Silverphil you could well be on the right track in suggestion paper money will be hugely depreciated and gold and silver will turn into the currency of last resort. A sort of Armageddon?
BUT As always it is highly unlikely that the predicted and anticipated will occur. That worldwide currencies will devalue in a greatly excessive manner in a brief period of time as many appear to be predicting.
The paper currency held now is increasing in value. Australians are able to purchase cars, tools, clothes for prices unbelievable in the past. Deflation rules! No reason to believe this will not be maintained for a while providing the total of the amount of money printing is not overweighted in proportion to the total of world finance.
A trigger for inflation is a likely requirement. If world demand for oil increases strongly and price escalates and then a huge event causes a shortfall in supply this could be the trigger. But it would require a series of such shocks. Consumer resistance to significant inflationary outbreaks generally tempers the effect.
The precautionary principal might be modified in this matter-------- The enormous amount of money printing required for paper currency Armageddon may not occur "in our lifetime". It should not be for anyone investing in PM to get too exited about the possibility.
HOWEVER Holders of silver may be hopeful that there will be sufficient shocks in world finances to cause a stampede towards PMs. That perceptions brought to the fore with QEs will result in revaluing gold and silver as a safe haven. That another surge in silver price to $50 within 24 months or less is hopeful. To $100 soon? Probably just dreaming.
Remember your guess is as good as ------
Vidi
CCU Price at posting:
61.1¢ Sentiment: Buy Disclosure: Held
