alt Hacker NewsMy local coin store was busier today than I've ever seen it (visit about once a quarter, for about a decade). Lots of people transacting silver — so much so that the buyback fees were about 50% more than usual — and yet people were primarily turning silver/USD into gold (myself included).
When you consider that historically our US fiat has been 65:1 (Au:Ag), it's scary to see the ratio back around the levels when Bretton Woods was implemented (50:1, 1930s-1960s). It's even scarier to see the rapid rate we are approaching to-when USD was gold-backed (22:1), considering that less than two years ago it was over 100:1 .
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What else is a fiat-based country supposed to do after creating all these unfunded pensions/liabilities ?— ¡¿..then to inflate away the guaranteed difference..?!
Out of curiosity, what are the transaction costs like for buying and selling physical gold/silver? I would imagine it to be quite costly, especially compared with spreads on equities.
I've wondered if maybe large metals funds get better rates, but also have no idea.