Among the many arguments in favor of gold and silver are the facts that they have intrinsic value. As you saw in the last chapter, intrinsic value is a tangible value inherent in an item. Intrinsic values are not simply those that an item may possess for a certain amount of time, even if that time is a long span of time. Intrinsic values are those that are good forever. This refers to an item whose value is as constant today as it proved to be thousands of years ago, over all of those long millenniums.
Very few items actually possess intrinsic value like gold and silver, except shelter and food. This is because these precious metals have remained in heavy demand
for all of these thousands of years. Their other characteristic that gives them real intrinsic value is the fact that they are still capable of buying the same amount of goods now as they did even in the ancient world.
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The Silver Fortune Formula - How to Make Extraordinary Profits from the Silver Bull Market An example of this that is always given out is an expensive custom suit. A hundred years ago, such a suit could be purchased for a $20 gold piece comprised of one
ounce of gold. Today the same suit will cost you about $1,200, which is actually less than a single ounce of gold.
What other asset in the world can make the same claim as gold and silver?
Intrinsic value can also be described as the item’s real value or actual usefulness.
Gold is useful for making beautiful jewelry and as a historic store of value, much as it has been for at least five thousand years.
Silver on the other hand, has tremendous usefulness as a component of its value.
You may have heard that silver has ten thousand different uses in the modern day manufacturing process. There is not any other material on earth, besides maybe oil, that has so many practical applications.
Diversity proves to be a key component of silver’s amazing intrinsic value. Silver is used in most any item that is a part or process of you normal day. The one of a kind metal possesses strength, beauty, ductility, malleability, sensitivity to light, thermal and electrical conductive properties, reflective properties, and the useful capability of resisting vast changes in temperature.
All of these characteristics permit scientists and engineers alike to utilize silver for revolutionary research that meaningfully impacts your quality of life. This demand for the metal silver finds its basis in three principal pillars, those of industrial and decorative applications, photography needs, and silverware and jewelry.
Between the three of them, in excess of 95 percent of the silver utilized every year is consumed. It is also interesting for you to know how much more silver goes into industrial applications than goes into jewelry. Almost three times as much silver is used every year for industrial uses as is used for jewelry needs.
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The Silver Fortune Formula - How to Make Extraordinary Profits from the Silver Bull Market Silver is in intensely heavy demand for industrial sectors ranging from electronics, to imaging, to coinage, to jewelry, to water purification, to superconductivity.
Silver makes superior batteries, which are increasingly finding their way as the replacement to lithium ion batteries in both laptops and cell phones. It is an
important component of heavy bearings that are used in trucks and jet engines.
It makes superior brazing and soldering materials for joining other metals together at high temperatures. Silver is also a major catalyst in industrial change processes.
Finally, silver’s industrial uses encompass a wide range of electronics of which it is a critical component, such as switches, television screens, and circuit boards. There is no overstating the useful component of the intrinsic value of silver.
Because of gold and silver’s highly enduring intrinsic value, they can both be
exchanged for goods with reliable certainty. This is as true today as it was in the Ancient Greek and Roman worlds, in the medieval towns and kingdoms of Europe,
or in the modern age in any corner of the world.
As sad as it is to ponder, you can not say with any confidence whether you will be able to use a paper currency such as the dollar for a reliable quantity of goods and services fifty years from now.
You can count on gold and silver being effective stores of value that will
purchase a comparable or greater amount of goods and services in the future as