, even with limited industry uses, I don't see it being abandoned because fiat money losing its value is an even safer bet.[/QUOTE]
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