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Investing in the stock market - Discussion


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  • 2 weeks later...

But whats the advantage to holding it physically? Short of a Mad Max scenario.

Because what makes silver valuable is its physical properties. For every ounce of physical metal available above ground, there is over 100 paper ounce contracts. For gold the ratio is around 60:1. What happens when people decide they want to take delivery and there is only so much to go around? You won't get the metal you thought you owned. Period.

Secondly, silver is money, albeit a different form than the modern currency we have today. So why not have some?

Mad max? - No.

Long term financial transitions? - Yes.

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Demand went up, for no reason other then people with money decided to not invest it anywhere else.

Fine. Demand for gold goes up and supply stays the same or doesn't increase at the rate demand does, thereby increasing the price.

This is besides the point.

$500 gold to $1000 gold - what changes, the dollars or the gold?

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Fine. Demand for gold goes up and supply stays the same or doesn't increase at the rate demand does, thereby increasing the price.

This is besides the point.

$500 gold to $1000 gold - what changes, the dollars or the gold?

The dollar relatively speaking. that's why gold is often used as a hedge against inflation.

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The dollar relatively speaking. that's why gold is often used as a hedge against inflation.

Exactly. It is more about the value of the dollars decreasing, than the value of the gold increasing. The gold doesn't change, it is what it is. It is the dollars that are volatile. (have a look at the 10 year chart of oil for fun)

This is why I asked you to define value.

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Exactly. It is more about the value of the dollars decreasing, than the value of the gold increasing. The gold doesn't change, it is what it is. It is the dollars that are volatile. (have a look at the 10 year chart of oil for fun)

This is why I asked you to define value.

But the value of the dollar can increase or decrease independent of any precious metals values.

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Exactly. It is more about the value of the dollars decreasing, than the value of the gold increasing. The gold doesn't change, it is what it is. It is the dollars that are volatile. (have a look at the 10 year chart of oil for fun)

This is why I asked you to define value.

A dollar loses value everyday. A dollar doesn't buy what it used too 10 years ago

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