Understanding Carl Menger would make anyone very hesitant t…
Understanding Carl Menger would make anyone very hesitant to own silver over any extended period.
The road from 10:1 to 100:1 was in a sense predestined. Don't get tricked buying unless you know what you're doing!
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Pls explain
Menger described the dynamic that took the world from hundreds of monies (seashells, beads, cloths, horses etc) to just gold and silver. This dynamic stems from relative saleableness of commodities. Individuals will over time use the least costly MoE.
After redeemable paper currencies emerged, silver slowly lost its role. The metal had facilitated smaller economic exchanges to lower cost than gold. With paper, gold could be exchanged in small values as well. Gold-silver ratio increased: 10 -> 100.
According to Buckminster Fuller, Silver is going to be the first element to go extinct on planet earth, because of its specific qualities, that make it very useful for the industry. It has the highest electrical and thermal conductivity of all metals f.e.
Industrial use doesn't matter, that's not where most value is. Silver is used much more in industry than gold, yet holds 1/50th or so of gold's mkt cap.
Real value (and money) is in least costly Medium of (Indirect) Exchange.