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<p>[QUOTE="Tokens, post: 3423533, member: 102263"]Here's an interesting example. One of the 'arguments' in favor of, say, 90% coinage is that it has an infrastructure advantage in inflationary situations, where it can be quickly repurposed as asset-backed 'money' while allowing streams of commerce and exchange to continue in a monetary context.</p><p><br /></p><p>Venezuela had circulating silver bullion coinage even after the US did away with it.</p><p><br /></p><p>Venezuela is experiencing severe hyper-inflation.</p><p><br /></p><p>There are no credible reports of Venezuelans resorting to 'old silver coins' as money, but rather other forms of more trusted fiat currency.</p><p><br /></p><p>The most contemporary example we have of the 'doomsday metals' narrative is ongoing, as we speak, yet that narrative is not substantiating in real world terms, in the exact context that doomsday metals types say is its day to shine.</p><p><br /></p><p>You can say that metals are a 'swap' against something but there are too many contemporary indicators to suggest that narrative doesn't play out.</p><p><br /></p><p>So what are you swapping against? And what's the opportunity cost of your hoarding metal discs, relative to other incredibly simple investment opportunities that would've yielded vastly superior returns?</p><p><br /></p><p>$10K invested in silver 10 years ago is worth about the same then as it is today (but that $10K has $8500 worth of buying power, now)</p><p><br /></p><p>$10K in an index fund 10 years ago is worth $31K now</p><p><br /></p><p>Metals as a pivot relative to other opportunities can make sense, but you almost never hear "metals bugs" talking about any of that stuff. it's just something about how "muh money is kept in silver, brass and lead!!"[/QUOTE]</p><p><br /></p>
[QUOTE="Tokens, post: 3423533, member: 102263"]Here's an interesting example. One of the 'arguments' in favor of, say, 90% coinage is that it has an infrastructure advantage in inflationary situations, where it can be quickly repurposed as asset-backed 'money' while allowing streams of commerce and exchange to continue in a monetary context. Venezuela had circulating silver bullion coinage even after the US did away with it. Venezuela is experiencing severe hyper-inflation. There are no credible reports of Venezuelans resorting to 'old silver coins' as money, but rather other forms of more trusted fiat currency. The most contemporary example we have of the 'doomsday metals' narrative is ongoing, as we speak, yet that narrative is not substantiating in real world terms, in the exact context that doomsday metals types say is its day to shine. You can say that metals are a 'swap' against something but there are too many contemporary indicators to suggest that narrative doesn't play out. So what are you swapping against? And what's the opportunity cost of your hoarding metal discs, relative to other incredibly simple investment opportunities that would've yielded vastly superior returns? $10K invested in silver 10 years ago is worth about the same then as it is today (but that $10K has $8500 worth of buying power, now) $10K in an index fund 10 years ago is worth $31K now Metals as a pivot relative to other opportunities can make sense, but you almost never hear "metals bugs" talking about any of that stuff. it's just something about how "muh money is kept in silver, brass and lead!!"[/QUOTE]
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