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<p>[QUOTE="Get Some, post: 1240323, member: 32099"]To me, it's not so much that the value of gold and silver become higher, but that the buying power of the dollar has been decreasing. If I had $10,000 I could expect a certain amount of goods for that cash, but as the dollar becomes less powerful due to it being printed at ridiculous rates, it cost more dollars to purchase the same amount of goods. If they were to destroy currency that is in circulation the dollar's buying power would rise again and the price of goods including gold and silver would likely drop. I would lose "money" but expect to be able to get the same amount of goods as my initial $10,000 would have purchased since everything else drops in price too. It seems that cash reserves is just as big a gamble as precious metals are except cash is much easier to manipulate.[/QUOTE]</p><p><br /></p>
[QUOTE="Get Some, post: 1240323, member: 32099"]To me, it's not so much that the value of gold and silver become higher, but that the buying power of the dollar has been decreasing. If I had $10,000 I could expect a certain amount of goods for that cash, but as the dollar becomes less powerful due to it being printed at ridiculous rates, it cost more dollars to purchase the same amount of goods. If they were to destroy currency that is in circulation the dollar's buying power would rise again and the price of goods including gold and silver would likely drop. I would lose "money" but expect to be able to get the same amount of goods as my initial $10,000 would have purchased since everything else drops in price too. It seems that cash reserves is just as big a gamble as precious metals are except cash is much easier to manipulate.[/QUOTE]
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