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<p>[QUOTE=&quot;ajbuckle, post: 232477, member: 8484&quot;]<b>The denomination matters a lot</b></p><p><br /></p><p>The problem is that with floating commodity prices, you cannot have a single monetary instrument that is both bullion and currency.&nbsp; You can set the denomination above, below, or the same as the price of 1oz of silver.</p><p><br /></p><p>The Same:</p><p>&nbsp;If the ASE was denominated at the current price of silver (say $13), then it could be both a bullion coin and a circulation coin only until the price of silver changed.&nbsp; If silver went up, then they would be hoarded/melted.&nbsp; If however, the price of silver went down, then the $13 denomination would become a price floor for the coin.&nbsp; So the government would be guarantying your investment in silver to never go down (it would be nice but it isn&#039;t going to happen). </p><p><br /></p><p>Priced lower than silver:</p><p>This is the current system ($1/oz). Silver prices can float, but as long as they do not cross below $1, then the coin never circulates.&nbsp; Thanks to monetary inflation, we are not likely to ever see $1/oz silver in the future.&nbsp; Therefore, it is pure bullion, and not useful as currency.</p><p><br /></p><p>Priced higher:</p><p>If the ASE was denominated at a price above the price of silver (say $50), it would probably be able to survive in the longer term as a currency.&nbsp; However, you would not be able to purchase them for the current $13/oz price of silver, they would cost you $50.&nbsp; So it would be a pure circulation coin and not a suitable bullion coin purchase.</p><p><br /></p><p>Like many of you, I would love to see a $10 or $20 or $50 circulation coin, but it will have to be a different coin from the bullion coin.[/QUOTE]</p><p><br /></p>

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