Emperor Findus Cladius
Bronze Member
- Sep 2, 2004
- 1,831
- 46
- Detector(s) used
- Whites Vision/V3 Spectra, AT Pro
- Primary Interest:
- All Treasure Hunting
As of 7:09 Central time, it is at 13.05
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fiatboy said:No surprises. This might be the annual summer bop. And just to remind people, precious metals might be a good investment---who knows?---but they are the very best store of value. Over the long run, every fiat currency---i.e. a currency not backed by anything tangible, only the promise of the whoever is making it; for example, the U.S. dollar---inevitably loses its value, whereas precious metals always retain their value. Also remember that the price per oz. of silver or gold or wheat or widgets or whatever not only reflects the demand of the item, but also reflects the strength of the currency in which the item is priced. People always mention that gold has risen from $250 per oz. in 2001 to $670ish today, and that it's outperformed the stock market the last five years, and silver has done even better. But don't forget that the U.S. dollar has also lost it's value against just about every other currency in the world in that same time period. In other words, prices are a two-way street, yet people are accustomed to thinking only in terms of dollars because the dollar has been the de facto "gold standard" since the end of WWII. When I deal with bullion dealers in other countries, I'm always amazed at how the price of gold and silver in various currencies don't always reflect current exchange rates, even though they ought to. In other words, currencies, including the U.S. dollar, are just as volatile as the prices of precious metals. We may not feel the volatility as greatly as people in other countries, because we rarely deal directly with other currencies. Again, it's a two-way street. Nevertheless, it's always a bit of a sting when silver goes down. But I get a kick out of some silver investors. There's this certain type that is eternally optimistic. They buy silver because they think it will go up in value. When it does, they're happy. When it goes down, they're also happy, because now they can buy more silver at cheaper prices. What other investor is happy when their investment goes down in value? I admire that confidence. And admittedly, I'm a believer in silver, too. I just think it will take a while. And coin roll hunters have found a way to beat the system by getting silver at less than the spot price, which to me is more profound than you guys all realize. And for some people, the hunt is the best part! Personally, I do it for the hunt. I can't wait to hit the banks today! HH!