Fibonacci Financial

Archive for November, 2011

99.9%  SILVER COINS
Cannot Be Used in Everyday Exchange
BECAUSE they are TOO SOFT !
They are MEDALLIONS aka Collectors Items.

REAL “HARD” MONEY

For Hundreds of Years since around the late 1400s, the standard in Silver Coinage was set by the THALER (which the Brits & British Colonists called “Dollars”).  An excellent discussion of the renaissance of silver coin minting in Europe is Professor Antal Fekete’s article:

ARCHITECTURE FOR A NEW  WORLD FINANCIAL SYSTEM

To make Thalers hard enough for everyday exchange and use at regional Medieval Trade Fairs required that the silver be alloyed with enough copper.  The Thalers included approximately 7% copper. This Thaler Standard became THE standard (eg: even the Brits’ “Sterling” standard was close to the Thaler at 92.5% Silver and 7.5% Copper) for many centuries.  Then the Americans raised the bar in “Hardness” by adopting a 90% Silver and 10% Copper alloy standard in 1792.  To this day in the Silver Industry “Coin Metal” means a 90-10 alloy.  Below is a chart that amongst other things presents the Provenance of the US Dollar:

To understand what a US Dollar IS!, may I recommend the world expert on the subject – Dr. Edwin Vieira and his essay on the topic or his magnum opus Pieces of Eight.

When the US Federal Government Mint began minting gold and silver coins again in 1985 they knowingly minted coins that COULD NOT be used in every day exchange. Instead of following the US Coin standard (90-10 alloy) set by the Founding Fathers that had stayed the same from 1792 to 1964 they minted 99.9% pure medallions. All private mints fell right in line world wide. After all WHO wouldn’t want 99.9% pure coins? These coins are beautiful “Collectors Items” BUT they like the Dodo Bird will never fly high as mediums of exchange.

So what is a Silver Investor to do ?
Stay Tuned for More

But until then remember the Fibonacci Financial Mantra:
CAUTION:  There are a wide variety of ways to protect your assets and profit from the tidal changes taking place in the world economy ranging from the very conservative to the highly speculative.

But you need active professional guidance – Contact us at Fibonacci Financial.

Do not get the idea that you can trade or make investment decisions from our blog entries.  These blog entries are EDUCATIONAL  and are an introduction to our services and DO NOT constitute investment advice.