Thanks for the details. I use "blobs" instead of "common, non-denominated bullion bars or rounds" so whether poured, minted, or squished and cut under high pressure it's all the same to me. If a business like a gardening supplies store, plumbing contractor, or diner takes all forms of physical silver as "payment" for ALL goods and/or services it sells (not just gov't issued denominated silver coins) from anyone without the customer having to be a member of the business, then I would say that this business does treat silver as money and that silver functions as money in this business. So, please tell me, if you know, how does the gardening supplies store you mentioned determine the value of the physical silver pieces it is given? Is it by the current spot price in AUD$ based on purity and weight? What if, hypothetically, in the next year, that for a few hours of 1 day the spot price of silver hits a once in a lifetime high of $200AUD (assuming we don't know the real reason at that time....finding out later that it was either a glitch or the result of some very major manipulation by strong hands....the reason is not important right now) and lots of people come in with physical silver blobs to buy out most of the inventory of the store - then the price consolidates back to it's normal $21 or whatever it is for the next several years....how does this business survive? How do they determine purity of the silver items being brought in to be exchanged for goods? How exactly does this business do it? What if a bunch of people over a week or two time period pays with popular name brand blobs, gets their supplies, leaves happy and weeks later the store owner finds out that the name brand blobs were in actuality, well made Chinese knock-offs having no silver content at all? Treating physical silver as money may have worked awesomely back in the Bronze Age, but today....really....treating pieces or blobs of metal like money? Hmmmm. It's more questionable and risky at best than using stable fiat currencies, from what I can see. .
LOL maybe a 1 oz 999 troll bar or round is in order or on order and I want my percentage right been here for years and still trolling :lol:
Yes, of course the seller of the petro is not valuing the silver gov't issued coins to the denominated (nominal) value....but valuing it to what is the all important question. If to a recent spot price of $17.47, then he is selling those gallons of petro for about $1.27/gallon when someone pays for a gallon with 2 pre-'64 dimes (17.47 .0321507466 2.5 .90) = $1.26). Is this seller even getting his cost for it? How long will this seller stay in business selling at that price? There is in fact a very good reason why no country pegs their currency to silver any longer. The fact that silver really isn't money (cannot function that way today) any longer (in any practical way for the vast majority of humans on the planet) is not that difficult for me to see why. I don't think those reasons will change for a very, very, very, very, very long time. .
"Troll bar"...I love that....you ought to coin (pun intended) that name and secure the domain if no one has already! .
Who knows how long that picture has been floating around the internet? I saw it a few years ago so it might have been worthwhile back then. He might have taken the sign down or changed it to 30 cents/gallon or something similar.
So if your silver is recognised by common consent and has its value fixed by a government then it is 'Money'. Money acts in several different ways, and silver also acts in several similar ways, but that does not make them the same, just similar in nature, but not in legal standing. You might not like the legal definition and you might like to substitue your own definition so that you can prove your own point, but you are wrong, not only are you wrong but when people point out that you are wrong, you call them stupid. Not only do you call them stupid but you ask questions like "if silver is not money why does it have a value?" My banana has a value, does that make it money?
Not really GP. Renovator and I were talking about that last night. We new it was trolling, but I considered it mindless fun.
His username gave it away ... sorrytosay ... oh dear some people are about as sharp as a bowling ball :
I cannot answer your questions regarding hedging, beyond stating that these are business people who know what they are doing. However, I think it is reasonable to assume that the business concerned has a bigger trust in AG/AU than fiat.
The first response was outing him as a troll! I think it was obvious to most people but there is nothing else to do around here other than argue amongst ourselves, and that we can do quite nicely, we just need the catalyst.
