Is there a difference between currency and money? Yes! Currency is cash; it is a medium of trade. In the course of history there has been many varieties of currency, including sticks, rice and seashells. Currency is convenient and divisible. It is fungible, meaning my dollar is of equal worth to your dollar. Currency may be used to buy an item of value.

Money is exactly what currency is, but is also a store of value. Think of a merchant ship that sunk hundreds of years ago. If the ship had a chest full of currency, it would maintain its value, as gold doesn’t rust and silver can be cleaned. This cannot be said of a stick or paper money (more accurately, electronic digits used today), as it would have evaporated.

Worldwide Money Printing

Throughout history, anytime a state embarks on currency debasement, it becomes very hard to stop. More and more currency in circulation creates inflation, so that it takes more currency to purchase the same products and services that it did prior to the influx of currency into the economy. The Federal reserve has been drastically increasing the monetary base recently.

Money Leaving the Stock Market

Small time investors have withdrawn over $214 billion out of mutual funds since the start of 2010. After the US debt downgrade, these types of investors removed an additional $44 billion.

Some of those funds have shifted into US bonds, which is astonishing. People are searching for shelter from a failing currency, simply to loan their paper money to the same Gov. that is damaging said currency. If they haven’t moved their cash into bonds, it’s most likely placed in a bank account, accumulating no more than 1% interest. With real inflation running over 5%, it means they’re securing a loss of 4%. In simple terms, they’re voluntarily becoming 4% more poor each year.

If you had put your money into the DOW in 2000 and held on, you’d have gained roughly twenty-four percent. Alternatively, if you had acquired silver in 2000 you could have earned 550%; and had you sold close to its all-time peak of $50, it would have earned an easy 1000%.

Silver is Currently Greatly Undervalued to Gold

The established price ratio between gold and silver is 16:1. That immediately means silver should be trading near $100, but it ended 2011 at $27.50 an ounce. With gold in the $1550 vicinity, that sets the current ratio at 56:1. In other words, this should be a major buy indicator with reasonably limited down side risk.

Please visit Silver Liberties for more details about investing in silver.

Reasons to Think About Investing in Silver is a post from: The Financial Reader

Incoming search terms:

• kuwaiti dinar revaluation history