This guy doesn't like precious metals.

So you havent eaten since 1964? Bet you have wicked abs.

 

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For the record I am not anti PM and pro coin. I like both. I have about 30 ounces in bullion form including D Carrs beautiful fancy bars. I just like them as a luxury in the same way Joe Montana rookie cards are a luxury I enjoy. I dont believe they have magic armegeddon saving powers.

 

Has he been paying attention to our gummint lately?

 

This paper from Fekete Research explains things perfectly in my view, from Sandeep Jaitly on Austrian school of economics. It just makes a lot of sense to me. I first saw him discuss this on the Keiser Report, and have provided a couple short clips about this topic. Although there are more interviews with him that are just as worth watching.

http://www.feketeresearch.com/upload/The-Gold-Price.pdf

http://www.youtube.com/watch?v=ihVSoVlkTGA
http://www.youtube.com/watch?v=JeDqa7zFRAM

 

As the paper in my previous post postulates to some degree, I agree with it that the concept of measuring valuation originated with gold (and silver too) as the baseline because it was always in surplus compared to what came out of the ground which stemmed from it's desirability as jewelry. The labor cost ensures it will always be representative of the same amount of work, and the fungibility+divisibility+durability+portability means not only will the metal last forever but so will the value regardless of what happens to it.

Not necessarily. Greece is using Tem coupons in addition to the Euro. There are a number of barter currencies there, and over 4,000 gold dealers in Attica. It just depends on what you need to be able to use the currency for, taxes or groceries?

 

I reject the assertion:

"For each ounce of gold we have, we are
willing to accept the next ounce of gold on exactly the same terms"

I simply do not believe that is true of gold. Substitute oil in our modern economy and that would be closest in my view.

The entire premise of this paper is predicated on this statement, so therefor the paper in total I do not agree with. I agree with many of the actions as theorized, I just do not believe they pertain to gold.

 

I also hesitated there, but I don't think it undermines the premise which is that the baseline for valuation was derived out of precious metals. It could have been worded more accurately as "For each ounce of gold we have, we are willing to accept the same approximate amount of buying power in collateral". Oil gets used up and wouldn't have a growing surplus over time as gold does which was part of the reasoning behind the premise. I don't think you are focusing on the right aspects. It's fine if you don't agree with Austiran economics, but I ascribe to that as opposed to Keynesianism.

 

I believe its an interesting premise, and i do believe thinking of pricing outside of your own currency system is a valuable lesson to learn, though, so i appreciate the article nonetheless.

 

Same here. But I don't think I'll ever be interested in copper or nickel coins unless they are really exceptional. Lately, I have been buying large silver pieces like 8 reales and yen from the Meiji period, and I just bought a Napoleon 5 francs and Chinese silver dollar. These are big, thick coins with a decent melt value. But whenever I go overboard with numismatic, I remind myself to revert to buying bars or rounds to balance things out. I think semi-numismatic coins may do decent in the next leg of the silver bull run. They may not perform as well as bullion, but I want to snatch a good amount before they become unattainable by most of the middle class.

 

Apparently not, trillions printed to fund yearly deficits, everything is OK though!!! Dollar is king and will never fall, of course that is what they all say during their reign, but hey we are DIFFERENT!!

 

I still think that silver coins are the best hedge, even with silver tanking this morning.

 

Silver is cheaper then it was in 1980 (yes I do know Hunt Bros), not even considering inflation.

The government has 16 trillion dollars in debt with yearly deficits at around 1.1 trillion and probably going to increase. Don't see how that isn't going to cause at least moderate inflation, if not runaway hyperinflation at some point.

Never underestimate the governments ability to prop up a decaying system though, they truly are experts in the field.

Hard assets is where its at in my opinion. Gold/Silver/Land/Businesses that are more immune to currency collapse and recession.

 

I agree with you Tinpot. We just have to hang on, because it is not going to be a smooth ride, nor will it be a smooth landing when it all goes down. Here's an article from Zerohedge today that is very interesting about how much money we are borrowing in relation to other currency crises: http://www.zerohedge.com/news/2013-02-11/sovereign-defaults-past-and-present-one-chart

 

Here's the chart from the article above that's the most interesting. We are way beyond where Argentina was when they defaulted: