View Single Post
Old 11-27-2012, 13:56   #1270
Senior Member
Glocksanity's Avatar
Join Date: Feb 2012
Location: Los Angeles, Man, Los Angeles
Posts: 2,886
Originally Posted by wjv View Post
Ferfal's experience in Argentina was that silver/gold appreciated SLIGHTLY better than the inflation rate.

His example (working from memory here) was that if X amount of silver could buy 1 loaf of bread before the collapse, then afterwards it was buying 1.25-1.5 loaves of bread.

No one got rich holding PMs, but they either maintained, or increased their buying power by a bit. But there was no buying a mansion for 2 ounces of silver, and staffing it with a harem of slave girls. . .
Argentina did not have the world's reserve currency. When the world decides to abandon the dollar as the sole reserve currency, gold will be used again for international settlements, and the only way that would work is for gold to get repriced at about $50,000 per ounce or so and then float, rather than stay at a fixed exchange rate per currency unit. So, gold holders are looking at a huge one time revaluation. For most, this is hard to put their head around. They suffer from normalcy bias and can't envision a paradigm shift of this magnitude.

So, there is still hope for a harem of slave girls...if you own enough gold now.

Sic semper evello mortem Tyrannis!
Glocksanity is offline   Reply With Quote