Well if you view a short time frame things do look like that, but in the perspective of its long term performance things do not look so good. Check the gains in the last decades and also factor in inflation and you will see that it has been quite under performing for a long time. A doubling of the price or tripling in 10 to 15 years is not really good performance, it does not include the inflation at all. If it did the gains are almost nothing. This is not really true, there is an extreme difference in what constitutes a middle class person depending on the country. For example if you compare the income of someone who is considered middle class in the USA to someone in some less developed African or Asian country. Gold remains quite accessible for many middle class people in many countries, but not all. The theory you mentioned here has nothing to do with what is happening, in reality it is actually the opposite of what you wrote. To make it worse it seems to me that you are trying to cite Gresham's law and apply it to a commodity which is always invalid. Because of that you have made a catastrophic error and your whole last part collapses. I repeat again Gresham's Law can not apply on things that are not money. The rising of prices of some commodity does not push out other commodities. What it often does is increase the demand for substitutes. As gold prices increased, the demand for silver has increased accordingly there is just some delay between these activities. The exact time in which this will happen can not be foreseen, but usually it should happen and that was demonstrated with this recent surge. As the price of silver has now increased too, something else will rise as well afterwards. There is no pushing out in free markets like this, things coexist and how they stay relevant depends on many things. Liquidity, preferences, volatility and such stuff.
Well if you view a short time frame things do look like that, but in the perspective of its long term performance things do not look so good. Check the gains in the last decades and also factor in inflation and you will see that it has been quite under performing for a long time. A doubling of the price or tripling in 10 to 15 years is not really good performance, it does not include the inflation at all. If it did the gains are almost nothing. This is not really true, there is an extreme difference in what constitutes a middle class person depending on the country. For example if you compare the income of someone who is considered middle class in the USA to someone in some less developed African or Asian country. Gold remains quite accessible for many middle class people in many countries, but not all. The theory you mentioned here has nothing to do with what is happening, in reality it is actually the opposite of what you wrote. To make it worse it seems to me that you are trying to cite Gresham's law and apply it to a commodity which is always invalid. Because of that you have made a catastrophic error and your whole last part collapses. I repeat again Gresham's Law can not apply on things that are not money. The rising of prices of some commodity does not push out other commodities. What it often does is increase the demand for substitutes. As gold prices increased, the demand for silver has increased accordingly there is just some delay between these activities. The exact time in which this will happen can not be foreseen, but usually it should happen and that was demonstrated with this recent surge. As the price of silver has now increased too, something else will rise as well afterwards. There is no pushing out in free markets like this, things coexist and how they stay relevant depends on many things. Liquidity, preferences, volatility and such stuff.

Well if you view a short time frame things do look like that, but in the perspective of its long term performance things do not look so good. Check the gains in the last decades and also factor in inflation and you will see that it has been quite under performing for a long time. A doubling of the price or tripling in 10 to 15 years is not really good performance, it does not include the inflation at all. If it did the gains are almost nothing. This is not really true, there is an extreme difference in what constitutes a middle class person depending on the country. For example if you compare the income of someone who is considered middle class in the USA to someone in some less developed African or Asian country. Gold remains quite accessible for many middle class people in many countries, but not all. The theory you mentioned here has nothing to do with what is happening, in reality it is actually the opposite of what you wrote. To make it worse it seems to me that you are trying to cite Gresham's law and apply it to a commodity which is always invalid. Because of that you have made a catastrophic error and your whole last part collapses. I repeat again Gresham's Law can not apply on things that are not money. The rising of prices of some commodity does not push out other commodities. What it often does is increase the demand for substitutes. As gold prices increased, the demand for silver has increased accordingly there is just some delay between these activities. The exact time in which this will happen can not be foreseen, but usually it should happen and that was demonstrated with this recent surge. As the price of silver has now increased too, something else will rise as well afterwards. There is no pushing out in free markets like this, things coexist and how they stay relevant depends on many things. Liquidity, preferences, volatility and such stuff.

Well if you view a short time frame things do look like that, but in the perspective of its long term performance things do not look so good. Check the gains in the last decades and also factor in inflation and you will see that it has been quite under performing for a long time. A doubling of the price or tripling in 10 to 15 years is not really good performance, it does not include the inflation at all. If it did the gains are almost nothing. This is not really true, there is an extreme difference in what constitutes a middle class person depending on the country. For example if you compare the income of someone who is considered middle class in the USA to someone in some less developed African or Asian country. Gold remains quite accessible for many middle class people in many countries, but not all. The theory you mentioned here has nothing to do with what is happening, in reality it is actually the opposite of what you wrote. To make it worse it seems to me that you are trying to cite Gresham's law and apply it to a commodity which is always invalid. Because of that you have made a catastrophic error and your whole last part collapses. I repeat again Gresham's Law can not apply on things that are not money. The rising of prices of some commodity does not push out other commodities. What it often does is increase the demand for substitutes. As gold prices increased, the demand for silver has increased accordingly there is just some delay between these activities. The exact time in which this will happen can not be foreseen, but usually it should happen and that was demonstrated with this recent surge. As the price of silver has now increased too, something else will rise as well afterwards. There is no pushing out in free markets like this, things coexist and how they stay relevant depends on many things. Liquidity, preferences, volatility and such stuff.