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109 sats \ 2 replies \ @Undisciplined 3 Dec \ parent \ on: $1 in 1870=4 cents now econ
The problem with silver is that it’s value is primarily industrial rather than monetary and there are a bunch of uses for silver in technology that didn’t exist back then.
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173 sats \ 1 reply \ @freetx 3 Dec
The problem with silver is that it’s value is primarily industrial rather than monetary and there are a bunch of uses for silver
Maybe, but it has risen far less than gold since 1971. Up until 71' by decree the ratio was 1/35 - now the ratio (in prices) is 1/72.
Silvers 'industrial demand' has been far offset by its demonetization .... it seems that its biggest use was "coinage" before and that far outweighed its current industrial demand.
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50 sats \ 0 replies \ @Undisciplined 3 Dec
It’s fair to note the offsetting factors but being subject to such fundamental changes in demand makes it suspect as a steady measure of value.
Gold has basically just been valued as a store of value the whole time and it actually helps that it wasn’t heavily used in exchange because that didn’t change radically.
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