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My Take And Strategy On Pms, Looking For Input?

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Valued Member
United Kingdom
183 Posts
 Posted 02/17/2014  2:09 pm  Show Profile   Bookmark this reply Add HawkHybrid to your friends list Get a Link to this Reply

Quote:
A year ago an ounce of silver could pay my transportation for 5 days. Today it only covers a fraction of that cost. There's really no guarantee.


there's never a guarantee, pm's usually hold their value
better than iou's/paper money. Just look a zimbabwe's
currency?

pm's are not fixed and will fluctuate with demand and supply.
if you need to trade at a point when the pm's price is at it's lowest in that particular cycle then you'll sell it
under it true value(quick car sale)

if it cost 10 cents to produce, is a 5 cent really only
worth 5 cents?

HH
Bedrock of the Community
basebal21's Avatar
13014 Posts
 Posted 02/17/2014  7:05 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply

Quote:
pm's usually hold their value
better than iou's/paper money.


The only surefire way to hold wealth value is to have it growing over time. If you look at PMs theres times when you lost value, times that it was even, and times it gained. It all depended on when you bought though. You never heard anything about holding value in the 90s or early 2000s because it wasnt, but now that we entered a period where it does people hype that up.

Plus you also have to factor in the selling aspect of it where youll either lose some of the value selling to a store or lose from fees to a site like ebay. Plus whatever premium you paid to purchase it in the first place.

Zimbabwe also isn't a comparable to a first world country either. They have 0 impact on the world economy and were a tiny one to begin with.


Quote:
if it cost 10 cents to produce, is a 5 cent really only
worth 5 cents?


Yes, thats all it can be spent for. Unless you want to argue 100 dollar bills are only worth the few cents it costs to make them or a dollar coin is only worth a fraction of that as well.
Valued Member
United Kingdom
183 Posts
 Posted 02/17/2014  8:26 pm  Show Profile   Bookmark this reply Add HawkHybrid to your friends list Get a Link to this Reply
if zimbabwe's currency was backed by gold do you think it would have changed anything?

a crook may disagree with what the 5 cents coin is worth?

HH
Pillar of the Community
nalaberong's Avatar
Canada
2805 Posts
 Posted 02/17/2014  9:43 pm  Show Profile   Bookmark this reply Add nalaberong to your friends list Get a Link to this Reply
The cost of production doesn't have anything to do with the price of the result... if I cast myself a pretty silver bar and my silver-meltin' furnace is fueled by burning $100 gold certificates, I might have lost a lot of money but the bar doesn't gain the wasted money's value...
Valued Member
United Kingdom
183 Posts
 Posted 02/18/2014  09:29 am  Show Profile   Bookmark this reply Add HawkHybrid to your friends list Get a Link to this Reply
I was under the impression that if you were to melt and sell the
metal of a 5 cent coin you would get 5-10 cents per coin.
thus it's illegal to do so.

HH
Pillar of the Community
nalaberong's Avatar
Canada
2805 Posts
 Posted 02/18/2014  6:58 pm  Show Profile   Bookmark this reply Add nalaberong to your friends list Get a Link to this Reply
No, the metal value remains under 5 cents.
Bedrock of the Community
basebal21's Avatar
13014 Posts
 Posted 02/18/2014  6:59 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply
I think their melt value is under 5 cents right now anyway. Even if it was over though there would be cost associated with separating the metals. Its more than likely just illegal as a precaution if the metal price moved enough to make it worth it since it costs them more to make. Anything that costs over face to make will be made illegal to melt for circulating coins
Valued Member
woodywood's Avatar
United States
102 Posts
 Posted 02/18/2014  9:11 pm  Show Profile   Bookmark this reply Add woodywood to your friends list Get a Link to this Reply
did you know that the ruler of ROME in around the year 200 that the ruler NERO being a man lookin out for the "citizens of ROME" went on down to the "MINT" and had 10% of the silver taken out of the coins of the time and had 10% copper used THEN after a while the 'citizens" of ROME found out and , well they were then 10% short on the end but Mr. NERO had the silver he needed to well do what he wanted ?
Pillar of the Community
nalaberong's Avatar
Canada
2805 Posts
 Posted 02/18/2014  9:16 pm  Show Profile   Bookmark this reply Add nalaberong to your friends list Get a Link to this Reply
Cool! I wonder what other lessons modern American finance could learn from ancient Rome? Probably a lot, right?
Valued Member
woodywood's Avatar
United States
102 Posts
 Posted 02/19/2014  07:40 am  Show Profile   Bookmark this reply Add woodywood to your friends list Get a Link to this Reply
The biggest lesson is that the leader a a powerful nation lied to the people and had a secret agenda that would destroy their faith in that leader and cause the fall of a once great society and nation !
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