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<p>[QUOTE="oobaa47, post: 2865428, member: 90157"]Newbie observation...maybe somebody can help me out....</p><p><br /></p><p>If precious metals are supposed to be a hedge against inflation...let's say in the past 20 years, the us dollar has depreciated on average 2-3% (ie, inflation was annually 2-3%). And if precious metals, let's say silver, is calculated in us dollar terms, wouldn't it also have to increase in value 2-3% just to maintain it's "real" value in terms of us dollars? So silver has decreased in value approx 51% in the past 5 years, but since is relative to us dollars, it's "real" decrease is substantially more than that.</p><p><br /></p><p>I hope I'm writing what I'm trying to say. Let's just hypothetically say if silver ten years ago was 17 per oz and today it's also 17 per oz, nominally it hasn't appreciated or depreciated at all. But in real dollar terms, it actually decreased substantially because of the annual inflationary forces on the dollar every year. Silver would have to appreciated, at a minimum, 2-3% just to break even due to inflation. Am I making any sense?[/QUOTE]</p><p><br /></p>
[QUOTE="oobaa47, post: 2865428, member: 90157"]Newbie observation...maybe somebody can help me out.... If precious metals are supposed to be a hedge against inflation...let's say in the past 20 years, the us dollar has depreciated on average 2-3% (ie, inflation was annually 2-3%). And if precious metals, let's say silver, is calculated in us dollar terms, wouldn't it also have to increase in value 2-3% just to maintain it's "real" value in terms of us dollars? So silver has decreased in value approx 51% in the past 5 years, but since is relative to us dollars, it's "real" decrease is substantially more than that. I hope I'm writing what I'm trying to say. Let's just hypothetically say if silver ten years ago was 17 per oz and today it's also 17 per oz, nominally it hasn't appreciated or depreciated at all. But in real dollar terms, it actually decreased substantially because of the annual inflationary forces on the dollar every year. Silver would have to appreciated, at a minimum, 2-3% just to break even due to inflation. Am I making any sense?[/QUOTE]
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