Comment: Is there really a spike in prices?

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Is there really a spike in prices?

One thing that would be worthwhile to do (disclaimer: I haven't done so) is to compare the price of silver in US dollars vs in other currencies. Of course, fiat money is being printed by central banks all around the world (though in different amounts). But the point is that the price will vary from currency to currency.

From what I know from Peter Schiff, the reason to own paper over a hard asset (e.g. gold and/or silver) is that paper pays interest. However, with the current record low interest rates you don't even get that. So it brings up the question of "why not own gold/silver?"

There is one other important concern, however. You have to pay taxes on the increase in value of your precious metals. So in theory if you buy silver at $30 per ounce and you spend it when it's at $35 an ounce, you have to pay taxes on the $5 in gains (not sure how the tax rates work). Ron Paul has talked about this saying we need to repeal the "legal tender" laws.

http://www.ronpaul.com/2008-09-28/ron-paul-on-legal-tender-l...