VANCOUVER ( Silver Gold Bull) -- In our daily lives, we learn that there are many immutable principles of cause and effect. Drop an object and it will fall down, not up. Throw a rock at a pane of glass and it will break. Put an ice cube in the sun and it will melt.So, too, is it with the cause and effect known as dilution. Whether we are an adult buying watered-down booze from a bar or a child buying a watered-down beverage from a lemonade stand, we immediately comprehend that diluting the product has reduced its value and thus we refuse to pay the same price for it.
The Implication of Currency Dilution
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