“Like any profession, we tend to use concepts and words that are unknown to most people not in that profession. We talk about fiat money, velocity of money, all of the “Ms” for various calculations of the money supply. We debate about inflation or deflation where the definition of those terms has different meanings to different people.
So let us try to simplify this. Let’s assume that you have purchased a U.S. Silver Eagle coin, roughly 1 ounce of silver, for around $30. You put the coin on a table as well as the equivalent of $30 in your currency of choice. The two are very different. One represents a mechanism to enable the holder to exchange goods and services, and the other can be used as both a medium of exchange and a store of wealth. The latter is the silver coin.
The currency has no intrinsic value other than the heat energy of the paper on which it is printed. It does have “utility”, though.
Read the complete article at King World News here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.