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What if silver was put back into circulation?
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<p>[QUOTE="Blaubart, post: 1433655, member: 37498"]You probably know what I mean, but it's hard to tell if a person is being sarcastic on the Interwebs. By "real money", I mean bullion based coins or at least representative based paper currency.</p><p><br /></p><p>While it sounds nice in principle, I just don't think it's possible in the current world economic and political system where everything fluctuates in relation to everything else, which creates an opportunity for profit. e.g. The price of silver fluctuates relative to the price of gold, and both fluctuate relative to the price of Dollars, Euros, Pesos, etc. Whatever world currency is takes a beating in the exchange rates to the point where the PMs in their coins can be had for less than spot, that's the one that people will gobble up for its silver content. Even moreso than if it was just the residents of that particular country hording their own currency.</p><p><br /></p><p>Also, world population and GDP have been growing while the amount of PMs in the ground have not.</p><p><br /></p><p>Some people here have recommended issuing coins that have some precious metal content in them, but are still cheaper to produce than their face value. This is still a fiat system and it's essentially what our current coins are. While not exactly made from precious metals, the metal in our coins does have value. If we saw runaway inflation, the value of the copper and nickel in the coins would become worth more than their face value, as has happened with pre 1982 pennies.[/QUOTE]</p><p><br /></p>
[QUOTE="Blaubart, post: 1433655, member: 37498"]You probably know what I mean, but it's hard to tell if a person is being sarcastic on the Interwebs. By "real money", I mean bullion based coins or at least representative based paper currency. While it sounds nice in principle, I just don't think it's possible in the current world economic and political system where everything fluctuates in relation to everything else, which creates an opportunity for profit. e.g. The price of silver fluctuates relative to the price of gold, and both fluctuate relative to the price of Dollars, Euros, Pesos, etc. Whatever world currency is takes a beating in the exchange rates to the point where the PMs in their coins can be had for less than spot, that's the one that people will gobble up for its silver content. Even moreso than if it was just the residents of that particular country hording their own currency. Also, world population and GDP have been growing while the amount of PMs in the ground have not. Some people here have recommended issuing coins that have some precious metal content in them, but are still cheaper to produce than their face value. This is still a fiat system and it's essentially what our current coins are. While not exactly made from precious metals, the metal in our coins does have value. If we saw runaway inflation, the value of the copper and nickel in the coins would become worth more than their face value, as has happened with pre 1982 pennies.[/QUOTE]
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What if silver was put back into circulation?
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