Paper (money) Is Poverty

6 comments

Posted on 8th February 2013 by ncognito1959 in Economy

Great short video on what REAL money is. The most interesting part to me is the concept that you are trading equal value for equal value when you use gold or silver to purchase something.

6 Comments

  1. prtrb'd says:

    So, if silver is priced in paper now, at ‘equal value’ to some other asset priced in paper now, then why is it that when- not if but when- silver assumes it’s fair value that it will take much less of it to buy said asset?

    When a market has been manipulated for so freakin long it’s like holding a beach ball underwater, at some point it will get away and surface again. Sure, a beach ball is a lousy metaphor because it would implode easily if taken too far under, but the skin on gold/silver is thickened over many hundreds of years and will not implode easily.

    Funny they had to go to India to find 3 people who understood ‘money’ and wealth enough to explain it. Try that in the US!

    Like or Dislike: Thumb up 3 Thumb down 0

    8th February 2013 at 4:36 pm

  2. Ron says:

    I have a few silver coins and wonder if its real. I wonder how much gold is fake also.
    My father bought a few gold coins,gold went up several hundred dollars.So he tried to cash in his coins and even though gold had gone up he couldnt get what he paid for it and got screwed over.
    But yes except as toilet paper ive often wondered about paper,IOU stuff.
    Funny thinking about a whole society trying to turn in theyre useless paper and getting coins?
    It almost dosent seem possible.
    Oh and my dad bought some silver coins that were on tv for 39.00 and my sister took them to a collector friend who says theyre worth ten bucks tops.I guess they were plated silver.
    I would be curious if everyone out there tried to cash in their gold and how it would work for them.I think silver makes more sense when trying to buy smaller things.

    Like or Dislike: Thumb up 0 Thumb down 0

    8th February 2013 at 4:47 pm

  3. A. R. Wasem says:

    Ron – Caveat Emptor – or – don’t buy from some guy on tv.

    Like or Dislike: Thumb up 4 Thumb down 0

    8th February 2013 at 5:13 pm

  4. Makati1 says:

    Silver coins have the sound of silver. Take two silver coins of equal size and drop them a few inches onto a hard surface. The silver coin will ring. “Ping! The others will sound like lead. Plunk! I’m sure there are similar easy checks for gold coins, but I never had one to see.

    Like or Dislike: Thumb up 2 Thumb down 0

    8th February 2013 at 8:42 pm

  5. IndenturedServant says:

    @Ron, since coming here I wondered why you were so down on PM’s. I’m starting to suspect you have not been dealing with reputable people or products on the buy side.

    I have no idea where you live or how many local coin shops you might have in your area but it REALLY pays to shop around both when you are buying and selling. Better yet, search out two or three reputable shops and establish a long term relationship with them. Most places publish their buy and sell prices in the window or at their counters.

    Educate yourself about what to buy. I try to stick with Buffalos, Eagles or Maples for gold although I do have some marked, high karat jewelry and credit suisse bars. For silver I really like *junk* or pre 1965, 90% dimes, quarters, halves, and dollars (in good condition) as they typically have the lowest premium. I also buy generic, marked rounds from reputable makers, bars up to 10oz., Eagles, Maples, kilo Kookaburras and other sovereign silver.

    You will almost always pay a premium to buy and sell but that is how the dealer gets paid. Establishing a reputation with good local dealers will pay off in occasional reduced premiums and other niceties.

    Do not get talked into buying graded coins as investments if your intention is to invest in bullion. Do not get talked into buying “uncirculated” or “proof” coins when your intent is to buy bullion. Try to keep up with news on fakes and counterfeit items. Gold coins of almost any size are frequently faked. Silver is not faked as often.

    There is a place in Lansing, MI called Liberty Coin Service. The owner, Patrick Heller is about as reputable as you can get IMO and a real gentleman. He puts out a newsletter each month that can be found on his website. On the last page he publishes current premiums for various PM products.
    PM investing is just like any other investing and educating yourself is mandatory.
    I_S

    Like or Dislike: Thumb up 1 Thumb down 0

    8th February 2013 at 8:59 pm

  6. Muck About says:

    @I_S: I’ve been using Liberty Coin Service since Bill and Kathy Bradford started it back when the world was young. Bill has since passed but Pat Heller is as honest as can be and, IMHO Liberty Coin is the place to go to both buy and sell PM coins.. Their web site also lists premiums on the buy side and mark up on the sell, up to date daily..

    MA

    Like or Dislike: Thumb up 1 Thumb down 0

    8th February 2013 at 1:46 pm

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