Silver, Dollars, Yen, and the Hot tub time machine

Way back in 1897 when money was still made of Silver........

One yen silver coin was 26.9 grams composed of 90% silver and 10% copper

One dollar (morgan at the time) was 26.7 grams composed of 90% silver 10% copper


now present day one oz of silver in USD is 32.61

one ounce of silver in Japanese yen 2570

so one must really ask if the Japan model of infinte low rates and QE works?

Can you imagine going to the local ATM taking out 100,000 USD and not being able to buy dinner for 4 at a restaurant?

And if you guys know options and have an opinion Silver vol is 22 and gold 12
you can make your own judgement from there

Mining issues in South Africa have been going on all year and will for the forseeable future morons may tell you why Platinum is less than Gold and blah blah blah

is PLatinum gets 180 under gold again there is value.............and How about one for the good guys an algo gets stuck short Palladium today and drives the price up 5%
congrats to the PL and PA owners after a dreadful month finally got something decent back and the bubblevisions are on your side now as they are admitting there will be shortages in the future

 

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I haven't been to Japan in a few years, but the 1 yen coin is considered to be practically worthless. (if they still have them) It's made of aluminum. Even the 100 yen coin is a novelity. I've got one stuck in the mouth of a money frog good luck piece. I've got a few around here. Their biggest coin is the 500 yen coin. Coins denominated for less than 1 yen disappeared a long time ago.

I could mentally do the conversion of what I was paying for stuff but it's not really is something that really sinks in. You just have to get used to paying 1000s of yen for something like dinner.

 

Short bubblevisions are on my side?

 

I snipped most of your quote since it was essentially a political rant.

Anyway, the problem with the argument above is context. In 1892, one Japan yen was either silver (26.96g 90%) or gold (1.67g 90%). At this same time, 50 sen (1/2 yen) was silver (13.48g 80%). Now, why would there be this disparity in silver composition between 50 sen and one yen? Essentially, a yen had more actual silver in it than two 50 sen (one yen equivalent). The difference was 12.5%.

In 1906, this was somewhat exacerbated by the 50 sen piece being reduced further to 10.1g 80%. At that time, the full yen coin was still a 26.96 90% piece. This brought the difference over 50%.

In 1922, the 50 sen piece was reduced to 4.95g 72%. This hung around until 1938... and... WORLD WAR TWO!

As a result of losing the war, Japan was bankrupt as a nation. The yen, formerly 26.96g 90% silver was now a 3.2g brass coin. The 50 sen piece transitioned twice in the four years after the war, first to a 4.5g brass piece, then to a 2.8g brass piece.

Then came the Korean War. Due to the Korean War, Japanese goods saw a spike in demand, which helped reboot their economy. The money supply needed to be updated and increased, and Japan witnessed its first aluminum yen in 1955. In 1955, the United States was still using the 26.73g 90% standard dollar.

1957, Japan issues a 100 yen (4.8g 60% Ag) coin.

Equivalent values based in silver gives us:

1957 100 yen = 2.88g Ag
1957 50 cents = 11.25g Ag

In 1957 dollars, $1US (silver based in half-dollar equivalents) would have purchased 781.25 yen (silver based in 100 yen equivalents).

In 1965, the United States changed the silver content of its 50c pieces (11.5g 40%) to contain 4.6g Ag. At this exchange rate, $1US (silver based in half-dollar equivalents) would purchase 159.72 yen (silver based in 100 yen equivalents).

So, in a decade, the US saw 79.556% of its purchasing power (in silver equivalents) vanish. It's even less time if you want to be technical about when the 40% clad half was actually introduced.

The point is that quantitative easing an the negative interest rate policies of Japan aren't the only reason for Japanese inflation from 1892(1897)-2012. It's not even the main reason. World War 2 was the primary culprit.

 

They still make them, but are near constantly talking about getting rid of it.

 

Good evening,
Im Stephen From Chicago. I have not checked on this site for a while as I have been busy with work...... Yes I am a wall st type, but being half chines and half dutch, haave been collecting and given tons of coins mostly gold and silver over my life................NorthKorea, that is pretty impressive, you obviously know your coins, I am far from a coin specialist, and actually joined this site a year back when I had a kid. Anyway your math on the coinage is way better than mine, but for reasons of history past, the big silver yen vanished just as the morgan and franklin and 50 sen, I generally write pieces more for the tradding community, but since Japan recently announced 130 Trillion stimulus plan in yen of course, and then came out witha horrid negative GDP...... nd now is promising to ease further at the BOJ meeting on Nov 20th, I think you have helped prove my point, and I may actually borrow these facts, my point of the whole story was not political......

we run a fund that trades primarily in commodities especially PM's, but since Im the boss now we do coins, real estate, anything that can be bought and sold.............call me a wall streeter goin main street too........

Anyway, I think it is safe to say that this being a coin site, all of us have some money vested in coins, probably most of which are silver?

So the BOJ announces massive stimulus the yen strengthens, if you can explain that one, and time when the yen crash is coming, email me and Id hire you on the spot no BS............

Kind of rambling, but thanks for the info, I wrote this as a joke to a bunch of traders, and they were like, no way the yen was never worth a dollar, I said well it kind of was

Anyway we do a lot of cross currency metals trades, thats my day job, coins has been a hobby for along time................less now as a baby takes a lot of time, plus the prices for crap are outrageous

I use to get year of coins and pandas as a kid for Lunar (Chinese) new year, I had to have my wife buy a 10 oz dragon this year for 280.00 because we couldnt find any one ounces for less than 100 bucks, but I guess thats the trader in me..............

Ill be back again soon

best qsilver

 

If you're looking for opportunities, check HCM, VN. The Asian multi-nats have been rotating out of SG for a year or two now, which has caused residential prices to spike, but commercial hasn't really caught up to demand.