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<p>[QUOTE="InfleXion, post: 1700251, member: 29012"]Investment timeframes over short time periods aren't very useful unless trying to paint a short sighted picture. If we look over the last 10 years both gold and silver have vastly outperformed stocks even at today's prices. Maybe they won't in the future, but it all depends on the timeframe. Obviously they are underperforming right now, just like they did in 2008 before silver rocketed up over 400% in less than 3 years. </p><p><br /></p><p>Yes, historical odds favor stocks outperforming PM's according to history, but we are in unprecedented times. We never had debt based currency impacting gold and silver prices in the US until the 20th century, so anything before that is moot as the situation was very different. </p><p><br /></p><p>The other thing that is different this time, yes I said it, is that we have the first ever global fiat currency system, and while it's not the first time that we have had highly leveraged financial markets (Great Depression and other examples exist surely), it is the first time that such leverage has been required to sustain the global monetary system's well being. </p><p><br /></p><p>If we do see another Great Depression type scenario the consequences will be far greater, and all non-tangible assets will be very risky to have at that point as priviliged holders and robots get to pull their money out long before your average investor. </p><p><br /></p><p>I do see silver as an investment because of the supply and demand fundamentals that are not being adhered to by price action. I also see gold as an investment because of the monetary dilution that has yet to inflate on the open market. Otherwise if precious metals were allowed to react accordingly based on their roles instead of having those roles usurped by electronic markets then I would agree they are just inflation hedges and not so much investments.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1700251, member: 29012"]Investment timeframes over short time periods aren't very useful unless trying to paint a short sighted picture. If we look over the last 10 years both gold and silver have vastly outperformed stocks even at today's prices. Maybe they won't in the future, but it all depends on the timeframe. Obviously they are underperforming right now, just like they did in 2008 before silver rocketed up over 400% in less than 3 years. Yes, historical odds favor stocks outperforming PM's according to history, but we are in unprecedented times. We never had debt based currency impacting gold and silver prices in the US until the 20th century, so anything before that is moot as the situation was very different. The other thing that is different this time, yes I said it, is that we have the first ever global fiat currency system, and while it's not the first time that we have had highly leveraged financial markets (Great Depression and other examples exist surely), it is the first time that such leverage has been required to sustain the global monetary system's well being. If we do see another Great Depression type scenario the consequences will be far greater, and all non-tangible assets will be very risky to have at that point as priviliged holders and robots get to pull their money out long before your average investor. I do see silver as an investment because of the supply and demand fundamentals that are not being adhered to by price action. I also see gold as an investment because of the monetary dilution that has yet to inflate on the open market. Otherwise if precious metals were allowed to react accordingly based on their roles instead of having those roles usurped by electronic markets then I would agree they are just inflation hedges and not so much investments.[/QUOTE]
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