First, it is inflationary. Second, unlike fiat it has a significant cost to produce increasing amounts and this automatically acts as a stabiliser (one of the key benefits of a commodity being used as money). Third what formerly geewhiz said (but this is not as important as the previous point).
Correct, mining silver and gold is a type of inflation, but this is a healthy inflation, and could be easily adjusted by import/export.
IMO because it the rate of mining gold and silver is slower than the expanding economy. .e.g. population increase, increase in goods and services.
It's all about the demand for money or silver. Printing more money is not nessisarily bad, as long as there is an increase in demand for that money. Same with silver, as long as there is demand for silver, and the demand is not dwarfed by the amount minned then it's all good
mining silver and gold decreases the value of silver and gold that has already been mined aka its inflation
I read many things and contitute my opinion on my readings over time, one article from the internet will not convince me Gold is NOT money. If you tie your wealth up in chickens then the chickens become the money. Its merely a term for a exchangeble medium, the medium can be any tangible tradeable thing.
Gold is the ultimate money. Why the f*** would central banks buy it otherwise. It's not tradition - it's because when your economy's gone to shit and your currency dies, it's the only fungible thing that a broken country is going to have as chips on the table.
