Cirelaw,
I agree with your grandfather, people will always recognize the value of gold and silver.
A friend of mine imparted his wisdom of “candy bar social economics” to me a few years ago and it made so much sense that it has stuck. In the theory of candy bar social economics he stated that when he was a kid in the late fifties he could go to a bank and buy a silver dollar for $1.00. With that same silver dollar he could go to the store and buy 20 candy bars. Most people don’t realize it but the US Mint still produces silver dollars called Silver Eagle’s with a face value of $1.00. For the purchase price of that Silver Eagle he could today buy 20 candy bars.
It amazes me that every time there is economic fear, there is a run on silver coins. I do wander if this is to ensure the stability in the price of candy bars.
