What is Currency Debasement

What is Currency Debasement

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The debasement of currency is a problem that has plagued economies at all points in history. It is a term used to describe the process by which the intrinsic value of a nation’s currency is purposefully lowered, a process that governments or central banks frequently carry out. This form of manipulation often entails lowering the amount of precious metal contained in coins or backing provided for paper money, ultimately leading to a decline in the currency’s value over time. 


As the value of a currency declines, investors and individuals look for haven in hard assets such as gold, silver, real estate, and other tangible resources that are better able to maintain their worth. This piece looks into the idea of currency debasement, investigates the allure of hard assets, and emphasizes how important it is for the value of hard assets to be preserved because of their inability to be replicated.

Understanding Currency Debasement

Currency debasement has a long and storied history, dating back to ancient civilizations. In early times, coins were often made from precious metals such as gold and silver, and their value was directly linked to the metal’s weight and purity. However, governments occasionally resorted to shaving off some of the metal or replacing it with cheaper materials, effectively devaluing the currency without altering its appearance significantly. The debased coins would then be circulated at the same nominal value, resulting in a hidden tax on the people, as their purchasing power diminished while prices remained unchanged.


In modern times, currency debasement takes different forms. Central banks may pursue expansionary monetary policies, such as printing money or lowering interest rates, to stimulate economic growth. While these measures can have short-term benefits, they also risk inflationary pressures, reducing the currency’s value. Inflation erodes the purchasing power of money, leading to higher prices for goods and services and effectively decreasing the standard of living for individuals and households.

The Appeal of Hard Assets

In response to currency debasement and the erosion of purchasing power, investors and individuals turn to hard assets to preserve wealth. Hard assets possess an intrinsic value not tied to the whims of governments or central banks. These tangible resources have characteristics that make them attractive during times of economic uncertainty and currency devaluation.

Inherent Value

Historically, hard assets like gold and silver have been treasured for their beauty, rarity, and utility. They are sought after for use in jewelry, technology, and industrial applications, ensuring a steady demand even in challenging economic conditions. Unlike fiat currencies, hard assets cannot be created or manipulated by governments, providing a stable store of value.

Hedge Against Inflation

During periods of high inflation, currency’s value declines rapidly, making it a less reliable store of wealth. In contrast, hard assets tend to retain their value or even appreciate during inflationary times. This inflation hedge quality makes them an attractive option for investors seeking to preserve their purchasing power over the long term.

Limited Supply

Hard assets have finite supplies, which adds to their appeal. For example, gold and silver reserves are relatively limited, and mining new deposits can be expensive and time-consuming. This scarcity contributes to their enduring value and safeguards against value dilution.

Diversification Benefits

Investing in hard assets offers diversification benefits to a portfolio. Their performance often moves independently of traditional financial assets like stocks and bonds, reducing overall investment risk. By diversifying across asset classes, investors can mitigate potential losses during economic downturns or currency crises.

Inherent Value: Hard Assets vs. Currency

One of the fundamental differences between hard assets and currency lies in their intrinsic value. Hard assets possess inherent worth due to their utility, rarity, and demand across various industries and applications. Their value is not dependent on human agreements or decisions. On the other hand, fiat currencies derive their value from the trust and confidence of people in the issuing government and its economy.


Moreover, hard assets cannot be easily copied or reproduced, ensuring their scarcity remains intact. For example, gold and silver cannot be artificially created or duplicated like currency can be printed. As a result, hard assets maintain their value over time, with a limited risk of dilution due to oversupply. This characteristic contrasts starkly with fiat currencies, which can be printed in unlimited quantities, leading to inflation and eventual loss of value.


Currency debasement has been a recurrent problem throughout history. As a result, people’s purchasing power has fallen, and their trust in fiat currencies has diminished. Because governments and central banks are taking steps to stimulate economies, there is a significant possibility that inflation and currency devaluation will occur. As a countermeasure, financial backers and private individuals look to hard assets such as gold, silver, real estate, and other tangible resources for safety.


Hard assets have always been popular due to their high intrinsic value, restricted availability, and consistent performance. In contrast to fiat currencies, hard assets cannot be easily manipulated or reproduced, guaranteeing their value will be maintained throughout time. Incorporating hard assets into an individual’s or an investor’s portfolio can act as a helpful hedge against currency debasement and create a sense of security in economic uncertainty. This is especially true as individuals and investors navigate an economic environment that is always shifting. 


However, to guarantee that the investment decisions they make align with their financial objectives and the level of risk they are willing to take, investors need to perform exhaustive research and seek the counsel of professionals. Individuals can take preventative measures to protect their wealth and maintain their purchasing power over the long term by being aware of the factors contributing to currency debasement and the advantages of hard assets.


So you have decided to buy silver online.

Great choice. Let’s talk about silver.

Silver is exceptionally popular today. Part of the reason for this is the belief that it’s potential for upside value increase is even greater than the same belief in gold. In fact, there is a very good book on this subject entitled: “ Why Silver Will Outperform Gold by 400% in the coming years”. It’s a very scholarly book and quite convincing. Give it a read if you have the time.

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Mind you, one need not look as far as that book to find evidence of the common belief that silver has great potential for growth in the near future. All one has to do is go to the web or even Youtube and there are advocates of this thought at every turn.

At Durham Precious Metals we believe that silver is an easy choice because it gives a sense of substance due to its lower cost per ounce than gold.

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Probably 90% of our business is silver sales so this sentiment is fairly unanimous throughout the public. 10oz bars seem to be the most popular. Generic rounds and Silver Maples seem to be the next most popular and 1oz bars a close 4th place. It is our opinion that 10 oz bars and 1oz rounds are your best value as their premium over spot is very reasonable. However, there is no wrong choice when it comes to our silver product line because we try to concentrate on product lines with low premiums anyway.

Silver has always been a form of money. There are those that will argue that silver has been demonetized but we beg to differ. All one has to do is refer to the (CCRA) definition for 999 bullion. It is deemed by Rev Can to be a “ financial instrument”. Enough said on that subject!

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From a utility standpoint, silver has somewhere in the neighbourhood of 60,000 industrial uses including painting the backs of mirrors to create the reflective surface to collecting radiation in solar panels. If nothing else, the lack of an above ground supply of silver ( which is relatively new historically) will keep the demand for this metal strong since for most applications there is no viable substitute.

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Can you imagine the mayhem that would ensue if all the major electronic manufacturers came grinding to a halt due to a silver shortage? It would be catastrophic to the economy. We believe that this fact alone will be a major driver of support for the silver price when the powers that be run out of tricks in their attempt to suppress the price of silver. And yes, we agree that this practice goes on in plain sight and that the regulators turn a blind eye. Let’s hope justice prevails and that the historic silver/gold ratio returns to its traditional level.

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In the meantime…keep stacking!

So you have decided to buy gold online.

Great choice! Let’s talk about gold then, shall we?

Gold is, and always has been, a favorite of collectors of precious metals. Its 6000-year history of sustaining wealth is unprecedented. The yellow metal has launched wars, bought fortunes and has been a form of money throughout that history. It is one of the densest metals and also one of the densest elements on the periodic table. It weighs in at a density of 19.32 grams per cubic centimeter. Water, by contrast, has a density of 1 gram per cubic centimeter.

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Platinum is the densest of the common 4 precious metals at 21.45 grams per cubic centimeter.

People will often ask when gold is the right choice to buy as opposed to other metals such as silver. This is a very common question. There is no easy answer that anyone can give to someone so we always boil it down to practical applications.

Gold Bullion

Consider how much of an investment you are planning to make over-all throughout the course of your precious metals buying.  If you are planning on purchasing, for example, $10,000 worth of metals and then cap your spending then it really doesn’t matter which metals you buy. The volume of the purchase will be relatively small in terms of weight and size. Our main concern and Durham Precious Metals comes down to simple things like , cost of storage, cost of shipping and bulk. We are always trying to help our customers have the best experience as metals collectors.

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For example, if you were to tell us that you are considering selling a piece of real estate and use the proceeds to buy metals then gold would be our suggestion. The reason comes down to volume and weight at this point. Several hundred thousand dollars of silver would be an incredible amount of bulk at this spend level. Hundreds of pounds of silver would be hard to store practically and would be more expensive to store as well. If you are the DIY type it would also be harder to hide than a comparable dollar amount of gold.

Keep in mind that at the time of this writing gold is about 75 times more expensive in dollar terms as the same weight of silver. That equates to 75 times less bulk per dollar spend. This will make it much easier to hide or store if you are looking at large purchase amounts.

Price of Gold?

If you are only considering a small total purchase amount either of the metals is perfectly fine. The one consideration we always emphasize for small purchase amounts really comes down to personal perception. Here is what we mean. Silver is 75 times more bulky per dollar spend. Obviously, it is going to feel a lot more substantial if you buy $5000 worth of silver and have several hundred ounces to admire than only about 3 ounces. It’s a perception thing at this point but perception matters to people since perception can make us feel a particular way about what we spend our money on.

In closing, gold and silver are both great choices and neither is wrong in terms of their value of utility. They have both had a long history as a store of wealth and that isn’t likely to change any time soon.

Buy both with confidence. Buy Gold Online

We often carry pieces that we don’t list on site so feel free to call us for an up-to-date list.

About DPM

When you consider silver value and gold value, the wise choice is to stock up today. At Durham Precious Metals we make it easy and convenient to buy silver and buy gold online.

For those who are serious about investing in gold and silver bullion, DPM is your one-stop store to buy gold and buy silver, whether it be through our website or our retail store.

Many people want to know where to buy gold and do not realize they can avoid the traffic hassle of driving into the city and visit us at DPM located in Oshawa, Ontario. See our Retail Store page for directions. Our customers are delighted with our competitive silver price. We carry mint direct silver bars, silver coins, gold bars and gold coins.

Make Durham Precious Metals your choice for gold and silver bullion.

Consider a Gold IRA as well