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<p>[QUOTE="Cloudsweeper99, post: 1134311, member: 3011"]Deflation can be good or bad depending on circumstances [isn't that always the case?]. If it is due to increases in productivity that lower costs and increase the purchasing power of the dollar, that's good. If it is due to crashing markets that result in fast and large reductions in the money supply, that's bad. Contrary to popular belief, inflation and deflation have a lot in common. Both result in a reduction of purchasing power -- inflation because the dollar buys less, deflation because there are fewer dollars to buy with. </p><p><br /></p><p>Eventually, the time will come to sell silver. Right now, the market is training people to buy on the dips. It is very similar to tech stocks in the 90s. Buying the dips was profitable right up to the day when the dip turned into a crash and took many people with it because they bought all the way down. Silver is highly volitile and should not be considered a substitute for savings. It might go up spectacularly, or down. I suspect it will go up first, by a lot, and eventually make the round trip to settle around $20. But that's just my working assumption. Everyone should do their own analysis and act according to their means and risk tolerance.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 1134311, member: 3011"]Deflation can be good or bad depending on circumstances [isn't that always the case?]. If it is due to increases in productivity that lower costs and increase the purchasing power of the dollar, that's good. If it is due to crashing markets that result in fast and large reductions in the money supply, that's bad. Contrary to popular belief, inflation and deflation have a lot in common. Both result in a reduction of purchasing power -- inflation because the dollar buys less, deflation because there are fewer dollars to buy with. Eventually, the time will come to sell silver. Right now, the market is training people to buy on the dips. It is very similar to tech stocks in the 90s. Buying the dips was profitable right up to the day when the dip turned into a crash and took many people with it because they bought all the way down. Silver is highly volitile and should not be considered a substitute for savings. It might go up spectacularly, or down. I suspect it will go up first, by a lot, and eventually make the round trip to settle around $20. But that's just my working assumption. Everyone should do their own analysis and act according to their means and risk tolerance.[/QUOTE]
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