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<p>[QUOTE=&quot;InfleXion, post: 1386838, member: 29012&quot;]1. You would think so, but since paper contracts determine the price of the physical market, and dwarf the supply and demand of the physical metal there&#039;s no reason that the value has to increase until the breaking point. </p><p><br /></p><p>2. I don&#039;t see much correlation other than that as oil rises so does everything else due to transportation, machinery, etc. I&#039;m not so sure dollars spent on oil are taken out of circulation. Most US dollars are held outside the US as it is. The Fed has to destroy the dollars in the electronic money supply, or whether it&#039;s the Fed or the Treasury that deals with paper dollars they have to pull those off the market and either hide them away or destroy them. </p><p><br /></p><p>3. It certainly used to be a monetary metal, but since 1964 it really hasn&#039;t been. I still consider it to be since it was for thousands of years and this little blip on the radar the last generation or so is an anomaly IMO. So I say both. </p><p><br /></p><p>4. All inflation has an effect on all commodities. The more money there is, the more each finite resource costs since money is a representation of goods and services. More money on the market means more demand and also therefore less supply. </p><p><br /></p><p>5.&nbsp; I haven&#039;t heard that statement before. Both gold and silver have been money for most of recorded human history. Now if you mean JP Morgan&#039;s statement of &quot;Gold is money, and nothing else.&quot; that can be interpreted one of two ways. Either gold is money, and nothing else is money, OR gold is money, and gold is not anything else but money. I defer to the latter.[/QUOTE]</p><p><br /></p>

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