Originally Posted by
Jilsponie
Supply and demand goes both ways... Both for items, and for gold. With a large supply of gold/currency in circulation, it losses it's value. So the demand on the items will stay the same, thus the value will be the same, but the gold itself will lose value.
It's basic economics really. This is why the federal reserve limits the currency in circulation. If they just kept printing money all day and flooding the market, it would lose its value.
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