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Silver Bullion and Gresham's Law Going East

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Silver Bullion and Gresham's Law Going East Powered By Docstoc
					Silver	
  Bullion	
  and	
  Gresham's	
  Law	
  Going	
  East	
  	
  
	
  
Silver	
  is	
  not	
  going	
  away.	
  	
  Its	
  ongoing	
  popularity	
  seems	
  to	
  fly	
  in	
  the	
  face	
  of	
  the	
  
modernist,	
  the	
  Keynesian	
  and	
  the	
  visionary	
  who	
  dreams	
  of	
  a	
  world	
  without	
  physical	
  
currency	
  or	
  money	
  at	
  all.	
  Despite	
  their	
  viewpoints,	
  silver	
  and	
  other	
  precious	
  metals	
  
remain	
  sought	
  after	
  and	
  valued	
  by	
  many	
  investors.	
  	
  
	
  
Humans	
  in	
  developed	
  countries	
  often	
  seem	
  obsessed	
  with	
  technology	
  and	
  
modernity,	
  but	
  they	
  still	
  sit	
  in	
  chairs,	
  read	
  with	
  their	
  eyes,	
  and	
  repeat	
  the	
  same	
  
behaviors	
  over	
  and	
  over	
  again.	
  
	
  
To	
  the	
  conventionally	
  informed,	
  silver	
  and	
  gold	
  may	
  seem	
  a	
  barbaric,	
  outdated	
  and	
  
bulky	
  form	
  of	
  currency.	
  To	
  the	
  elite,	
  these	
  metals	
  are	
  relics	
  to	
  be	
  hated	
  and	
  
suppressed	
  because	
  they	
  represent	
  that	
  which	
  threatens	
  their	
  livelihood.	
  	
  
	
  
Precious	
  Metals	
  Have	
  Retained	
  Their	
  Value	
  but	
  Remain	
  Under-­‐owned	
  
	
  
Yet	
  the	
  precious	
  metals	
  are	
  still	
  around	
  and	
  have	
  retained	
  their	
  value.	
  	
  They	
  are	
  not	
  
tulips	
  nor	
  a	
  dot	
  com	
  stock	
  that	
  might	
  be	
  prone	
  to	
  bubbles,	
  largely	
  because	
  their	
  
unique	
  properties	
  give	
  them	
  intrinsic	
  value	
  that	
  makes	
  them	
  universally	
  desirable.	
  
	
  
Precious	
  metals	
  like	
  silver	
  and	
  gold	
  are	
  widely	
  recognized,	
  liquid	
  and	
  easy	
  to	
  trade.	
  	
  
Their	
  fundamental	
  value	
  means	
  they	
  need	
  to	
  pay	
  no	
  interest	
  or	
  dividend	
  as	
  a	
  bribe	
  
for	
  investor	
  ownership.	
  	
  
	
  
Yet	
  these	
  metals	
  remain	
  under-­‐owned	
  at	
  the	
  very	
  time	
  where	
  the	
  actual	
  ownership	
  
of	
  an	
  asset	
  that	
  cannot	
  be	
  created	
  at	
  will	
  is	
  in	
  severely	
  short	
  supply.	
  	
  	
  
	
  
Read	
  more	
  here.	
  

				
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Description: Silver bullion may be out of favor with Western mainstream, but China certainly recognizes the low price of silver and the benefits of encouraging it's citizens to buy silver ahead of inflation - or the keep them quiet.