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overtheedge
Member since May 2012
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Opening the mint to gold and silver - then and now

- Hugo Salinas Price - Plata.com

It would be quickest to just use weight in grams for silver coinage. Paper notes in the form of silver certificates would be denominated the same way; grams of silver. Current fiat would be cycled back to the Treasury for destruction. Not everyone will want silver coinage or bullion. Imagine going shopping with a kilogram or more of silver. Ergo, the need for silver certificates with the attendant metal safely tucked away in the Treasury's vault.

The only way bimetallism will work is if gold is allowed to float. Let the market deal with the conversion ratio. Besides, Gresham's Law will almost certainly force gold into deep savings. It might re-emerge as collateral or for very large purchases but quickly go deep again. No matter what, gold is scarce enough that it will be revalued far higher. If my math skills aren't totally screwed up, there is only enough gold above ground that if evenly distributed among the world population, each person would only get between 1/2 and 3/4 of an ounce or about 15-25 grams. But it isn't evenly distributed any more than wealth is. Though I must admit the sight of an Indian woman, wearing her gold jewelry while working barefoot in the field, being vastly more wealthy than the American housewife sitting in her dark and soon-to-be-repossessed house humorously ironic.

If we use the weight as the denominator for gold and silver and perhaps 999 fine, the market would accept private mintage as well. The US Constitution would permit this under strict interpretation. See Liberty Dollar and the most liberal interpretation.

Article I section #8 paragraph 6, "To provide for the Punishment of counterfeiting the Securities and current Coin of the United States." Please note: "current Coin of the United States."

Good article even if somewhat dated.

Commented 4052 days ago

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Beginning of the headline :Some people think that one of the fundamental institutions of the 19th century should be restored; I will single out Great Britain as the great leader embracing this institution. This institution was the free minting of gold practiced by Great Britain in its heyday of growth, world economic and financial power. Under this system, any owner of gold bullion could take his bullion to the Royal Mint and have it minted into coins containing the same amount of gold as provided to the Mint by the owner of the bullion delivered. This was done at no cost to the owner of bullion as a government service to the economy... Read More

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