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<p>[QUOTE=&quot;Blaubart, post: 1704069, member: 37498&quot;]OK, I&#039;ll try.</p><p><br /></p><p>Here are your words:</p><p><br /></p><p><br /></p><p>If your assertion were true, then I could buy $1000 worth of silver (41 ounces at current prices) and at the same time place $1000 in a savings account earning 2% interest. Let&#039;s assume that silver doesn&#039;t do so well and it falls to $10 an ounce a year from now. So we withdraw our $1020 from the bank and we sell our silver for $410. It doesn&#039;t matter what inflation did during that year, $1020 is different than $410.</p><p><br /></p><p>The same thing would be true if silver had a good year. Let&#039;s say the value of silver climbed back up to $30. When we sell our 41 ounces, we&#039;d have about $1230. Once again, it doesn&#039;t matter what inflation does, $1230 is different than $1020.</p><p><br /></p><p>The ONLY time it would work out as you assume is if the change in the value of silver is exactly the same as the effect interest and inflation had on the dollars during that period of time. For any pair of data points you can show me where this happened, I can show you an infinite number of points where they did not.</p><p><br /></p><p>Note: I assumed we could buy and sell at spot and that was just for the sake of simplicity. Of course there is usually a spread and sometimes shipping fees involved. It would make the difference larger when silver loses value and smaller when it gains value. Otherwise, the concept is still the same.[/QUOTE]</p><p><br /></p>

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