Sister Currency

[Naphthalene Man]

I just wish they would bring back bullion sovereigns and half sovereigns at reasonable prices. It worked in the past.

 

[Jislizard]

For someone that ridicules the status quo so regularly, I find that post somewhat hypocritical AusPM?

I don't know, other than me agreeing to it, it doesn't seem to be anything that he hasn't expressed before?

He isn't supporting the status quo, just pointing out that the government is happy with the current state of affairs and it would not be in their interest to give the public an option.

 

[Auspm]

For someone that ridicules the status quo so regularly, I find that post somewhat hypocritical AusPM?

I don't know, other than me agreeing to it, it doesn't seem to be anything that he hasn't expressed before?

He isn't supporting the status quo, just pointing out that the government is happy with the current state of affairs and it would not be in their interest to give the public an option.

Yep. ^^

 

[Roswell Crash Survivor]

There is a real problem using precious metals in circulating currencies:

"There are a hundred whorehouses in this city where a clipped copper will buy me all the censored I want." -Bronn, A Clash of Kings, p. 199

A fellow Game of Kings reader/watcher?

 

[Byron]

Although bad for our dealers here, what if banks also bought and sold gold at the prevailing market value - to keep it simple buy/sell only PM coins.

Some european banks do that i believe.

 

[bordsilver]

How about an Aussie Krugerrand?

Just do this. Australian legal tender for whatever the metal content happens to be worth in AUD today.

The main problems which keep coming up are...

Small denominations for everyday purchases. Either you debase the metal or you have tiny little coins no one can see.

Fakes, these exist anyway, most notably the 1 coin. In Australia there were a few $2 fakes but not enough to cause a problem. There are plenty of fakes of predecimal coins which were circulating at the time. Suddenly it becomes worthwhile to fake Australian coins.

Clipping, shaving, shaking them up in a bag, numerous ways of reducing the metal content. Do we want to go back to weighing our coinage at each purchase?

Comparing the fixed face value to an moving intrinsic value, eventually it will be worth melting down the coinage.

Manufacturing costs, people want to pay $1 for a $1 coin, no seigniorage.

Gresham's Law, if you have two circulating currencies the one with intrinsic value (good money) will be hoarded and the debased or fiat money (Bad money) will be offloaded.

Overseas people buying Australian currency and it leaving the country. The Government loses its manufacturing costs.

Canada brought out its $20 silver coin (about $7 worth of silver in it from memory) for $20. You swap $20 fiat for $7 specie and it is still worth $20, what could go wrong? You can't spend it, it is a novelty and the mints of the world churn out so many "coins" that no one will take them seriously.

None of the problems are insurmountable but it does seem to be in the "too hard basket"

Plus the voters don't seem to be clamouring for it so why bother?

Easy peasy. Essentially just denominate everything in Intrinsic value but using redeemable banknotes for day to day transactions. Need free banking at the same time.

 

[mmm....shiney!]

There is a real problem using precious metals in circulating currencies:

"There are a hundred whorehouses in this city where a clipped copper will buy me all the censored I want." -Bronn, A Clash of Kings, p. 199

A fellow Game of Kings reader/watcher?

Absorbed totally now, thanks to rbaggio and fishguts and others.

 

[Jislizard]

Although bad for our dealers here, what if banks also bought and sold gold at the prevailing market value - to keep it simple buy/sell only PM coins.

Some european banks do that i believe.

Greek Banks buy gold sovereigns, or at least they used to, not sure I would be selling to them now anyway