At 09:36 AM 11/20/2002 -0500, C. Cormier - Ormetal Inc. wrote:
On 20 Nov 2002, at 9:32, Patrick Chkoreff wrote:> Please tell us where you can buy one ounce minted silver coins for > anywhere near five bucks. Patrick, The best price you can get these days for a one ounce silver coin (Say a Silver Maple Leaf) is $6.81-$7.00 STill a lot cheaper than $10.
Thanks for the information Claude!
So now we can see that von NotHaus' "chutzpah" factor is more like 43%, not the 100% that Jim Ray implied. :-)
They had to walk a difficult line when they designed the Liberty coin. They decided to denominate it in dollars so it would be familiar. But then the question became, how many dollars? Any number you choose is somewhat arbitrary, since it will almost never equal the spot price of silver or the asking price of most silver bullion coins.
So what's the correct number? Five? Too low. Ten? Seems about right. Twenty? Too high. Certainly they didn't want to use something like 7.50 or 8.
Some would argue that this inherent difficulty is evidence that denominating a precious metal coin in dollars is a bad idea to being with. Personally I wouldn't go that far.
But once you decide to denominate a coin in dollars, you have to pick a reasonable and workable number. I think Ten is pretty good.
The "problem" with most bullion coins is they either have no denomination in national units or an unreasonably low denomination -- for example, a one ounce gold coin denominated as Fifty Dollars. It's a sick joke.
If you're going to have a precious metal coin denominated in familiar units, and you want that coin to circulate and spend as those units, I think you have to err a bit on the high side.
So, the $3.00 spread between the Silver Maple Leaf and the Liberty coin is the price you pay for having the words "Ten Dollars" stamped on the coin. :-)
-- Patrick
http://fexl.com
---
You are currently subscribed to e-gold-list as: archive@jab.org
To unsubscribe send a blank email to [EMAIL PROTECTED]
Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
