Forget Gold, Use Silver as Currency
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- Ad Orientem
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Forget Gold, Use Silver as Currency
http://tinyurl.com/bdx4xd6
Not a big fan of hard currencies. But I have long argued that gold is too limited in quantity to serve as a viable global currency in the 21st century, and that silver was the only viable choice for a metal based monetary system.
Not a big fan of hard currencies. But I have long argued that gold is too limited in quantity to serve as a viable global currency in the 21st century, and that silver was the only viable choice for a metal based monetary system.
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Re: Forget Gold, Use Silver as Currency
"Silver is less expensive than gold, which makes it easier to transport and use."
(from the linked-to article)
Yes, of course it is much easier to transport many pounds of silver than a few ounces of gold.
(from the linked-to article)
Yes, of course it is much easier to transport many pounds of silver than a few ounces of gold.
- Ad Orientem
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Re: Forget Gold, Use Silver as Currency
I think you are missing his point. If gold were the currency how exactly would you pay for your Subway foot long $5.00 special? What size gold coin would work there? Silver on the other hand would be doable.Libertarian666 wrote: "Silver is less expensive than gold, which makes it easier to transport and use."
(from the linked-to article)
Yes, of course it is much easier to transport many pounds of silver than a few ounces of gold.
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- Pointedstick
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Re: Forget Gold, Use Silver as Currency
http://www.combibar.com/ ?Ad Orientem wrote: [...] If gold were the currency how exactly would you pay for your Subway foot long $5.00 special? What size gold coin would work there? Silver on the other hand would be doable.
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Re: Forget Gold, Use Silver as Currency
A 1g gold bar is worth about $45 at current spot. That's one hell of a tip for a $5.00 sandwich. Can I wait on you?Pointedstick wrote:http://www.combibar.com/ ?Ad Orientem wrote: [...] If gold were the currency how exactly would you pay for your Subway foot long $5.00 special? What size gold coin would work there? Silver on the other hand would be doable.
Last edited by Ad Orientem on Thu Apr 25, 2013 11:22 am, edited 1 time in total.
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Re: Forget Gold, Use Silver as Currency
Hahaha, touché!
For the record, I think using actual gold for your day-to-day transactions would probably be an unwieldy mess, although I'll admit I don't know a lot about the history. Didn't people use copper and silver coins for most of their transactions?
For the record, I think using actual gold for your day-to-day transactions would probably be an unwieldy mess, although I'll admit I don't know a lot about the history. Didn't people use copper and silver coins for most of their transactions?
Last edited by Pointedstick on Wed Apr 24, 2013 6:09 pm, edited 1 time in total.
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Re: Forget Gold, Use Silver as Currency
Prior to the 19th century most of the world was on a defacto silver standard. Gold was used only for large transactions. This slowly began to change in the post Napoleonic world. In the 1870's the US and Prussia became the last major countries to adopt the gold standard. But this was facilitated with paper money that was supposed to be backed by specie. In the modern world I don't think that would work because unlike in the 19th century there would be no effective convertibility of paper money for anything below $10,000. That would mean that we effectively were just taking the government's word when they said they had the gold to back the paper issue. And it's worth noting that even during the heyday of the gold standard there were chronic shortages of money in much of the country between the two coasts. The farther you got from New York and the East Coast banking establishment with exceptions in Chicago and San Francisco the more likely you were to experience a money shortage.Pointedstick wrote: Hahaha, touché!
For the record, I think using actual gold for your day-to-day transactions would probably ba an unwieldy mess, although I'll admit I don't know a lot about the history. Didn't people use copper and silver coins for most of their transactions?
Given the volume of trade in the modern world, gold would be an insane basis for money.
Last edited by Ad Orientem on Wed Apr 24, 2013 5:37 pm, edited 1 time in total.
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Re: Forget Gold, Use Silver as Currency
Perhaps a gold alloy? (Yeah, yeah, I know -- big risk of counterfeiting)
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Re: Forget Gold, Use Silver as Currency
I'd be happy to accept private warehouse receipts from a trusted company, denominated in centigrams or the like, for small transactions. The idea is that you would make deposits, for which they would give you receipts in various denominations. Then anyone who had notes totaling 1000 centigrams for a 10-gram bar, or whatever a reasonable size bar would be, could tender them at a local office to get the gold back.rocketdog wrote: Perhaps a gold alloy? (Yeah, yeah, I know -- big risk of counterfeiting)
Hmm, that sounds like an interesting business possibility. I wonder why no one has thought of it before?
Re: Forget Gold, Use Silver as Currency
Great idea! And we could loan out most of the gold, keeping only a fraction of it in reserve! And we could charge interest on the gold loans we made! And we could get the government to bail us out if we ever went insolvent! And we could call these new businesses "Banks"! And then we could... oh, wait.Libertarian666 wrote:I'd be happy to accept private warehouse receipts from a trusted company, denominated in centigrams or the like, for small transactions. The idea is that you would make deposits, for which they would give you receipts in various denominations. Then anyone who had notes totaling 1000 centigrams for a 10-gram bar, or whatever a reasonable size bar would be, could tender them at a local office to get the gold back.rocketdog wrote: Perhaps a gold alloy? (Yeah, yeah, I know -- big risk of counterfeiting)
Hmm, that sounds like an interesting business possibility. I wonder why no one has thought of it before?
The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.
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Re: Forget Gold, Use Silver as Currency
Yes, of course. But I think after a complete wipe-out of fiat currencies and "too big to bail" banks, people would be pretty insistent on treating that as what it is: embezzlement.rocketdog wrote:Great idea! And we could loan out most of the gold, keeping only a fraction of it in reserve! And we could charge interest on the gold loans we made! And we could get the government to bail us out if we ever went insolvent! And we could call these new businesses "Banks"! And then we could... oh, wait.Libertarian666 wrote:I'd be happy to accept private warehouse receipts from a trusted company, denominated in centigrams or the like, for small transactions. The idea is that you would make deposits, for which they would give you receipts in various denominations. Then anyone who had notes totaling 1000 centigrams for a 10-gram bar, or whatever a reasonable size bar would be, could tender them at a local office to get the gold back.rocketdog wrote: Perhaps a gold alloy? (Yeah, yeah, I know -- big risk of counterfeiting)
Hmm, that sounds like an interesting business possibility. I wonder why no one has thought of it before?
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Re: Forget Gold, Use Silver as Currency
Many have, but the SS and DOJ always shut them down for infringing on legal tender laws.Libertarian666 wrote: Hmm, that sounds like an interesting business possibility. I wonder why no one has thought of it before?
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Re: Forget Gold, Use Silver as Currency
Ad Orientem wrote: Not a big fan of hard currencies.
have you heard anything about the monetary history of the Byzantine Empire? I recall listening to a podcast (McAlvany?) where they discussed the Eastern Empire surviving 500 years after the fall of Rome. The Byzantines maintained the purity of the metal currency.
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Re: Forget Gold, Use Silver as Currency
The Byzantine Empire (really the late Roman Empire) is a fascinating topic. I highly recommend Lord Norwich three volume history.murphy_p_t wrote:Ad Orientem wrote: Not a big fan of hard currencies.
have you heard anything about the monetary history of the Byzantine Empire? I recall listening to a podcast (McAlvany?) where they discussed the Eastern Empire surviving 500 years after the fall of Rome. The Byzantines maintained the purity of the metal currency.
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