May 1st is the day to buy silver!

Why? It sells very well at this price in India and SE Asia today as 22k jewelry. Its pretty, and culturally appealing.

 

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Why are China and Russia stockpiling gold? Why won't the USA sell any of its huge gold reserves? Why are central banks net buyers of gold?

They sure do like gold a lot for it being a commodity, and a pretty much useless one at that.

Silver is much more valuable as a commodity (especially in wartime) yet the U.S. holds ZERO ounces, but holds 260 million ounces of gold. A commodity that has little to no use for a government.

You can't dispute the facts so you merely sidetrack the discussion.

 

Man, that was totally uncalled for.

You know what? I will join Mike. The tone of this board is simply untenable.

You guys have fun praising each other how brilliant you are and slandering anyone who may think just slightly differently.

 

Well, not that I like that two people have decided to take a vacation from the bullion section, or at least this thread, but I do agree that this is starting to venture into silly Internet argument territory.

 

Why yes they did print paper money before the Fed.

Out of curiousity, what was the first kind of money made by the federal government, PM coin or paper dollars?

 

The first currency was a Denarium ( copper), the groat ( silver) and the shilling also silver. Maryland 1659.

 

My bad, there were the little silver coins that said New England on them, 1652 also silver.

 

Thanks for the info, but I was more interested in the first money of the United States government, not colonials. I do appreciate the info though.

 

That would be the Brasher 1787, ( Gold ) and the Fugio copper. The Fugio or cent said "We are One" , "Mind your business"

 

In 1793, the first piece of circulated coinage came on the scene with the Liberty Cap Half Cent, 35,344 minted or made. Copper, with silver coming into play around 1851 with the three cent piece.

 

Looks like copper was the main planchet for coinage in early Federal cents. Silver was more of a commodity used in trinkets and jewelry. These were then traded for the copper coins.

 

Remember that Spanish milled dollars were legal currency until the mid 1800's as well. People used them all the time. We even found a one real piece in the ground here in Maine that someone lost a long time ago.

 

I mis-spoke. Metals were money long before they were traded as commodities in the current marketplace, but you are right that they were commodities first in general, but they were still elements before that. The point is not what came first anyway, rather that there are many roles.

 

Silver was money in China for thousands of years, long before the Spanish inquisition. The word "silver" is the same word used for "money" in many languages. It's not an idea. It's history.

 

Gold swaps are done under the table specifically for the purpose of avoiding disclosure of such information.

 

All metals can function as money. Copper are nickel are still monetary metals, but they're not precious enough to be worthwhile for wealth preservation. Central banks aren't going to bother with storage fees for copper and nickel. They like gold because it's the most expensive and the most widely accepted. Silver is the most practical for day to day sized transactions. Copper is more appropriate for primitive or less wealthy civilizations.

 

Yes, paper dollars 100% backed by gold or silver on deposit at the US Treasury, which were exchangeable for metal at that value. Which were representations of gold and silver coinage that was specifically outlined in the Coinage Act of 1792 with how many grains of gold or silver constitutes a dollar, thus the original definition of what a dollar is. Paper today is not the same as the paper you are referring to, because that paper really was as good as gold.

It was the Fed who was responsible for printing money without adding to the gold supply, and thus creating the disconnect that forced us to eventually close the gold window.

But we can't blame the Fed for this directly. They were doing what they had to do in order to keep the nation from defaulting because of spending beyond our means.

Whether those who run the Fed used their power over our money to coerce politicians into doing their bidding, or the bidding of whoever they report to in Basel, we can only speculate.

 

You aren't alone in that department, brother. Anymore I just read these for a daily laugh or two. Nothing like a bunch of foil hat wearing alarmists scrambling to secure "wealth" by hedging against the same currency they are using to buy and sell with. Might as well ask, 'if you were a hotdog would you eat yourself?' question, as the answers would be as interesting.
Guy

 

At least we don't end our sentences with prepositions...

 

No matter how many I offer, the PM dealers just won't accept my cotton bales.