Message:

<p>[QUOTE=&quot;fatima, post: 1164958, member: 22143&quot;]These are synonymous terms.&nbsp; Inflation is created by printing too many dollars.&nbsp; It&#039;s been built into every fiat money system ever invented and hence also the fatal flaw of every fiat monetary system ever created.&nbsp;&nbsp; Inflation is not the definition of a scarce commodity due to demand out pacing supply.&nbsp; </p><p><br /></p><p>On your second point silver was not a simple commodity in the early 60s and prior.&nbsp; Silver was absolutely defined as a monetary asset by the federal government in the form of $ silver certificates and silver coinage.&nbsp; Gold was still being used to settle balance of payments with foreign governments.&nbsp; They were not commodities at all by definition.&nbsp; However because these dollars traded on equivalent terms with fiat dollars (federal reserve notes) and the inherent inflation that comes with it, the USA was forced to end the silver and gold redemptions over the late 60s and we went completely fiat in 1971.&nbsp; </p><p><br /></p><p>Now note there is a fundamental difference between the two metals in this regard that investors often don&#039;t &quot;get&quot;.&nbsp; The USA sold off all its silver reserves and it has none now.&nbsp; On the other hand it kept all its gold (and in fact technically bankrupted itself by refusing to pay off Europe in gold) and that gold is now listed as an asset of the USA and the Federal Reserve.&nbsp;&nbsp; When governments hold a significant amount of the entire world&#039;s supply of an gold in storage, it can never be a commodity.&nbsp; Silver is a different case.&nbsp; While it has no relationship to the value of money these days, the vast amount of trading of this metal is for naked shorts where there can never be any hope of delivery.&nbsp; So in this case I would say that it fails to meet the commodity test as well.&nbsp;&nbsp; </p><p><br /></p><p>Of the two, Silver is a crap shoot, Gold is not.&nbsp;&nbsp; </p><p><br /></p><p>This bears reading.&nbsp;&nbsp; </p><p><a href="http://www.shtfplan.com/precious-metals/precious-metals-storage-scam-sorry-delivery-is-not-possible_04192011" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.shtfplan.com/precious-metals/precious-metals-storage-scam-sorry-delivery-is-not-possible_04192011" rel="nofollow">http://www.shtfplan.com/precious-metals/precious-metals-storage-scam-sorry-delivery-is-not-possible_04192011</a>[/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