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<p>[QUOTE=&quot;Michael K, post: 3270886, member: 78298&quot;]I have been wondering how silver &quot;is a store of wealth&quot;&nbsp; &quot;preserves wealth&quot; and is </p><p>a &quot;hedge against inflation&quot;.</p><p>In round figures let&#039;s assume the person live in the US and has been buying silver at an average of $20 an ounce over a period of 20 years until he has accum. 5000 ounces. Another person just puts away a $20 bill during the same time and has accum. $100,000.&nbsp; The price of silver goes up and down and not even considering the premiums paid or the buy and sell commissions, the silver guy now sells his silver at $20 an ounce, and his $100,000 has 20%-30% less buying power than it did 20 years ago. Where is the hedge against inflation? Where is the store/ preservation of wealth?&nbsp; The cash guy has EXACTLY the same amount of money as the silver guy, and if the money was kept in the money market, while it hasn&#039;t paid much interest for half that time (the last ten years) it has paid some return. Let&#039;s say the money was kept in a decent mutual fund account. Even with some down years that money has most likely almost doubled in value. (5% a conservative and realistic return.) And so it is the cash guy who has now hedged against inflation,</p><p>retained the purchasing power of his money and kept his store of wealth, while the silver guy has lost all of these things.[/QUOTE]</p><p><br /></p>

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