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<p>[QUOTE=&quot;spock1k, post: 426021, member: 7043&quot;]if you really want the answer to this the whole concept of buy and sell is completely flawed no matter what your medium of exchange is paper, silver, gold.&nbsp; It is very difficult to explain because it is very abstract but all the prices are made up.&nbsp; People will argue that its not made up but caused by demand and supply but even that is made up and there may or may not be artificiality into it.&nbsp; why do we use this system then because we dont have something better.</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>the same goes for things like stocks and bonds.&nbsp; People are happy with the promise to pay they dont really care about the physical aspect of it.&nbsp; We have been living in a fiat system since 1971 i dont hear people complaining where the dollars come from and can we get something for it.&nbsp; The nature of investments at its very core is to be better of tomorrow then you were today and for that some other variable has to change.&nbsp; Whether the fiat system succeeds or fails the underlying principle of investment wont change.&nbsp; you have to realize that people could do the same thing with soil or sand in the beach or salt ( and it has been done in the past) with the same results.&nbsp; Gold silver and any other metal has no value other than what we as a society put on it. </p><p><br /></p><p><br /></p><p><br /></p><p>I will tell you why future expectations and market manipulation which is believed to be temporary in nature.&nbsp; They feel that the market will correct itself in the future and thats why they are not willing to.&nbsp; if the situation persists and prices stabilize for another year or so you will see bullion being traded for just over spot at whatever the spot is at that point in time </p><p><br /></p><p><br /></p><p><br /></p><p>In a fair market he doesnt take a hit because he just replaces his silver for under spot and actually come out ahead sure the book loss will remain but he actually loses more by not selling.&nbsp; However i dont expect most dealers to understand this or the concept of book profits when its so counter intuitive and for people with limited capitalization can cause great financial ruin</p><p><br /></p><p><br /></p><p><br /></p><p>The correct question here is how many people who buy the paper actually want physical.&nbsp; the answer will surprise you.&nbsp; they dont want physical they want the promise.&nbsp; as long as people believe in the promise it will work.&nbsp; the problem starts to occur when we over promise.</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>In theory you have doubled your money but have you really doubled it?&nbsp; odds are not as the purchasing power of money that you own now has dwindled.&nbsp; most of that will not be caught because if it was that obvious the fiat system would have failed already.&nbsp; </p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>It had been 15:1 for tens of years but in a fiat system ratios mean nothing.&nbsp;&nbsp; IMHO its dangerous to go by ratios at least i would not advise anybody for it.&nbsp; they can change or be changed.</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>My advise to everyone here on CT is just this coin collecting and bullion investment are 2 different things.&nbsp; If you mix the 2 no one can predict what the final concoction will look or taste like but bitter or sweet you will be the one tasting it.</p><p><br /></p><p>Beam me up scotty <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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