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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (50805)1/22/2006 6:52:55 PM
From: regli  Read Replies (1) of 110194
 
I agree that silver has far fewer monetary properties than gold. However, if my vision of the future unfolds then we are looking at some rather unstable times both on the monetary and geopolitical front.

On the monetary side, should we hit a severe downturn then developing countries and their currencies will be hit very hard. People in these countries will hoard silver simply because they cannot afford to hoard gold. Silver has been money for a long, long time and silver is an alternate term for money in many languages.

As to the geopolitical side, silver has many, many industrial uses. Should we see heightened instability and therefore an arms buildup, silver usage will hardly decline if at all. As it is in a significant production deficit at this point, I would be extremely surprised if it wouldn't do well.

In the unlikely event that we muddle through, then the supply deficit will result in a price spike in the not so distant future. I believe it is one of the most volatile but also safest investments out there at this time.
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