Message:

<p>[QUOTE=&quot;mikem2000, post: 4301812, member: 30574&quot;]Well I totally agree that we have been on the Fiat system way longer than folks would like to believe. </p><p><br /></p><p>Now as far FRN&#039;s&nbsp; being a store of value, I really don&#039;t expect a lot of folks to agree with me, and I really are not trying to convince you but here are some things to think about. Different things have value for different reasons.</p><p><br /></p><p>&nbsp;A TV has value for its utility. A warehouse full of TVs is a store of value. </p><p><br /></p><p>An art collection would be a store of value, but it has no utility, it is valued for its beauty/possible rarity. </p><p><br /></p><p>Numismatic coins have value for their collectability.</p><p><br /></p><p>The commonality for those things is other people want them and you can store them, simple enough. They are all stores of value.</p><p><br /></p><p>Now with FRN&#039;s people want those too. They are valued in every corner of the Globe, everybody wants greenbacks. People just can&#039;t get enough. They are valued for a 4th reason though. They are valued for their exchangeabilty. So my point is, the reason people want them is immaterial. If people want them, for whatever reason, they have value, period.</p><p><br /></p><p>Now, there is a talking point as to how &quot;good&quot; that store of value is. An oz. of Gold is MOST LIKELY (but no guarantees) is &quot;better&quot; then 16 Benjamins in your bottom drawer. No argument there. Now you touched on this when you talked about currency be debased, but the PM&#039;s holding their value better. Most likely true, but nowhere in the definition of store of value is there a rating of the relative effectiveness of that store. Also PM&#039;s are not immune to being bad stores of value. Just look at Platinum and Rhodium, they would both be considered Stores of value, but in those cases the FRN&#039;s kick their butts !</p><p><br /></p><p>I think we can agree that commodities are stores of value. Some of them would be considered horrible for the long term though. Let&#039;s look at Barley. It certainly has value, but if you are storing ityou better be turning it in beer, or selling it,&nbsp; because it won&#039;t maintaining its value for very long. So what I am saying, is the quality of that store of value does not define if it is truly a store of value or not.</p><p><br /></p><p>Anyway, just some thoughts YMMV.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in