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

- Hugo Salinas Price - Plata.com

How would we/they compensate for silver, especially .9999, being bought up by industry thereby driving up the price and taking physical out of storage? Would current production be able to keep up with demand, especially if we look at demand in the long run, not just the next 12 months. While I'm all for having PM's in reserve I'm somewhat leery about the wild swings that may happen and how well pricing and consumer mindset could adjust. What process other than manipulation could ensure reasonable stability? Fiat doesn't have any value, no industry needs to use paper cash for any process in which the paper is converted into something other than fiat bills. Ages ago when PM's were valued and used as a means to conduct barter the effect of valuation swings was minimal (not going to get into the abuse that some kings and governments used) but today with industrial uses increasing for both metals it appears to me that we consumers would be competing with big business to get our hands on the metals. With so many new uses being found for silver it's virtually guaranteed that demand will be greater than what can be produced in a timely manner. We may see some recycling of silver if the price rises high enough but with some of the new uses, things like silver micro fibres in clothes to kill the bacteria that cause body odor, medical salves, or used in water filtration, the return still wouldn't be worth the expense involved in reclamation and in cases such as salves, being totally consumed and taken out of the pool.

Sorry, I know that has been covered many times, fiat vs. physical being used for currency, and at great length but so far none of the proposals has adequately addressed the above.

Commented 3883 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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