Here is my idea, let me know what you think. A large coin company decides to support the price of MS63 NGC/PCGS certifed Morgan dollars at a realistic price, could be $45 or $50. Then you make these a universally traded item that certain banks will also agree to take at those levels in their deposits from customers and businesses. So it is sort of like Bluesheet, where coins trade at certain levels, sight-unseen. Is there any way to make this work? You go to the gas station and offer an MS63 certified Morgan dollar against the tank of gas you get. You go to the grocery store or Walmart and they accept the Morgan dollars, certified in trade as long as your total purchase is over the value of the Morgan dollar, that way you don't get into complicated cash back situations. The incentive for the business is they get a tangible asset with a guaranteed value. I realize initially this would take large amounts of money to make it fly until they started listing MS63 Morgans in the morning paper with the current unit price. This would be a boost to the coin businesses, it would encourage excitement and interest in historical coinage, and there might also be a side business as the demand increased and the supply grew less in various aspects.
I think the speculation would kill the coin business. Nice idea of bartering but I don't see it happening.
I think you believe the TPGers are MUCH larger than they are. I own some shares of CLCT, (PCGS), and trust me they have about 1/1 millionth the capital to even think about something like this.
An Adjudicated Violation Of Existing Federal Criminal Code. If you review the following statute found in the Federal Criminal Code: Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals, intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined under this title [1] or imprisoned not more than five years, or both.applied to establish a precedent in the adjudication of the "Liberty Dollars". I believe that the Statute content clearly defines what may be exchanged as consideration/payment in U.S. commerce. You'll find that an exchange as suggested would violate the stated condition "except as authorized by law", inasmuch as the dollar coin was authorized to be exchanged for ONE DOLLAR as denoted on the coin. You'll also find the Internal Revenue (IRS) would have great interest in collecting taxes/penalties on these coins being exchanged at the proposed 5000% of the original basis value. These proposed exchanges would constitute significant "Capital Gains" unless a different basis can be proven, generally taxable at a 28% rate, with appreciable penalties for untimely filing/reporting of the gains. JMHO :thumb:
