I know that if the dollar loses value than the price for silver becomes extremely high(even higher than Gold correct?). So if silver is worth $35 USD per oz currently and a financial crisis sets that to $160 USD per oz, how exactly do you benefit from that? If you bought 100oz of silver at $35 USD what difference does it make if inflation sets the price to $160 USD per oz if the currency itself is worthless. What do you do with the silver that makes a difference? Do you invest it somewhere or exchange it for a different currency?
Same with gold or other precious metals,the price should inflate but the currency itself becomes worthless. Also, is it logical to assume that the price of silver should soar even higher since it is being used in ways that it cannot be redistributed back for sale or use? Silver is used everywhere today, even in medicine - but are the resources for silver plentiful enough to expect that the price shouldn't be rising rapidly because of a growing economies needs for the metal?
Thank you for taking the time out to answer my question
So if precious metals are just a stable investment, how is it then that people make money from precious metals? Since it's just the value of the currency that goes up and not the actual stable price of the precious metal does that mean it's just a good way to keep money safe/stable rather than make profit?
The price of precious metals is determined by the value of the currency, correct? But what determines the value of the currency then? If the price of silver fluctuates according to inflation, and inflation occurs because of mass production of currency, what determines the buying power of the currency? In this case, the USD.
Same with gold or other precious metals,the price should inflate but the currency itself becomes worthless. Also, is it logical to assume that the price of silver should soar even higher since it is being used in ways that it cannot be redistributed back for sale or use? Silver is used everywhere today, even in medicine - but are the resources for silver plentiful enough to expect that the price shouldn't be rising rapidly because of a growing economies needs for the metal?
Thank you for taking the time out to answer my question
So if precious metals are just a stable investment, how is it then that people make money from precious metals? Since it's just the value of the currency that goes up and not the actual stable price of the precious metal does that mean it's just a good way to keep money safe/stable rather than make profit?
The price of precious metals is determined by the value of the currency, correct? But what determines the value of the currency then? If the price of silver fluctuates according to inflation, and inflation occurs because of mass production of currency, what determines the buying power of the currency? In this case, the USD.