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<p>[QUOTE="Cloudsweeper99, post: 713073, member: 3011"]If you wanted to increase the purchasing power of paper money, I suppose you could draw another zero on it, but the problem remains to choose something as a benchmark against which to value it. Would you use gold? Silver? Some sort of index? Would the increase in the number of zeros on your paper just translate into more inflation and undo what you attempted? No, it can't be done. It's been tried in various times and places like Weimar Germany and failed.</p><p><br /></p><p>You can dictate the face value of paper money, but not the purchasing power. During an inflationary period, the purchasing power will drop. With a coin, you can vary the face value with the underlying purchasing power of the metal during an inflationary period and the owner is better off RELATIVE TO the fiat currency against which it is measured. </p><p><br /></p><p>Also, silver has value because of the properties of the metal that give it so many uses. I would think this is obvious.</p><p><br /></p><p>I guess the difference between us is that you would be equally happy to hold a paper $20 bill, or a silver coin with $18 of silver content and a $20 face value. I would take the coin. If prices are stable, we are both even. If prices decline, we are both even. If prices increase a lot, I have a better chance of coming out ahead.</p><p><br /></p><p>But this has been a valuable discussion, and gives other readers both sides of the discussion for further investigation and to decide for themselves. So it has been worthwhile.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 713073, member: 3011"]If you wanted to increase the purchasing power of paper money, I suppose you could draw another zero on it, but the problem remains to choose something as a benchmark against which to value it. Would you use gold? Silver? Some sort of index? Would the increase in the number of zeros on your paper just translate into more inflation and undo what you attempted? No, it can't be done. It's been tried in various times and places like Weimar Germany and failed. You can dictate the face value of paper money, but not the purchasing power. During an inflationary period, the purchasing power will drop. With a coin, you can vary the face value with the underlying purchasing power of the metal during an inflationary period and the owner is better off RELATIVE TO the fiat currency against which it is measured. Also, silver has value because of the properties of the metal that give it so many uses. I would think this is obvious. I guess the difference between us is that you would be equally happy to hold a paper $20 bill, or a silver coin with $18 of silver content and a $20 face value. I would take the coin. If prices are stable, we are both even. If prices decline, we are both even. If prices increase a lot, I have a better chance of coming out ahead. But this has been a valuable discussion, and gives other readers both sides of the discussion for further investigation and to decide for themselves. So it has been worthwhile.[/QUOTE]
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